Creating returns and exchanges

You can create and manage returns directly from your Shopify admin. When you create a return, you can send your customer return shipping information, such as shipping instructions or return labels, and communicate the estimated refund. You can also add exchange items to a return, and communicate the estimated balance that might be due. Offering exchanges helps you retain revenue and potentially increase revenue through upsells.

After you receive return items, you need to process your return, and issue a refund, collect payment, or proceed with an even exchange. If your return has exchange items, then you also need to fulfill the exchange items.

Considerations for returns and exchanges

Before you create and process a return, review the following considerations:

• You can create a return only for fulfilled items that haven't been refunded.
• You can't add custom items as exchange items.
• If you're on the Shopify Plus plan, then you can activate the exchanges feature using the feature test drive.
• Exchange items inventory isn't reserved until you process the return.
• You can't add exchange items to orders with duties, but you can create a return for orders with duties.
• Order level discounts can't be applied to exchange items, but you can add a product discount to exchange items.
• To create returns, you need to be the store owner or have the Return permission. To refund a return, you need to have the Refund to original payment or Refund to store credit permission, depending on the refund method. Learn more about Staff permissions.
• Returns and exchanges share the same limitations as order editing. Review the considerations for editing orders for more information.

Understanding return financials

When you create a return, the financial outcome is calculated automatically. Return fees and exchange items are applied against returned items to determine whether a refund is due or payment needs to be collected. The order total updates after you process a return to display any remaining balance and the return is also reflected in your total sales reports. You can issue a refund immediately or wait and issue it later.

For returns with exchanges, customers get an email listing the items being exchanged and returned. If a customer owes you money, then they can pay after you process the return. You can send them an invoice when you process a return or later from the order details.

You can select which return items to process. The financial outcome of partially processed items might differ from processing everything at the same time. For example, processing only exchanges might require payment, even if processing everything would result in a refund. Consider the financial impact when choosing which items to process together. Avoid issuing refunds during partial processing if you'll need to collect payment later for remaining items.

Review the following table to learn more about the flow of funds in returns and exchanges and what actions you need to take in specific situations:

Description of flow of funds in returns and exchanges and what actions merchants need to take in specific situations

Situation	Action
You owe the customer money for a return or an exchange where the new items are less expensive than the returning items.	You need to process a return and issue a refund to your customer. You can issue a refund immediately or wait and issue it later.
The customer owes you money for a return or an exchange where new items and fees are more expensive than the returning items.	You need to process a return. You can collect the balance by sending an invoice when processing a return, or capture payment or mark your order as paid after you process a return.
New items and returning items have the same value, and it's an even exchange.	You need to process a return. The money paid for the returning items is applied to the new items.

Create a return

You can create a return from your Shopify admin. When you create a return, the return shipping fee and restocking fee are displayed based on your return rules. You can also edit the return fees for a specific return. The restocking fee can be edited by return or by item, but the return shipping fee can be edited only by return. You can also add exchange items to your return.

Return reasons that you can choose from vary based on the product category. For example, apparel products display reasons such as Too big or Too small. Products in other categories display their own category-specific reasons. These category-specific return reasons are available across your Shopify admin, POS, and self-serve returns. You can also view return reasons in your analytics to identify trends and understand why customers return products.

Steps:

Desktop

1. From your Shopify admin, go to Orders.

2. Click the order that you want to return.

3. Do one of the following:

   • If the order is fulfilled, then click Return.
   • If the order has unfulfilled items, then click More actions > Return.

4. In the Select quantity to return section, enter the quantity of items that you want to return

5. In the Return reason, select a return reason.

6. Optional: To edit a restocking fee or a return shipping fee, complete the following steps:

   1. In the Summary section, click Restocking fee or Return shipping.
   2. Enter a new restocking fee or return shipping.
   3. Click Done.
   4. Optional: You can also edit the restocking fee on an individual return item by clicking the fee in the line item total price.

7. Optional: To add exchange items to a return, complete the following steps:

   1. In the Exchange items section, click Add products.
   2. Select the exchange items, and then click Done.
   3. Optional: To apply a product discount to exchange items, complete the following steps:
      1. For the exchange item that you want to apply a discount for, click the exchange item's price.
      2. Enter a discount type, discount value, and a reason for discount.
      3. Click Done.

8. In the Return shipping options section, select one of the following options:

   • Select Create a return label in Shopify to create a return shipping label for your customer. This option is available only if your primary location and customer shipping address are both in the United States.
   • Select Upload a return label to upload an existing return shipping label for your customer. You can upload a PDF, PNG, or JPEG file for your return label or add a return label URL. You can also enter a Tracking number and Shipping carrier.
   • Select No shipping required to create a return without any return shipping information.

9. Click Create return.

Mobile

1. From the Shopify app, tap the icon .
2. Tap the order that you want to return.
3. Tap , and then tap Return.
4. In the Select quantity to return section, enter the quantity of items that you want to return
5. In the Return reason, select a return reason.
6. Optional: To edit a restocking fee or a return shipping fee, complete the following steps:
   1. In the Summary section, tap Restocking fee or Return shipping.
   2. Enter a new restocking fee or return shipping.
   3. Tap Done.
   4. Optional: You can edit the restocking fee on an individual return item by tapping the restocking fee per line item.
7. Optional: To add exchange items to a return, complete the following steps:
   1. In the Exchange items section, tap Add products.
   2. Select the exchange items, and then tap Done.
   3. Optional: To apply a product discount to exchange items, complete the following steps:
      1. For the exchange item that you want to apply a discount for, tap the exchange item's price.
      2. Enter a discount type, discount value, and a reason for discount.
      3. Tap Done.
8. In the Return shipping options section, select one of the following options:
   • Select Create a return label in Shopify to create a return shipping label for your customer. This option is available only if your primary location and customer shipping address are both in the United States.
   • Select Upload a return label to upload an existing return shipping label for your customer. You can upload a PDF, PNG, or JPEG file for your return label or add a return label URL. You can also enter a Tracking number and Shipping carrier.
   • Select No shipping required to create a return without any return shipping information.
9. Tap Create return.

After you create a return and receive the items back from your customer, you can process the return.