Understanding how to handle returns on Shopify stores is a vital aspect of running an e-commerce business. In a perfect world, your customers will find the right product every time. When that doesn’t happen, having an efficient returns process set up with a well-defined return policy can make things easier for both you and your customers.
How To Set Up Returns on Shopify Stores

Shopify has built-in tools to help you manually handle returns yourself, but owners also have the option of integrating third-party apps for a smoother process. You can more efficiently manage returns on Shopify using these tips.
Set Up Return Settings in Your Shopify Store
Shopify allows you to configure return settings on its platform. Follow these steps to enable return and exchange features in your Shopify settings:
- Go to “Orders” in your Shopify admin dashboard.
- Click on the order you wish to process a return for.
- In the “More actions” dropdown menu, click on “Create a return”.
- Add the products to be returned, update quantities, and finalize the return.
- If the return is approved, select “Refund” to process the refund.
If you are using a third-party app to handle returns on Shopify, you will need to set up the return settings using the app. Some apps may even allow you to provide prepaid return labels to your customers. Shopify integrates with various shipping carriers, making it easy to generate and send return labels.
Shopify also has an automated returns feature that lets customers initiate returns directly from their order history in their account.
Process Returns Efficiently
Ensure you process any returns promptly and accurately according to your return policy to maintain customer satisfaction. When the returned items arrive, check their condition to ensure they meet your return policy criteria. If the items are in sellable condition and you plan to resell them, update your inventory to reflect the returned items.
If you set up your Shopify return policy well, it will provide a clear outline of how the process should play out.
Analyze Return Data
Shopify returns can provide you with valuable data. You should pay close attention to what items are returned and the reasons why. For example, in the fashion industry, customers have often cited defects and sizing issues as reasons they returned clothes.
Address these problems to identify opportunities to reduce Shopify returns. If defects are common, you may need to discuss things with your manufacturer; if sizing is a problem, consider using a Shopify sizing app like Kiwi to add size charts and help your customers find the right size the first time.
Communicate With Customers
Keep customers informed about the status of their return and refund through email notifications. Customers appreciate communication throughout this process, and good communication will make it as painless as possible for you and for them. Effective communication can actually build customer loyalty, because it shows how much you value their experience. You can also ask for feedback on your Shopify return processes to identify areas for improvement and enhance future customer experience.
Create a Strong Shopify Return Policy and Page

Store owners can set their own return policies, and while the platform does provide some guidance on creating one, it’s really up to you to decide how to handle returns on Shopify. A clear, comprehensive return policy should establish customer expectations and protect your business. Follow these steps to create your return policy page:
- Go to your Shopify Admin dashboard and click on “Settings” in the bottom left.
- Click on “Policies” under the Settings menu.
- Upload your own return policy or select Shopify’s default template and modify it for your business.
- Click “Save” after your Shopify return policy is ready.
- Add the return policy link to places like your store’s footer, in the checkout process, and in confirmation emails.
Keep in mind that, if you are a dropshipper with a supplier, your return policy may need to follow your supplier’s return policy.
Tips for Writing Your Shopify Return Policy
There are four main categories of information that you should include in your policy for Shopify returns. Remember that if you are a dropshipping business, these categories should follow your supplier’s policy.
1. State Your Timeframe for Returns
You need to state a return period for products. A commonly used period is 30 days from the date of purchase. Keep in mind that having too short a period may lead some customers to feel pressured. On the other hand, having a long return period could set you up for returns of outdated merchandise. Consider your products and customers to determine what a reasonable return timeframe may be.
2. Define Return Conditions
The conditions for returns refer to the condition of the product. For example, your Shopify store’s return policy should specify if you require the product to be unused or unopened. If you’re selling clothing, items may need to be returned unused and unwashed.
Return conditions will differ depending on the types of products you sell. Be sure to also specify if there are any items in your store that are an exception and cannot be returned, such as final sale items. You should also explain what the customer should do if they receive an item that is damaged or defective.
3. Clarify on Return Shipping Fees and Processes
If you are selling physical products and the customer will need to ship the item back to you, you should explain whether you will cover the return shipping costs or if it is the customer’s responsibility. In addition to return shipping fees, outline the following for your customers:
- Your store’s contact information for returns
- Return authorization process, if applicable
- Packaging instructions
- Shipping address (either yours or your supplier’s)
4. Explain if Returns Will Result in Refunds or Exchanges
Your Shopify return policy should specify whether you will issue refunds using the original payment method, store credit, or a product exchange. In addition, indicate how long it will take for the refund to be processed and for any funds to appear in the customer’s account.
Best Practices for Handling Returns on Shopify

In addition to a well-crafted return policy, implementing best practices can help you manage returns more efficiently and keep customers satisfied.
Make Returns Easy
Simplify your Shopify return processes as much as possible. A hassle-free return experience can increase customer trust and loyalty. Ensure your return policy is easy to find on your website, and provide clear instructions for returning items.
Offer Free Returns
Consider offering free returns to enhance the customer experience. While it may involve additional costs on your end, free returns can increase customer satisfaction and encourage repeat purchases.
Provide Store Credit
Offering store credit for returns can be a win-win situation. It allows customers to use their refund to purchase another item, keeping the revenue within your store and potentially increasing customer loyalty.
Why You Should Know How To Handle Returns on Shopify
Knowing how to handle Shopify returns helps you stay on top of your business. It requires a well-defined return policy, efficient processes, and effective communication with customers. By setting clear return conditions and utilizing Shopify’s built-in tools and third-party apps, you can manage returns smoothly and enhance customer satisfaction.
With our Kiwi sizing app, it’s easy for your customers to know exactly what clothing sizes you offer. This precision lets them predict how the clothes will fit, making the shopping process easier and reducing the need for returns. Reach out to us today to find out more about how Kiwi can make your e-commerce experience easier!