How to Automate Returns and Reverse Logistics Tracking

Returns are an inevitable part of e-commerce. On average, 20-30% of online purchases are returned, and customers expect the same level of tracking visibility for returns as they do for deliveries. Yet many businesses still handle return tracking manually. This guide shows how to automate the entire process.

Why Return Tracking Matters

The Customer Perspective

When a customer sends back a product, they want to know:

• Was it picked up? — Confirmation the return process started
• Where is it now? — Visibility during transit
• Has it arrived? — Confirmation the warehouse received it
• When will I get my refund? — The most important question

Without tracking, customers flood your support team with “Where is my refund?” inquiries — the returns equivalent of WISMO.

The Business Perspective

• Inventory planning — Know what’s coming back and when
• Fraud prevention — Verify that items were actually shipped
• Faster refunds — Trigger refunds automatically when items arrive
• Carrier accountability — Track return carrier performance

Architecture

Customer Initiates Return
         ↓
Return Label Generated (carrier + tracking number)
         ↓
Register Tracking with WhereParcel
         ↓
Webhook: picked_up → Notify customer "Return received by carrier"
         ↓
Webhook: in_transit → Update internal status
         ↓
Webhook: delivered → Trigger warehouse receiving workflow
         ↓
Warehouse confirms item condition
         ↓
Auto-process refund → Notify customer "Refund issued"

Step 1: Generate Return Labels

When a customer requests a return, generate a prepaid return label:

async function createReturnLabel(order, returnRequest) {
  // Generate label with your shipping provider
  const label = await shippingProvider.createLabel({
    from: order.shippingAddress,
    to: WAREHOUSE_ADDRESS,
    weight: returnRequest.estimatedWeight,
    service: 'standard',
  });

  // Store return record
  const returnRecord = await db.returns.create({
    orderId: order.id,
    customerId: order.customerId,
    carrier: label.carrier,
    trackingNumber: label.trackingNumber,
    status: 'label_created',
    items: returnRequest.items,
    reason: returnRequest.reason,
    labelUrl: label.pdfUrl,
  });

  // Register tracking immediately
  await registerReturnTracking(returnRecord);

  // Send label to customer
  await sendEmail(order.customerEmail, {
    subject: 'Your return label is ready',
    body: buildReturnLabelEmail(returnRecord, label),
  });

  return returnRecord;
}

Step 2: Register Return Tracking

Register the return shipment with WhereParcel as soon as the label is created:

async function registerReturnTracking(returnRecord) {
  const response = await fetch('https://api.whereparcel.com/v2/track', {
    method: 'POST',
    headers: {
      'Authorization': `Bearer ${process.env.WHEREPARCEL_API_KEY}:${process.env.WHEREPARCEL_SECRET_KEY}`,
      'Content-Type': 'application/json',
    },
    body: JSON.stringify({
      trackingItems: [{
        carrier: returnRecord.carrier,
        trackingNumber: returnRecord.trackingNumber,
      }],
      webhook: {
        url: 'https://yourstore.com/webhooks/returns',
        events: ['status_changed', 'delivered', 'exception'],
      },
    }),
  });

  return response.json();
}

Step 3: Handle Return Events

Process webhook events specific to returns:

app.post('/webhooks/returns', async (req, res) => {
  res.status(200).json({ received: true });

  const { data } = req.body;
  const returnRecord = await db.returns.findByTracking(data.trackingNumber);
  if (!returnRecord) return;

  switch (data.status) {
    case 'picked_up':
      await handleReturnPickedUp(returnRecord, data);
      break;
    case 'in_transit':
      await handleReturnInTransit(returnRecord, data);
      break;
    case 'delivered':
      await handleReturnDelivered(returnRecord, data);
      break;
    case 'exception':
      await handleReturnException(returnRecord, data);
      break;
  }
});

async function handleReturnPickedUp(returnRecord, data) {
  await db.returns.update(returnRecord.id, {
    status: 'in_transit',
    pickedUpAt: new Date(data.events[0].timestamp),
  });

  await sendEmail(returnRecord.customerEmail, {
    subject: 'Your return has been picked up',
    body: `Your return for order #${returnRecord.orderId} has been picked up by the carrier. We'll notify you when it arrives at our warehouse.`,
  });
}

async function handleReturnDelivered(returnRecord, data) {
  await db.returns.update(returnRecord.id, {
    status: 'received_at_warehouse',
    deliveredAt: new Date(data.events[0].timestamp),
  });

  // Trigger warehouse inspection workflow
  await warehouseQueue.add('inspect_return', {
    returnId: returnRecord.id,
    items: returnRecord.items,
  });

  await sendEmail(returnRecord.customerEmail, {
    subject: 'Your return has arrived at our warehouse',
    body: `Your return for order #${returnRecord.orderId} has been received. We're inspecting the items and will process your refund within 2-3 business days.`,
  });
}

async function handleReturnException(returnRecord, data) {
  await db.returns.update(returnRecord.id, {
    status: 'exception',
    exceptionReason: data.events[0].description,
  });

  // Alert internal team
  await sendInternalAlert({
    type: 'return_exception',
    returnId: returnRecord.id,
    reason: data.events[0].description,
  });

  await sendEmail(returnRecord.customerEmail, {
    subject: 'Update on your return shipment',
    body: `There's been an issue with your return shipment. Our team is looking into it and will reach out shortly.`,
  });
}

Step 4: Auto-Process Refunds

Once the warehouse confirms the item condition, automatically process the refund:

async function processReturnInspection(returnId, inspectionResult) {
  const returnRecord = await db.returns.findById(returnId);

  if (inspectionResult.approved) {
    // Calculate refund amount
    const refundAmount = calculateRefund(returnRecord, inspectionResult);

    // Process refund
    await paymentProvider.refund(returnRecord.orderId, refundAmount);

    await db.returns.update(returnId, {
      status: 'refunded',
      refundAmount,
      refundedAt: new Date(),
    });

    await sendEmail(returnRecord.customerEmail, {
      subject: 'Your refund has been processed',
      body: `We've processed a refund of ${formatCurrency(refundAmount)} for order #${returnRecord.orderId}. It should appear in your account within 5-10 business days.`,
    });
  } else {
    await db.returns.update(returnId, {
      status: 'rejected',
      rejectionReason: inspectionResult.reason,
    });

    await sendEmail(returnRecord.customerEmail, {
      subject: 'Update on your return',
      body: `Unfortunately, we were unable to process your return. Reason: ${inspectionResult.reason}. Please contact our support team for more details.`,
    });
  }
}

Step 5: Customer-Facing Returns Portal

Give customers a self-service portal to track their returns:

app.get('/returns/:returnId', async (req, res) => {
  const returnRecord = await db.returns.findById(req.params.returnId);

  // Fetch latest tracking from WhereParcel
  const tracking = await fetch('https://api.whereparcel.com/v2/track', {
    method: 'POST',
    headers: {
      'Authorization': `Bearer ${process.env.WHEREPARCEL_API_KEY}:${process.env.WHEREPARCEL_SECRET_KEY}`,
      'Content-Type': 'application/json',
    },
    body: JSON.stringify({
      trackingItems: [{
        carrier: returnRecord.carrier,
        trackingNumber: returnRecord.trackingNumber,
      }],
    }),
  }).then(r => r.json());

  res.render('return-tracking', {
    returnRecord,
    tracking: tracking.data,
    steps: getReturnSteps(returnRecord),
  });
});

function getReturnSteps(returnRecord) {
  return [
    { label: 'Return requested', completed: true, date: returnRecord.createdAt },
    { label: 'Label created', completed: true, date: returnRecord.createdAt },
    { label: 'Picked up by carrier', completed: !!returnRecord.pickedUpAt, date: returnRecord.pickedUpAt },
    { label: 'Received at warehouse', completed: !!returnRecord.deliveredAt, date: returnRecord.deliveredAt },
    { label: 'Inspected', completed: ['refunded', 'rejected'].includes(returnRecord.status), date: returnRecord.inspectedAt },
    { label: 'Refund processed', completed: returnRecord.status === 'refunded', date: returnRecord.refundedAt },
  ];
}

Key Metrics

Track these metrics to optimize your returns process:

Metric	Description	Benchmark
Return transit time	Days from pickup to warehouse	3-5 days domestic
Processing time	Days from warehouse receipt to refund	< 3 days
Total return time	Days from request to refund	< 10 days
Return tracking inquiries	Support tickets about return status	Should decrease 50%+
Auto-refund rate	% of returns processed without manual intervention	> 80%

Summary

Automating return tracking transforms a pain point into a competitive advantage. Customers get visibility, your team spends less time on manual tracking, and refunds are processed faster. Combined with WhereParcel’s webhook system, you can build a fully automated returns pipeline that handles everything from label creation to refund processing.

• Set up webhooks for reliable event handling
• Learn about rate limiting for high-volume tracking
• Explore the full API documentation