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How to process a refund?

LONCANI allows you to refund your customer. Learn how to do it.
Written by Stephanie G.
Updated 1 month ago

LONCANI marketplace helps you sell your products without all the complicated processes of selling, returning, requesting a refund and more. We made it easier for you to manage the return and refund process. 

All of our vendors are requested to connect their stripe account to their LONCANI account for payment, payout and refund. 

Automatic Order Refund Process via Stripe

With this version, the vendors can refund their customers without the manual intervention of the Admin. Here’s how the vendor can do it:

LONCANI refund request allows you to manage refund requests as an admin. It also lets vendors apply for refunds.

With this Feature You can Refund:

  • One or more products from one order
  • The complete amount of an order
  • From sub-orders
  • Shipping charges and tax if applicable
  • You can process multiple refund requests for the same order, but only one refund request can be processed each time

Refund Calculations for Dokan Admin Commission & Vendor Revenue

In Dokan, all calculations are made from the final order balance for admin and vendor excluding the shipping and tax rates. The shipping and tax charges belong to the vendor only.

Case 1 (Without shipping and tax)

Say, you are refunding an order of 10$ and the admin has a 10% commission rate. Which means the current admin commission is 1$ and the seller is receiving 9$.

So, now you are refunding 5$ from that order. Which makes the final order balance 5$. So, now your revised admin commission and seller income will be .5$ and 4.5$ respectively.

We can equate this as:

  1. Order balance – Refund = New order balance
  2. Commission = New order balance x 10%
  3. Vendor revenue = New order balance – Commission

Case 2 (With shipping and tax)

Say, you are refunding a order of 12$ where you have 2$ in shipping rate. The admin has a 10% commission rate.

The admin will still receive a 1$ commission because the actual order value without the shipping is 10$ (12$-2$).

But the vendor will get 11$ (9$+2$).

Remember: The actual order value is always calculated after deducing the shipping, tax and refund.

So now if there is a refund of 5$ on the order and the vendor is also refunding the shipping or tax.

Now, when the admin approves it, it will seem that a total 7$ (5$+2$) will be reduced from the 12$ order.

But in calculation, the shipping will be deduced directly from the vendors account besides the deduction shared with the admin.

So the equation is:

  1. New order balance = (Order – Refund amount on products) + (Vendor account – Shipping/Tax)
  2. Commission =  New order balance x 10%
  3. Vendor revenue = New order balance – Commission

Note that the shipping or tax has been reduced from the vendor at step 1 of the calculation. So now the admin will get .5$ and the vendor will get 4.5$ but lose extra 2$ for the shipping or tax.

Requesting a refund (Vendor)

Step 1: Customer – vendor negotiation

The customer can start negotiation for refund from the Dokan Store Support or product inquiry add on, order note or directly contact the vendor via other means (email. phone etc.).

The customer must provide the order number. If the order has multiple items and the customer only needs one product or one type of product refunded, he must include those details.

Step 2: Sending a request to Stripe

Suppose a vendor has the following order that he or she wants to refund.

After selecting the order the vendor will get the “Request Refund” option:

After clicking on the “Request Refund” button you will get the option to enter the amount you want to refund. Here for example the vendor has input 45 dollars.

After entering the amount, the vendor just needs to click on the “Submit Refund Request” button to move onward.

Enter the amount you want to refund

Next, the vendor will get a pop-up alert mentioning the fact that he or she is refunding. Clicking on the ‘Ok‘ button will finish the refund process. Otherwise he or she can select the ‘Cancel’ button to decline the process.

Upon clicking the ‘Ok‘ button he or she will get another success pop-up regarding the completion of the process:

Here is how the vendor can see the refunded amount from the order:

Also, the vendor can get the list view of the refunded order by going to the Vendor Dashboard → Orders.

Points to Remember:

  • The vendors can also refund partially with this feature.
  • The admin has to enable the Dokan Stripe Connect option to cater this service to the vendors.


How Do I Know If My Refund Request Is Complete? (Vendor)

From your Vendor Dashboard, navigate to the order, click on the details and look for order status updates like this.

For partially refunded requests, the order status will remain completed.

For fully refunded orders, the status will change to Refunded.

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