Set Up Refund and Exchange Methods

Overview

A smooth returns process plays a major role in determining customer satisfaction and loyalty. When customers know that they can get their money back just as easily as they spend it, they’ll shop more confidently and spend more. Offering customers the right mix of methods to resolve their return requests paves the way for increased customer lifetime value and a positive returns experience.

AfterShip Returns offers your customers multiple methods to resolve their return requests and makes it easier for you to process refunds, exchanges, and store credits without the headaches. Return resolutions can be configured in your AfterShip Returns admin under ** Refunds and exchanges **.

What you’ll learn

In this tutorial, we will show you:

• Return resolutions set up

• Exchange order processing

• Customer experience

Return resolutions set up

1. Go to Refunds and exchanges under Return policy in the AfterShip Returns admin
2. AfterShip Returns supports 5 resolution methods and settings that, when selected, will be displayed on your returns portal for customers to select when they submit a return request

a. Refund resolutions
b. Replace with the same time resolution
c. Exchange resolutions
d. Exchange order processing rules on your eCommerce platform
e. Condition-based resolutions

1. Refund resolutions

Under the refund resolutions, you can set up and provide two methods of refund for customers who want to return the item and want a refund in return.

A. Refund to original payment method

The refund will be issued to the same payment method the customer opted for when placing the original order.

1. Shift the toggle to the right to activate the resolution method.
2. Click Edit to customize the customer-facing text and title that will be displayed on the branded returns page when the customer is submitting a return request.
3. Choose your refund priority for orders paid with multiple methods like gift card and credit card.

• Select payment method from the supported options and save the changes.

a. Gift card: Choose this if you want refunds to go back to the gift card first.
b. Credit card: Choose this if you prefer refunds to go to the credit card first.

B. Refund to store credit

Refund will be issued as a gift voucher, credit points, or promo code for returns that are ineligible for a cash refund and can only be redeemed to buy something from the store.

1. Shift the toggle to the right to activate the resolution method.
2. Click Edit to customize the display text and store credit processing settings.

• Edit the customer-facing text and title that will be displayed on the branded returns page when the customer is submitting return request as per your requirement.

• Select how the store credit will be issued to the customer. Currently, for WooCommerce, Shopify, and BigCommerce, the store credit will be issued as gift cards.

• If you wish to further enhance the store credit management process for your Shopify store, you can integrate your AfterShip Returns account with third-party apps like Rise.ai to set up a workflow on Rise.ai to automatically issue store credit to customers when a Return Merchandise Authorization (RMA) is processed for a refund to store credit on AfterShip Returns. ** Learn more> **

3. Activate Store credit incentive to encourage customers to opt for store credit instead of requesting a refund by rewarding them with bonus credits. ** Learn more> **

2. Replace with the same item resolution

AfterShip Returns’ Replace with the same item resolution option enables you to provide customers the option to return their original item in exchange for the same-priced or differently-priced variants.

Additionally, you have the option to impose exchange variant price restrictions and set up checkout methods to charge for exchange orders, including the cost of return and exchange shipping via the AfterShip Returns platform.

Learn more about replacing with the same item resolution method in this complete guide.

3. Exchange for other items resolution

AfterShip Returns’ Replace with the same item resolution option enables you to leverage your existing Shopify collections to encourage customers to opt for exchanges instead of returns by incentivizing them with bonus credits and pre-discount applications.

• You can either direct your customers to your store’s website or keep them on the AfterShip branded returns page, allowing them to use their return credit to make a new purchase in exchange for the product they want to return.

• You can configure and manage Stripe and Shopify checkout methods to charge customers for any price difference if they choose an exchange item of greater value than the original item, as well as for the cost of return and exchange shipping (if applicable).

• Apply pre-discount on exchange orders to allow customers to use the discount amount from the original purchase to reduce the price of the exchanged item. This discount is applied before calculating any additional costs, such as the price difference or taxes, on the new item.

Learn more about the exchange for other items resolution method in this complete guide.

4. Exchange order processing rules on your eCommerce platform

The section allows you to set up three distinctive settings.

A. Shopify exchange order processing

The feature allows you to set up rules around the exchange orders created via AfterShip Returns and how they will be handled and displayed on your eCommerce.

The full-value exchange order process for Shopify provides a streamlined method for handling exchanges, except in the cases where Shopify checkout is used, which creates the exchange order after the payment.

This process includes a discount code, AfterShip Returns discount, to simplify tax reporting and reconciliation for all exchange scenarios. This applies to all exchange orders, whether replacing the same item or exchanging for a different one.

The process offers two discount options:

• Discount On Flow, which applies the return item value along with pre-discount value and extra credit.
• Discount Off Flow, which only applies for pre-discounts or extra credit. The Discount On Flow should be avoided if your products include tax due to Shopify's accounting limitations.

Configuration involves enabling the relevant discount setting in the Return Policy section under Exchange order processing settings.
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For detailed instructions, refer to the configuration guide.

B. Shopify exchange order prefix

Customize a prefix for new exchange orders on Shopify for easy identification and management. For detailed instructions, refer to the configuration guide

C. Minimum inventory

Set up a minimum inventory level for exchange items to make inventory management more efficient and ensure buyers a seamless return experience. For detailed instructions, refer to the configuration guide

D. Instant exchange

Enable customers to get their exchange items sent immediately when submitting a return request. This section requires to you set up a hold amount and the period within which customers are required to send their items back to avoid the full charge. ** Read this article to know more **.

5. Condition-based resolutions

Limit which refund and exchange options are available to customers based on the order or product. ** Learn more **

Customer experience

Supported platforms

• Refund to store credit is supported for Shopify, WooCommerce, and BigCommerce. Refund prioritization is available for Shopify users only.
• **Replace with the same item **exchange resolution is available across multiple platform users based on the settings configured.

• **Exchange for other items ** resolution is supported for Shopify, WooCommerce, and Salesforce Commerce Cloud.
• Shopify exchange order processing rules is available for Shopify users only.
• New order exchange order prefix customization is available for Shopify users only.
• Minimum inventory level configuration is available for Shopify and BigCommerce users.
• Instant exchanges are supported based on the resolution method.

• Condition-based resolutions are supported across multiple platform users based on the conditions used.

For any further questions or help, please contact our chat support team or reach out to us at support+returns@aftership.com.

Updated on: 15/04/2025