What is the best way to go about issuing a refund in the form of store credit to a customer when they return an item?
Discount Codes - not really an option because customers should be able to track their balance and potentially split that balance over several orders. Discount codes as far as I'm aware don't allow this. Plus they are not linked to a specific customer account.
Gift Cards - Requires an upgraded Shopify plan for what surely is basic and essential functionality? Otherwise, this works in so far as a customer can track their balance, but I don't think it addresses the scenario below?
1. Customer purchases a coat for £50 + £5 shipping. It's on sale so only a refund for store credit is permitted.
2. A partial refund of £5 is issued as a refund for their postage. The remaining £50 is retained by the merchant.
3. Merchant creates a Gift Card loaded with £50 credit for the customer. The customer spends this credit on another coat which also costs £50.
Unless I'm missing something, Shopify will report 2 sales in this scenario - the unrefunded but returned first order, as well as the second order paid for with store credit. For accounting purposes, this should be one sales event, but it will be logged as two in the system.
I would appreciate some input on this.
`Thanks in advance.
Hi there Ciaran!
Don here from Shopify!
Thanks for outlining your issue here so clearly on our merchant forums. :)
There could definitely be some increased functionality around this, so I'll be filing a feature request for you from here to see if we can make this work better in future.
The first thing I wanted to check out with you in regards to this is whether the order was made in person or online?
If in-person, it's actually possible to refund to store credit on our POS for iOS; though I presume from your post here that it was an online transaction and not in-person?
For online orders, it's not currently possible to refund to store credit, so I'll file a request for that with our developer team to see if it will be possible to add this functionality in a future build of the platform.
In terms of gift cards, there is one app out there that will support gift card use on any Shopify plan level. Check out Gift Wizard and see if you want to pick that up for your store.
There would still be an effect on your reporting from using this workaround as you suspect, so we recognise that this is less-than-ideal.
Hope this at least clarifies the situation even if there wasn't a lot of good news to share today. :)
Thanks again for sharing your detailed feedback, we rely on candid info like this from our merchants to continually improve the platform so it's appreciated.
This is for online orders.
I've done some digging and found threads dating back as far as 2015 that raise this same issue and receive the same response.
Thank you for passing this on to the developers. It's a major omission for an e-commerce platform. Still, I will not be holding my breath.
If you're still monitoring this post that link to the refund to store credit doesn't actually show a refund to store credit, it shows a cash (credit card) refund. Is there any info on how store credit works in terms of the return and then when the customer wants to use their credit?