How do I respond when a customer asks for a refund on Etsy but my shop doesn’t offer refunds?

Hi! You can absolutely stay “no refunds” in your Etsy policies and still sound helpful—your goal is to (1) understand the reason, (2) offer the right fix, and (3) keep everything in Etsy Messages so it’s documented.

Here’s a solid, professional reply you can send right now (edit the brackets):

“Hi [Name], thanks for reaching out—sorry to hear there’s an issue with your order. My shop’s policy is that I don’t accept refunds/returns, but I do want to make this right. Can you tell me what’s going on (and, if applicable, send a couple photos of the item and packaging)? Once I have those details, I can offer the best solution—such as a replacement, repair, or another option depending on the situation.”

When it’s smart (or necessary) to make an exception

Even with a “no refunds” Etsy policy, you’ll usually want to offer a refund or replacement in these situations, because they can become an Etsy case (and Etsy may refund the buyer anyway if it qualifies):

1. Arrived damaged

• Ask for clear photos of the damage + packaging.
• Typical good outcome: replacement or refund (often without requiring a return if it’s clearly broken and low value).
• Message you can use:
  “Thanks for the photos—this definitely isn’t how it should arrive. I can [send a replacement / refund you] right away. Which would you prefer?”

1. Not as described / wrong item

• If you shipped the wrong variation/size/color, or the listing photos/description weren’t accurate, it’s best to fix it quickly (replacement or refund).
• Message:
  “You’re right—this doesn’t match what was ordered/listed. I’m sorry about that. I can [send the correct item / issue a refund].”

1. Not received / shipping issue

• First, confirm it’s past the estimated delivery window and check tracking status.
• If tracking shows delivered, ask them to check household/mailroom/neighbors and contact the carrier. If it’s still missing, decide whether you’ll replace/refund as a courtesy (varies by shop and situation).
• If tracking shows in transit or stalled, you can offer: wait a few more days, open a carrier inquiry, or replace/refund depending on cost and how long it’s been.
• Message:
  “I’m happy to help—tracking currently shows [status]. Could you please confirm your shipping address is correct and check with your local post office/mail area? If it still doesn’t turn up, we’ll figure out the next step.”

1. Late delivery

• If it’s truly late past Etsy’s estimated window, Etsy may consider it eligible for a refund under their protections in some cases. Practically, you’ll often save time by offering a solution (replacement, refund, or a small courtesy discount) if the buyer no longer needs it.

When you usually don’t refund (but can still help)

These are the cases where “no refunds” is most defensible—just be calm and offer options:

• Buyer dissatisfaction / “I don’t like it” when the item matches the listing (photos, size, materials) and arrived in good condition.
• Personalized/custom items (many shops don’t take these back unless there’s a defect or your error).
• Digital downloads (since they can be accessed immediately), though you can still troubleshoot file issues.

A polite message for “it matches the listing” situations:
“Thanks for explaining. Since the item matches the listing description/photos and was made/shipped as ordered, I’m not able to offer a refund. If you tell me what felt off (size, color, fit, etc.), I’m happy to help with [tips/adjustments] or discuss a replacement option where possible.”

One important “heads up”

Even if your Etsy shop policies say “no refunds,” buyers can still be eligible to open an Etsy case for specific problems (like non-delivery, damage, or not-as-described) after they’ve contacted you through Help with Order and waited the required time. So for those issue-types, it’s usually best to resolve quickly inside Messages rather than “policy-only” replies.

If you tell me what the buyer’s reason is (damaged, not received, doesn’t match, changed mind, etc.) and whether it’s customized or not, I can help you write the exact best reply for that scenario.