Every return ends one of three ways: a refund, an exchange, or store credit. Which one you offer decides how much of the sale you keep. Here's how to choose.
Three outcomes
A refund sends the money back, and the sale is gone. An exchange keeps the sale, and fixes the customer's problem. Store credit keeps the money in your store, and usually brings the customer back.
| Option | What it means |
|---|---|
| Refund | The sale is gone |
| Exchange | Sale kept, problem solved |
| Store credit | Money stays in your store |
Match the outcome to the reason
Start from the reason. Wrong size or color? Offer the exchange first. Changed their mind? Store credit is fair. Defective, damaged, or not as described? That's on you, so refund or replace it, and pay the return shipping.
- Wrong size or color: Exchange first
- Changed mind: Store credit
- Defective or damaged: Refund or replace
- Not as described: Refund
Make the better option easier
Make the option you prefer the easy one. Some stores add a small bonus to store credit, or offer free shipping on exchanges only. Whatever you choose, state it in your return policy, so nobody is surprised.
| Neutral | Nudged |
|---|---|
| Refund, exchange or credit: your choice | Free exchanges. Store credit gets a 10% bonus. Refunds available. |
Doing this at scale
ReturnSage makes this call on every return. It reads your policy, the order, and the customer's history, and recommends approve, exchange, store credit, deny, or escalate, with its reasoning and a draft reply. See ReturnSage.