A method and implementing system are provided in which merchants are enabled to designate re-seller return locations to customers for returned items. In an exemplary embodiment, a merchant is notified that a customer wishes to return an item purchased. The merchant then sends the customer a return label for the returned item containing the address of the re-seller for the merchant. The re-seller then notifies the merchant when the item has been received and the merchant then credits the account of the customer for the returned item. In a second exemplary embodiment, upon receipt of notice from the customer of the return, the merchant then makes the item available for an auction purchase to a number of bidders. When a winning bid is known to the merchant, the return address of the winning bidder is then sent to the customer for use in returning the purchased item.