Discontinued: As of 2022 This Feature is No Longer Offered By PayPal
Starting November 27, 2022, PayPal will no longer provide return shipping labels or accept refund requests for return shipping costs.
If you’ve made any not-so-great purchases through PayPal recently that don’t offer free returns, you’re in luck. Did you know that PayPal has a hidden program that gives return shipping reimbursements to U.S. personal account holders?
You are able to get reimbursed for up to 30 dollars of return shipping fees on 12 orders every year! Yes, including international orders. This is incredibly handy if you made a purchase from a website that charges you money for a return label, or asks you to pay for the return shipping.
I recently made an order from a UK based retailer, Sister Jane. I had to return one pair of pants that didn’t fit properly, and the return shipping to the UK was a whopping $26. Because I made this purchase through PayPal, I was able to make a claim and then upload evidence of the label. PayPal refunded me the $26 a week later.
To make a claim, visit Return Shipping Refund | Sign Up | PayPal US and activate the service for your PayPal account.

How to qualify for the PayPal return shipping refund
First, you must activate the service by logging into your PayPal account. Only U.S. personal accounts are eligible per the terms and conditions.
Second, the order must have been paid/ processed entirely through PayPal. It will show up on your transactions. Click to view your activity and choose the transaction you want to be reimbursed for. Then scroll down in the transactions details until you see a link for “Return Shipping On Us.”

Third, click the link. This will take you to the form where you can log your claim.
Fourth, you will need to upload evidence shown in the form. In the past, what I uploaded was a photo of my shipping label attached to the parcel I was returning before I mailed it. The shipping label had the cost of the label on it already. If your label doesn’t have the price listed (usually in the top right corner), you will need to also attach a receipt showing the price. Sometimes the vendor provides you with a label already, and deducts the cost from your return amount. In that case, PayPal wants to see the refund email from the seller showing the amount refunded to you.

Lastly, once you fill out the form hit submit and you will receive a confirmation e-mail. Then, PayPal will update you on the status of your refund. Easy!