reship order, delete shipping label, create second shipping label
How can I re-process and re-ship an order after it has been returned to us by UPS?
This assumes no refund or further capture of funds needs to happen. To resend the returned shipment, you'll need to create a second shipping label and delete the first label.
To delete the first label, click the order number, then click the blue Shipping Labels button at the bottom of the order summary page. On the shipping label screen, click the Details hyperlink to the right (in the Labels column). Click the Force Delete button. This will delete the label and the tracking numbers, and will restore the order status to Unshipped.
Now you will be able to create a second label. Remember that in Settings/Boolean Options, Shipped Email is turned on, so when you create the second label the customer will be notified that the package has shipped or will ship (depending upon the date you put on the label).