How to handle orders "Returned to sender"?

[Fanfi]

Hi there,

We quite often have orders that are "returned to sender" because, for example, customers have made an error with the address or have not picked up the parcel on time.

When this happens, we are marking the order as "Returned" in Shopify, by creating a return, with no shipping label, and restocking all the items in that order. Then we contact the customer and:

• if he decides a refund, we refund the order.
• if he decides a new shipment, then we duplicate the order, apply a 100% discount, and reship the order.

Until recently, it worked perfectly, and our sales reports and inventory were up-to-date because:

• refunded order products were restocked and refunded.
• reshipped order products were restocked (but not refunded) and then fulfilled again (in the duplicate order with 100% discount).
  
  

But recently, it seems that Shopify made some changes, and now deducts returned products from daily sales automatically, even if they are not refunded, and the order itself is marked with "refund owed", which in our case is not true 90% of the time, because we re-shipped the products for free to customers.

1. We don't understand the point of this recent change. Why deducting returned products from the sales when they are not refunded? Why considering those products as refund owed automatically? What the logic here?
2. Does anyone have a similar situation with a better way to handle "Returned to sender" orders?

[lindahlcorp]

I wish I had a good solution but sadly I don't, sorry. I'm following and will reply if I come up with something. I wish this situation was something that Shopify supported natively.