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Returns On Shopify

Returns are an integral part of your e-commerce business. You may use returns as a part of your customer engagement model to drive competitive advantage.

However, ineffective and inefficient returns programs can impact both the top line and the bottom line of your e-commerce business. Not only this, poor returns programs can impact your customer relationships and hence reduce sales.

As per a study, 67% of shoppers check the company’s return policy before purchasing a product, indicating that customers’ ability to easily return a product is an important differentiator when choosing where to shop. Another study indicated that 92% of the customers would buy an item again if the online returns process were easier.

These statistics indicate that buyers want a seamless returns process. Therefore, managing returns is essential to keep customers and remain profitable as an e-commerce business.

Shopify, as an e-commerce platform, provides you with tools and services to help you manage returns seamlessly and ensure a smooth customer experience. With these tools, you can design a returns management process that is simple, reliable, and targeted to your customers’ needs. A well-designed returns management process not only helps you to manage returns and refunds but also improves your product assortment from one central place.

If you run a Shopify store and want to know how to process returns, you need not worry as in this article we are going to walk you through how to handle returns on Shopify step-by-step. Besides this, we are also going to discuss why it is important for your Shopify store to have a well-designed refund policy.

How Do Returns Work On Shopify?

A return order or simply a ‘return’ represents the intent of your buyer to ship one or more items from an order back to you (merchant) or a third-party fulfillment location.

Accordingly, the lifecycle of a return starts with your customer who first submits a request to return an item that was previously fulfilled by your store. On receiving such a request, you as a merchant review the request and take necessary action, that is, either approve or decline the request depending upon the condition of the items returned and the terms and conditions of your return policy.

In case the condition of the items returned is not up to the mark, you may decline the return request. As a result, neither refund will be issued nor items will be replaced by your customer. Also, the inventory is not restocked, instead, the items are disposed of.

However, if you approve the return request submitted by your customer as the returned items are in good condition, you either issue a refund or replace the items for your customer. In either case, the inventory is restocked.

Also Read: From Returns To Taxation: Unpacking The Refund Process On Shopify

The above is a simple return process for any eCommerce store. If you run a Shopify store, you may have to undergo a similar process with slight variations depending on your online store’s requirements.

The following is the step-by-step process of how returns work on Shopify.

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1. Customer Requests A Return

When customers want to return products, they should first contact your customer support or initiate the return process through their customer account on your website.

Once the customer submits a return request, a return gets created in your Shopify Admin with the status ‘Requested’. Once the return is created, you as a Shopify merchant can check the return’s status as well as retrieve the ID for such a return.

2. Review The Return Requested

Now, you as a merchant can manage the return request in your Shopify Admin by taking the following actions:

  • Determine the eligibility of the return
  • Approve or decline the return request manually
  • Issue a refund manually (if applicable)

If you approve a return request, the status of the return created in your Shopify Admin changes from ‘Requested’ to ‘Open’. Furthermore, Shopify creates a reverse fulfillment order the moment you approve the return request. Once the reverse fulfillment order gets created, it also enables you to create a reverse delivery.

However, if you decline a return request, the status of the return created in your Shopify Admin changes from ‘Requested’ to ‘Declined’. Furthermore, Shopify will not create a reverse fulfillment order. As a result, you cannot add any shipping to the declined return.

Also Read: How To Set Up Shipping On Shopify?

Note that you can decline a return request only if a return meets the following two criteria:

  • The return must have the ‘Requested’ status.
  • It is not possible to refund the return request.

3. Reverse Fulfillment Order And Reverse Delivery Gets Created

As mentioned in the previous step, if you approve the return requests submitted by your customers, Shopify will create a reverse fulfillment order that further enables you to create a reverse delivery for such an order.

Note that a reverse fulfillment order represents the work that’s required to process a return. It includes one or more items in a return that you as a Shopify merchant will process.

Whereas, a reverse delivery is a set of items that your customer, who submits a return request, packages together and sends it back to you.

Note that a reverse delivery contains the context of the items sent back, and how they’re being sent back. For instance, items might be sent back with a shipping label and tracking information. However, a reverse delivery does not include package tracking information. Also, you can have more than one reverse delivery for a single return.

4. Cancel A Return

There can be a possibility that you may create a return by mistake, or have an error in the created return, or a customer may change his or her mind about wanting to return an item. In such a scenario, you can cancel a return that you have created in your Shopify Admin. When you cancel a return, Shopify restores the return order’s line items to being fulfilled.

Note that you can only cancel a return if the return meets the following criteria:

  • It must be OPEN.
  • It cannot have canceled fulfillments.
  • It can’t have been refunded.
  • It cannot have dispositions.
  • It cannot have a Shopify Shipping return label. Returns with manually uploaded return labels and manually provided tracking information can be canceled.

Even returns to Shopify Fulfillment Network (SFN) might be cancelable. In such a case, if SFN rejects the cancelation request, then a “return failed” description displays in your Shopify Admin.

Once you cancel a return, it gets removed from the order details view in your Shopify Admin.

5. Receive the Returned Item

As stated earlier, once you create a return, Shopify creates a reverse fulfillment order which further enables you to create a reverse delivery.

When a reverse delivery is created, you receive the returned items from your customer. On receiving the returned items, you need to check whether such items are in sellable condition. If the items are returned in an opened or used condition, then you must dispose of such items during the inspection. However, if the returned items are in unopened or brand-new condition, then you can restock such items.

Depending upon the condition of the returned items, you either dispose of the returned items or restock such items in your inventory.

6. Issue A Refund

After inspecting the returned items and updating your inventory, the next step is to process and issue a refund if it is applicable. Note that when you create a return in your Shopify Admin, Shopify will suggest whether a refund applies to a return based on the items being reimbursed. You as a merchant can use the suggested refund object to generate an actual refund for the return.

If a return is eligible for a refund, this means you need to send the payment back to the customer. You may either refund an entire order or only a part of the order depending upon the terms and conditions of your return policy.

Also Read: From Return To Taxation: Unpacking The Refund Process On Shopify 

7. Close A Return And Update Inventory

Once you issue the refund, you need to close the return that you created in your Shopify Admin.

When you close the return, the line items of the return order either get restocked or the returned items are marked as ‘Returned’.

Ensure that your inventory is updated if the return order gets restocked to reflect the returned item and its condition. Shopify will often have inventory management features to help you with this.

How To Process Returns Through Shopify Admin?

Shopify allows your customers to submit product return requests directly in your online store. This means that there is no need for your customers to contact you in person to submit the return requests.

Thus, as a Shopify merchant, all you need to do is approve or decline the request in your Shopify Admin once your customer submits a return request. In case you approve a return request, a return gets created in your Shopify Admin. You can then email shipping instructions and return labels to your customer.

The following are the steps you need to follow to process returns through your Shopify Admin.

I. Activate Self-Serve Returns Feature

To allow your customers to submit return requests directly in your online store, you need to first activate self-serve returns in your Shopify Admin.

But before you can activate the ‘Self-Serve Returns’ feature, there are certain key requirements that you need to fulfill.

Without fulfilling these requirements, you may not be able to enable the ‘Self-Serve Returns’ feature completely.

  • First, ensure that you turn on self-serve returns in your Shopify Admin.
  • Second, you also need to ensure that you give your customers access to log in to new customer accounts as classic customer accounts do not support self-serve returns. Note that new customer accounts allow your customers to log in to your online store using a one-time 6-digit verification code sent by email. Unlike the classic customer accounts, your customers don’t require a password to log in to your online store. The classic customer accounts, on the other hand, require your customers to use an email as well as a password to log in to your online store. For this, they need to accept account invites or create a new account from the login page of your online store.

Now, there are two ways in which you can give your customers access to log in to new customer accounts:

a. First, you can use or switch to new customer accounts in settings in your Shopify Admin. To switch to new customer accounts, follow the steps below:

  • Log in to your account and go to your Shopify Admin.
  • Once you log in, go to ‘Settings’.
  • Under ‘Settings’, click on ‘Customer Accounts’.
  • Once you click on the ‘Customer Accounts’ click ‘Edit’ in the ‘Accounts In Online Store and Checkout’ section.
  • After clicking ‘Edit’, go to the ‘Login Experience’ section and select the option ‘Show Login Link In The Header Of Online Store And At Checkout’. If you choose this option, a login link is displayed in your online store. Usually, the link is displayed in the store’s header. However, the link’s placement may vary depending on your online store’s theme. A login link may also be displayed on the checkout page of your online store.
  • Then, go to the ‘Choose Which Version Of Customer Accounts To Use’ section and select ‘New Customer Accounts’.
  • Finally, to save the changes you have made, click the ‘Save’ button.

b. The second way in which you can give your customers access to log into new customer accounts is to add the URL for new customer accounts anywhere in your online store. For instance, you can add the URL to your store’s footer, refund policy, or another page in your online store. Note that this option allows you to continue using classic customer accounts in your online store and checkout and still give your customers access to request a return. Thus, when your customers click the new customer accounts URL, they’re asked to log in to their customer account. Once they log in, they can submit a return request.

After meeting all the above requirements, you can activate the self-serve returns in your Shopify Admin. Below are the steps that you need to follow to activate the self-serve returns:

  • Log in to your account and go to your Shopify Admin.
  • Once you log in, go to ‘Settings’.
  • Under ‘Settings’, click on ‘Customer Accounts’.
  • Once you click on the ‘Customer Accounts’, go to the ‘Self-Serve Returns’ section and then click ‘Turn On’.
  • Finally, to save the changes, click on the ‘Save’ button.

II. Manage Self-Serve Returns

Once your customer submits a return request, a return is created in your Shopify admin and an email is sent to you so that you can review the request. Depending upon the terms and conditions of your return policy and the condition of the items returned, you can either approve or decline the request in your Shopify admin.

a. Approve Return Request

After reviewing a return request, you can choose to approve it. Once you approve the return request and click the ‘Create Return’ button, a return is created in your Shopify Admin.

After creating a return, you must determine how to return the products. To return the products, you must first create return labels.

A return label is also known as a return shipping label. It is a pre-printed or electronically generated label that you can use as a merchant to facilitate the return of a product from a customer.

Return labels typically contain important information, including sender information, recipient information, tracking information, and instructions for customers on how to use the label, such as where to affix it on the package, which shipping carrier to use, and any specific return guidelines.

These labels help you to recover inventory that your customer no longer wants. Thus, you need to send your customers return shipping labels so that they can send the products back to you.

Shopify allows you to create return labels directly in your Shopify Admin if your online store as well as your customer’s shipping address are based in the United States. Once you create the return labels, you can send them to your customers through email.

Note that after you create a return, a confirmation email is sent to your customer. In case you create or upload a return label, then it’s also included in the email.

The following are the steps that you need to follow to approve the return request and create a return in your Shopify Admin.

1. Log in to your Shopify Admin and then go to ‘Orders’.

2. Then, under the ‘Orders’ section, click the order that you want to approve the return request for.

3. On clicking the requisite order, go to the ‘Return Requested’ section for such an order. In this section, review the request and then click ‘Approve’.

4. Then, in the ‘Return Shipping Options’ section, select one of the following options:

If you want your customers to return products to the Shopify Fulfillment Network, then select ‘Return Items to Shopify Fulfillment Network’.

If you want to create a return shipping label for your customer, then select ‘Create A Return Label in Shopify’. This option is available only if your primary location and customer shipping address are both in the United States.

If you want to upload an existing return shipping label for your customer, then select ‘Upload a Return Label’. On selecting the ‘Upload a Return Label’ option, the ‘Add Return Label’ page will be displayed. On this page, upload the PDF or JPEG file for your shipping label. You can even enter the ‘Tracking Number’ and ‘Shipping Carrier’ if you have this information.

If you want to create a return without any return shipping information, then select ‘No Return Shipping’.

Finally, click ‘Create Return’ to create a return in your Shopify Admin.

b. Decline A Return Request

After reviewing a return request, you may decline it if it is not as per the terms and conditions of your return policy.

However, to decline a return request, you need to choose a decline reason and design a decline message for your customer. Note that the reason that you choose to decline the return request is not displayed to your customer and is only for your internal use.

Once you decline the return request, your customer receives an email with the decline message. To decline a request in your Shopify Admin, you need to follow the steps below:

1. Log in to your Shopify Admin and go to the ‘Orders’ section.

2. In the ‘Orders’ section, click the order that you want to decline the return request for.

3. Once you select the order that you want to decline the return request for, then go to the ‘Return Requested’ section. In this section, review the request and then click ‘Decline’.

4. After clicking the ‘Decline’ button, go to the ‘Decline Reason’ field. In this field, select one of the decline reasons. A decline reason does not get displayed to your customer.

5. Once you select the reason for decline, go to the ‘Message To Customer’ field. In this field, type in a message for your customer and describe why you’re declining the return request.

6. After creating the decline message, click ‘Decline Return Request’.

III. Set Up A Return And Refund Policy

After activating the self-serve returns in Shopify, the next step is to create a return and refund policy. The policy lays down the return rules stipulating the situations when customers can request returns and how returns fees are implemented on your online store.

As mentioned earlier, the prerequisite for allowing your customers to request returns on your online store is to activate the self-serve returns in your online store. Besides defining return rules and setting up those rules in your online store, you can also design a written return and refund policy.

Let’s discuss how you can create return rules, apply those rules in your online store, and how you can design a written return and refund policy.

a. Return Rules

Shopify allows you to set up return rules so that whenever a customer places an order in your online store, these rules are applied automatically. Note that to use the return rules, you must activate the self-serve returns in your Shopify Admin. Once you activate the self-serve returns, your customers can request returns from their accounts, where return rules display eligible items and return fees.

Accordingly, when a customer places an order and requests a return for such an order, the return rules automatically apply to the order. Then, depending on the return rules you set up, an estimated refund amount is displayed to your customer.

Also, note that your customers can only submit return requests for items that are eligible under the return rules you set up. This allows you to have more control over the return requests and prevents your customers from submitting return requests for items that are not eligible depending on your return policy.

Also, the default return rules that you set up in your Shopify Admin apply to most items and include the return rules about the return window, return shipping costs, and restocking fees.

Return Window refers to the number of days within which your online store can return the item from the date of purchase. Typically, a return window starts from the date on which the items were delivered to your customer. In case the delivery date is unavailable, the return window starts on the item’s fulfillment date plus a buffer for transit time. Now to set the default return rules with regards to the return window, you can select a preset return window or enter a custom number of days. For instance, you can select one of the following options:

  • 14 days
  • 30 days
  • 90 days
  • Unlimited
  • Custom days

Then you can also set default rules for return shipping costs. You can select one of the following options to handle your return shipping costs:

  • Offer free return shipping
  • Add a flat return shipping fee rate that’s charged one time per return
  • Allow your customer to buy their return shipping label

Next, you can also set default rules for restocking fees. You can choose whether you want to apply a restocking fee that is a percentage of the return. In case you choose to do so, then a restocking fee is also displayed to your customers.

Finally, you can choose the products or product collections that are not eligible for returns as final sale items. Examples of such items include perishable, custom, or personal care items, or items with large discounts as these items cannot be returned.
For such items, your customers cannot submit return requests.

b. Application Of Return Rules

Once you have defined the return rules, the next step is to set these rules in your Shopify Admin. The following are the steps that you must follow to set the return rules:

1. Go to your Shopify admin and then click on ‘Settings’. Under ‘Settings’, select ‘Policies’.

2. After clicking on ‘Policies’, go to the ‘Return Rules’ section. In this section, click the ‘Manage’ button.

3. After clicking on ‘Manage’, go to the ‘Return Window’ section. In this section, select how much time a customer has to request a return after an order has been delivered.

4. Then go to the ‘Return Shipping Cost’ section. In this section, select how you want to handle your return shipping fees. For instance, if you want to charge a flat rate for return shipping, then enter your flat rate.

5. The next step is optional. This step relates to the restocking fee. If you choose to charge a restocking fee, then select ‘Charge Restocking Fee’ and then add a percentage.

6. This step is also Optional. It relates to selecting the collections or products that are not eligible for returns as final sale item exceptions. To choose such items, do the following:

  • Go to the ‘Final Sale Item Exception’ section. In this section, select ‘Specific Collections’ or ‘Specific Products’.
  • Then, search for collections or products, or click ‘Browse’.
  • Once you click on ‘Browse’, you must then select collections, products, or product variants that you want to choose as exceptions.
  • After selecting the products or collections, click ‘Done’.

7. After you followed all the above steps, click on the ‘Save’ button to save the changes that you have made.

8. Once you have saved the changes, then go back to ‘Policies’.

9. Under ‘Policies’, go to the ‘Return Rules’ section. In this section, click on the ‘Turn On’ button.

c. Designing Return And Refund Policy

Apart from defining the return rules and applying them in your Shopify Admin, you can also generate a written return and refund policy for your online store.

Note that Shopify provides you with the return and refund policy template. However, this template does not automatically include or cover the return rules that you have defined for your online store.

Also, the return and refund policy template can be generated only in English and for the checkouts that are set to the English language. In case you operate your online store in any language other than English language, then you need to create your policy.

When setting up your online store, you can use the return and refund policy template that Shopify generates for you. However, you must contact a law expert and get your policy reviewed before publishing it on your website.

The following are the steps that you must follow to generate a return and refund policy template or to publish a customized policy.

1. Go to your Shopify Admin. Then go to ‘Settings’ and then click ‘Policies’.

2. Under ‘Policies’, go to the ‘Written Return And Refund Policy’ section. In this section, enter your store’s customized return and refund policy in case you have one. You can also generate the return and refund policy template in your Shopify Admin. To do that, click ‘Create From Template To Generate Default Template Policy’.

3. Once you enter a customized policy or a template policy, review your return and refund policy and make any changes.

4. Then, click on ‘Save’ to add your return and refund policy.

5. After you add your return and refund policy, it’s automatically linked in the footer of your checkout pages. To enable your customers to view their return and refund policy before they check out, it’s a great idea to link your return and refund policy in your store navigation.

IV. Creating A Return

As mentioned before, you can create and manage your returns, send shipping instructions and return labels to your customers, track returned items, restock inspected items, and refund payments to your customers from your Shopify Admin.

The following section describes the steps that you need to follow to create a return for an order.

1. Go to your Shopify Admin. Then, go to ‘Orders’.

2. Once you click ‘Orders’, then select the order that you want to refund.

3. After selecting the order, click ‘Return’.

4. Once you click ‘Return’, go to the ‘Select Return Items’ section. In this section, enter the number of items that are being returned.

5. Then, go to the ‘Return Shipping Options’ section. In this section, select one of the following options:

  • If you want to create a return shipping label for your customer, then select ‘Create Return Label’. Note that you can avail of this option only if your primary location and customer shipping address are both in the US.
  • If you want to upload an existing return shipping label for your customer, select ‘Upload Return Label’. Once you do that, go to the ‘Add Return Label’ page. On this page, upload the PDF or JPEG file for your shipping label. You can even enter the Tracking number and Shipping carrier if you have this information.
  • If you want to create a return without any return shipping information, then select ‘No Return Shipping’.

6. Once you follow the steps above, click ‘Create Return’.

7. After you hit the ‘Create Return’ button, you’re prompted to create and send the label if you choose to create a return label.

This is how you can create a return for an order against which your customer submits a return request.

Note that you can create a return from an existing order that has at least one fulfilled line item that has not yet been refunded. In case there are no line items that have been fulfilled by your online store, then you should refund and restock the order instead.

Also, you must void the label before creating a return in case you purchased a shipping label for the order but didn’t use it.

Additionally, once you create a return, you can send any return shipping information to your customer and track the return. After you receive and inspect the returned items, you can issue a refund, and restock applicable items.

V. Refunding A Return

1. Refunding An Entire Order

Refunding an order means sending the payment back to your customer who submitted the return request in your online store. In case a return order is eligible for a refund, you can refund an entire order or only part of an order, depending upon the terms and conditions of your return and refund policy.

Note that you can refund an order without creating a return. However, you cannot create a return in your Shopify Admin after you issue a refund. Though, in some cases, you can cancel an order and issue a refund.

Furthermore, you have the option to restock the items and send a notification email to your customer as part of the refund process. You can restock the items from the order if there is no payment to refund.

Also, as a Shopify merchant, you can send the refund only to the original payment method that the customer used to make the payment against the order. In case a customer no longer has access to that payment method, then he or she needs to contact the bank or agency for the original payment method to claim the funds after the refund is sent.

In case you use Shopify Payments as a payment method and you issue a refund to your customer who submits a return request, then such refund amount gets deducted from your next available payout. Mostly, the refund is labeled as Pending for up to 2 business days. But, it may take up to 10 business days for your customer to receive the refunded amount.

Also, when you use Shopify Payments as a payment method, Acquirer Reference Numbers (ARNs) are generated for all the refunds through Shopify Payments. These ARNs are then sent to a Visa or Mastercard. Note that banks and credit card providers use ARNs to trace a transaction. In case any of your customers claim that they did not receive their refund, then you can provide such a customer with the ARN and ask them to contact their credit card provider to investigate.

The following are the steps that you need to follow to refund an order:

1. Go to your ‘Shopify Admin’ and then go to ‘Orders’.

2. Once you click ‘Orders’, then select the order that you want to refund.

3. After selecting the order you want to refund, click ‘Refund’.

4. After clicking ‘Refund’, enter the number of items in the order that will be refunded. Once you do this, the amount of the ‘Refund Total’ and not the ‘Total Available To Refund’ amount is updated. This amount is calculated after deducting any shipping charges. In case you want to charge the restocking fee to your customer, you can manually edit the refund total. You can also add a refund for any shipping charges. In case you want to refund any shipping charges, then follow the steps below:

  • Go to the ‘Shipping Field’ and then enter the shipping amount that you want to refund. Remember, this is optional.
  • Further, if an order contains any duties and import taxes, then you must select whether you want to refund ‘Duties And Import Tax On Refunded Items’ and ‘Additional Fees: Customs Clearance’. This is also an optional step.
  • Then, you must uncheck ‘Restock Items’ if you’ve shipped the items but your customer has not returned them yet. Note that this checkbox is visible only if you’re tracking inventory for the items included in the order.
  • Next, in the message box, enter a reason for the refund. Again this is an Optional step.
  • Then, uncheck the ‘Send A Notification To The Customer’ box in case you do not want to send an email to your customer when you issue the refund as this box is checked by default.
  • Finally, click the ‘Refund’ button to refund your customer’s order.

2. Refunding A Part Of An Order

Apart from refunding the complete order, you can even issue a partial refund for specific items in an order in your Shopify Admin. After issuing a partial refund, you can then issue additional partial refunds until you reach the total available to refund, which is nothing but the original amount of the order.

To issue a partial refund, you need to follow the steps below:

1. Go to your Shopify admin and then go to ‘Orders’.

2. After clicking ‘Orders’, select the order that you want to refund.

3. Once you select the order that you want to refund, go to the ‘Order Details’ section. In this section, click ‘Refund’.

4. After you click ‘Refund’, enter the number of products that you want to refund. Any products with a quantity set to ‘0’ won’t be refunded. Once you enter the quantity, the ‘Refund Amount’ and not the ‘Total Available To Refund Amount’ is updated. The ‘Refund Amount’ excludes any shipping charges. Note that you can manually edit this amount in case you want to charge your customer a restocking fee. You can also add a refund for any shipping charges.

5. In case you want to refund any shipping charges to your customer, then you must go to the ‘Shipping’ field and enter the shipping amount that you want to refund. Remember, this step is optional.

6. In case your order includes duties and import taxes and you want to refund the same, then you must check the box ‘Refund Duties and Import Tax On Refunded Items and Additional fees: Customs Clearance’.

7. Then, you must uncheck ‘Restock Items’ if you’ve shipped the items but your customer has not returned them yet. Note that this checkbox is visible only if you’re tracking inventory for the items included in the order.

8. Next, in the message box, enter a reason for the refund. Again this is an Optional step.

9. Finally, click the ‘Refund’ button to refund your customer’s order.

VI. Restocking An Order

You can restock the items without creating a return or a refund in case there is no payment to refund for an order. Follow the steps below to restock an order:

1. Go to your Shopify Admin and then go to ‘Orders’.

2. Once you click ‘Orders’, select the order that you want to restock.

3. After selecting the requisite order, click ‘Restock’.

4. Then, enter the number of items in the order that you want to restock.

5. After adding the quantity, click ‘Restock Items’.

VII. Mark Order As Returned

The entire return process gets completed once you create a return, receive the items from your customer, and refund the payment to your customer. Furthermore, the order gets closed automatically if you choose to restock the items as part of the refund. If you choose not to restock the items, then you can mark the order as returned once you receive the items from your customer.

To mark the order as returned, you need to follow the steps below:

1. Go to your Shopify Admin and then go to ‘Orders’.

2. Once you select ‘Orders’, click the order that you want to mark as returned.

3. After you choose the requisite order, click ‘Mark As Returned’.
How To Handle Returns Via Shopify POS?
Just like the self-serve returns feature in Shopify, you can refund an entire order or part of an order from the Shopify POS Orders screen. Furthermore, the items that you refund are added to the inventory of your Shopify POS app’s assigned location.

To refund items via Shopify POS, you need to follow the steps below.

1. Go to the home screen of your Shopify POS app and then click on ‘Orders’.

2. From the list of orders displayed, select the order of the item being returned.

3. Once you choose the requisite order, select ‘Return’.

4. Use the + and – to enter the number of each item that you’re refunding.

5. Once you add the relevant quantity to be returned or refunded, select ‘Next’.

6. In case, you do not want to return an item to your inventory, you must select ‘Restock At This Location’, deactivate the ‘Restock’ option, and select ‘Save’. Note that this step is optional.

7. In case you want to refund the cost of shipping to your customer, tap ‘Refund Shipping. Again, this step is optional.

8. Furthermore, if you want to issue a gift card to the customer for the refund amount, then you must activate the ‘Refund Balance To Gift Card’ option. Note that to avail of this option, you must ensure that the gift card product needs to be published to the POS sales channel.

9. Then there can be a possibility that your customer used more than one payment method to make the original payment. In such a scenario, you can split the refund between the same payment methods that they used in your Shopify Admin. Select ‘Edit’ in the ‘Amount To Refund’ section to do so. In this section, enter the amount that you want to refund to each payment method.

Note that the maximum amount that you can refund with a particular payment method is the amount that a customer paid with that payment method. Thus, orders paid with a custom payment method can only be refunded with the custom payment method.

10. After you have entered the amount that you need to refund with a particular payment method, you may add a reason for the return in the box below.

11. Then, select ‘Return’ once you are ready to process the refund.

12. Next, select ‘Mark As Refunded’.

13. Then, you may provide a receipt to your customer, though thios is optional.

14. Finally, select ‘Done’.

Why Your Shopify Store Needs A Refund Policy?

Your Shopify store needs a refund policy for several reasons.

1. Transparency And Trust

A refund policy demonstrates transparency and helps build trust with your customers. Shoppers feel more confident making a purchase when they know they have options for returns or refunds if they are dissatisfied with their order.

2. Legal Requirement

In many jurisdictions, having a clear refund policy is a legal requirement. Failing to have one can result in legal issues or penalties.

3. Customer Expectations

Consumers often expect to have the option to return or exchange products they’ve purchased, and a refund policy sets clear expectations for how this process works.

4. Customer Satisfaction

Providing a straightforward and fair refund policy can lead to higher customer satisfaction. Happy customers are more likely to make repeat purchases and recommend your store to others.

5. Competitive Advantage

Having a well-defined refund policy can be a competitive advantage. If your policy is more customer-friendly or flexible than your competitors, it can attract more business.

6. Reduced Customer Service Queries

A clear refund policy can help reduce the number of customer inquiries related to returns and refunds. Customers can often find the information they need in the policy, saving you time and resources.

7. Risk Management

A refund policy allows you to manage the risk associated with returns and refunds more effectively. By outlining the conditions under which refunds are provided, you can mitigate losses and maintain control over your finances.

8. Brand Reputation

Your store’s reputation can be enhanced or tarnished based on how you handle returns and refunds. A well-structured refund policy can contribute positively to your brand’s image.

9. Improved Record-Keeping

Having a formal refund policy can help you keep track of returns and refunds more efficiently, ensuring that you process them accurately and consistently.

10. Customer Retention

Offering a hassle-free refund process can help retain customers who might otherwise avoid your store if they fear a difficult or unfair return experience.

When creating a refund policy for your Shopify store, be sure to make it easily accessible on your website, provide clear instructions on how the process works, and ensure it complies with local laws and regulations. Tailor your policy to your specific products and industry, and make sure it is fair to both your customers and your business.

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