ECommerce is different from brick and mortar retail – and that is both a blessing and a curse. One major perk is that customers don’t have to live near the eCommerce shop to purchase. One downside is that customers don’t live near the eCommerce shop when there’s an issue with their product. That’s why Fyresite has broken down our favorite new Shopify feature – Shopify exchanges.

The Basics of Exchanges

Shopify Exchanges function in much the same way that traditional store exchanges do. Your customer wants to exchange an item they purchased for either another of the same item or for another item you sell.

All returns with exchanges are processed through the Shopify Admin. When you go to add an exchange to a return, it will tell you the expected financial result.

Creating and Processing an Exchange

Exchanges are created by making a return and adding exchange items.

To create an exchange, go into your Shopify Admin. You’ll go into orders, where you’ll see returns and exchanges. You then will set up a return, and select add exchange items, and then add products. You will then select a shipping option and create the return.

To process an exchange, you need to inspect the items you receive. If they are in acceptable condition, restock and then fulfill the exchange through your Shopify Admin.

Closing an Exchange

An exchange is automatically closed when all the items have been restocked and any necessary refunds have been given. You can also close an exchange out by completing all relevant tasks.

Common Considerations for Exchanges

When using exchanges for your Shopify store, you need to consider the following.

Store Policy

While this may sound obvious, it’s important that you clearly list out whether or not you accept exchanges. If you do decide to allow exchanges, update your written return and refund policy to inform your customers.

Flow of Funds

Depending on the value of the products being exchanged, there are a few different outcomes.

Exchange Item is More Expensive Than Original Item

When the exchange item is more expensive than the original item, the money is applied from the original purchase and applied to the new one, leaving a balance as the customer’s responsibility.

Exchange Item is Less Expensive Than Original Item

When the exchange item is cheaper than the original item, the money is applied to the original item, leaving a surplus of money. It is then up to the merchant to refund the excess money back to the customer.

Equal Exchange

In the event of an exchange where both items are of equal value (or are the same item), the money is applied from the original item to the new one, and there is no further action needed on either part.

Shopify Exchanges Rules

There are a few Shopify-specific rules for these exchanges. These include that custom items can’t be added for exchanges, can’t be requested in self-service returns. Exchanges also can’t have exchange specific rules.

When you’re approving a return request, you can’t add exchange items. If the return request has a note requesting an exchange, you must cancel the request and create a new one with exchanges.

Want Shopify?

Exchanges are just the tip of the iceberg when it comes to amazing Shopify features. To take advantage of all of the amazing features offered, reach out to Fyresite or use our affiliate link to start your Shopify journey today!