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How to Handle Shopify Returns

A good returns process builds customer trust and can turn a negative experience into a positive one. This guide covers policies, processing, and strategies to reduce returns.

Flex Commerce Team
Updated February 2024

Returns Overview

Returns are an inevitable part of ecommerce. In the UK, consumers have a legal right to return online purchases within 14 days under the Consumer Contracts Regulations. Beyond legal requirements, a generous return policy can increase conversion rates.

Shopify provides built-in tools for handling returns and refunds, with additional apps available for more advanced self-service returns portals.

UK Returns Law

  • 14-day cooling off period for distance selling (online purchases)
  • 14 days to return after notifying you of the return
  • 14 days to refund after receiving the returned goods
  • Exceptions apply for personalised, perishable, or sealed hygiene products

Return Policy

Your return policy should be clear, easy to find, and ideally more generous than the legal minimum. A good policy builds confidence and can increase conversion rates.

What to Include

  • Timeframe: How long customers have to return (30 days is common)
  • Condition: What condition items must be in (unworn, tags attached, etc.)
  • Process: How to initiate a return (contact form, portal, email)
  • Shipping: Who pays for return shipping (you or the customer)
  • Refund method: Original payment method, store credit, or exchange
  • Exceptions: Items that cannot be returned (sale items, underwear, etc.)

Policy Placement

Add your return policy as a page in Shopify (Online Store → Pages). Link to it from your footer, product pages, and checkout. Many stores also include a summary in the FAQ.

Processing Returns

Shopify has built-in returns management under Orders. You can create return labels, track return shipments, and manage the entire process from one place.

Creating a Return

  1. 1
    Find the Order

    Go to Orders and search for the customer's order using order number, name, or email.

  2. 2
    Click Return Items

    Click the "Return items" button in the order details page.

  3. 3
    Select Items

    Choose which items are being returned and enter a reason if applicable.

  4. 4
    Create Return Shipping

    Choose to create a return label (if using Shopify Shipping) or provide manual return instructions.

  5. 5
    Send Return Email

    Shopify sends the customer an email with return instructions and any return labels.

Issuing Refunds

Once you receive the returned items and verify their condition, you can issue a refund through Shopify.

Refund Options

Full Refund

Refund the entire order including shipping. Use when the return is due to your error or a faulty product.

Partial Refund

Refund only the returned items. You can also deduct return shipping costs if your policy allows.

Store Credit

Issue store credit instead of a refund. This keeps the money in your business and encourages future purchases.

Refund Processing

  • Click Refund: In the order, click "Refund" and select the items and amounts
  • Choose refund destination: Original payment method or store credit
  • Restock items: Check "Restock items" to add inventory back to your stock
  • Send notification: Shopify emails the customer confirming the refund

Refund Timing

Refunds to credit/debit cards typically take 5-10 business days to appear in the customer's account. Set expectations in your refund confirmation email.

Return Apps

For high-volume stores or those wanting a self-service returns portal, dedicated returns apps provide a better experience than manual processing.

Loop Returns

Enterprise-grade returns platform. Encourages exchanges over refunds with bonus credit offers. Includes analytics and automation rules.

AfterShip Returns

Self-service returns portal with automated approval rules. Integrates with AfterShip tracking for a complete post-purchase solution.

Returnly

Offers instant store credit before the return is received. Customers can shop immediately while returning. Now part of Affirm.

Return Prime

Budget-friendly option with self-service portal, automated emails, and prepaid label generation. Good for growing stores.

Reducing Returns

The best return is the one that never happens. Invest in reducing returns to protect margins and improve customer satisfaction.

Return Prevention Strategies

  • Detailed product descriptions: Include all specifications, materials, and care instructions
  • Multiple product images: Show products from all angles, in use, and in context
  • Size guides: Provide detailed measurements, not just S/M/L
  • Customer reviews: Real feedback helps set accurate expectations
  • Video content: Product videos reduce uncertainty about look and feel
  • Quality packaging: Prevent damage-related returns with proper packaging
20-30%
Average ecommerce return rate
50-60%
Fashion industry return rate
22%
Returns due to inaccurate descriptions

Best Practices

Follow these best practices to create a returns process that protects your business while keeping customers happy.

Returns Tips

  • Respond quickly: Acknowledge return requests within 24 hours
  • Be generous: A liberal return policy increases conversion and trust
  • Track reasons: Analyse why items are returned to fix underlying issues
  • Offer exchanges: Encourage size/colour exchanges instead of refunds
  • Follow up: After resolving a return, ask for feedback on the experience

Need Returns Process Help?

Our team can set up self-service returns portals, integrate returns apps, and optimise your returns process to reduce costs and improve customer satisfaction.