Handling returns and exchanges is an essential aspect of running a shopify dropshipping business. To handle returns and exchanges, you can set up a clear and easy-to-understand return policy on your website and offer a hassle-free return process for your customers. You can also work with your shipping service provider to ensure that returns and exchanges are processed quickly and efficiently. It's essential to handle returns and exchanges promptly to maintain a positive customer experience and build trust with your customers.