Returns are an inevitable part of running an online store, and how you handle returns can make a big difference to your business. When done right, even a return can become an opportunity to build customer trust and loyalty. Done poorly, returns can hurt your profits and reputation.
In this article, we’ll cover everything you need to know about managing returns on Shopify – what returns management in Shopify, why it’s important, the basic process on store, best practices, and how the right tools can help.
We'll also show how Mipler Shopify Reports and analytics can make the whole returns process easier and more insightful for you.
What Is Returns Management
Returns management is the process of handling product returns from start to finish – from the moment a customer requests a return until the item is back in your stock and the customer is refunded or has a replacement. In practice, it includes having a clear return policy, managing the return in your Shopify admin (processing the refund or exchange), and restocking the product into inventory.
Why a Good Returns Management Strategy on Shopify Is Important
A good returns management strategy on Shopify matters because it:
- Builds customer trust and loyalty: Shoppers are more likely to buy (and buy again) if they know returns are easy and fair.
- Recovers revenue: A good returns process lets you save sales via exchanges or store credits instead of losing customers entirely.
- Provides valuable feedback: Analyzing returns (for example, using Shopify Custom Reports) can reveal product issues or customer pain points. You can use those insights to improve products and descriptions, reducing future returns.
Returns Management Process on Shopify
Managing returns on Shopify involves several key steps. Let’s break down the process from start to finish.
How to do Returns on Shopify
- Initiate the return: In your Shopify admin, go to the order and click "Return". Select the items and quantity being returned, click “Create Return”. Then choose Shipping service and to which warehouse it should be shipped.
- Give return shipping info: Provide the customer instructions for sending the product back. If possible, use Shopify to email them a return shipping label, it is mostly available by Shopify Shipping in some regions.
- Receive and restock: Once you get the item back, mark the return as received in Shopify to not get lost in the item flow. If it's in sellable condition, restock it to update your inventory (so your Shopify Inventory Reports stay accurate). If not, note it as damaged and don't restock.
- Refund or exchange: Issue the refund to the customer’s original payment method, or deliver a replacement item if you agreed to an exchange due to your site policy.
How to Handle Returns on Shopify
Beyond the platform steps, how you handle returns on Shopify is more about customer service and efficiency. Aim to make the process as easy as possible: have a clear return policy, keep customers updated at each step, process refunds promptly, track return reasons to spot patterns.
These steps will help you remain loyal to your customers by providing great service and even if they return your items they might come back because of how you treat them.
Returns Management Best Practices
Here are some best practices to manage returns effectively on Shopify:
- Write a clear return policy: Make sure your return policy is easy to find and understand on your site. It should state what is acceptable for return, the time window when they make it and whether you offer refunds or exchanges. If you're unsure how to add return policy on Shopify, go to your Shopify admin Settings > Policies to create one.
- Make returns easy: Provide prepaid return labels if possible, or give simple email instructions with how to return items to your warehouse. You might even use a specific app or portal so customers can initiate a return online without needing to email support or make return by phone calls.
- Keep customers informed: Notify customers at each stage of the return and let them know when you approve the return, when the item is received, and when the refund is issued. Keeping them in the flow shows good service and builds trust even after they return your products.
- Learn and adapt: Treat returns as feedback and track why customers return items and look for specific patterns. If many people say an item “runs small,” adjust its description or sizing info. Use an analytics tool like Mipler to report on average returning customer rate in Shopify and reasons so you can spot trends. The best Shopify returns app or system helps you not just process returns, but learn from them, allowing you to make decisions that reduce future returns.
How to Choose the Best Shopify Returns Management Software
When evaluating returns management software (sometimes called a Shopify returns manager app), consider your needs: a self-service return portal for customers, automated return labels, exchange handling, etc. Also think about analytics (does it help you track and understand returns?), integration with Shopify (will it update orders and inventory automatically?), and cost.
The best Shopify returns app for your store is one that makes returns easy for customers and provides you useful insights. Often, you might use one app for handling the return process and another like Mipler for analyzing the return data.
