How are you handling exchanges when your 3PL doesn’t support Shopify Exchange API?

Shopify Discussion
1

Hi everyone, happy Monday!

Looking for advice from merchants managing higher return volumes with 3PLs.

We’re implementing a self-serve return portal (Frate), but our 3PL does not support Shopify’s Exchange API.

Here’s the issue:

When using Frate’s exchange flow:

  • Customer opts in for exchange instead of refund

  • The original order shows as “we owe customer money”

  • Frate creates a new $0 exchange order (let’s say it’s even amount with refund)

  • Our 3PL just sees the net new order (no exchange relationship, all good)

  • Financial reporting gets messy because refunds and $0 orders don’t net cleanly in standard reporting.

If you’re:

  • Using a 3PL that doesn’t support Shopify exchange API

  • Using a third-party returns portal

  • Processing size swaps / variant exchanges at scale

I’d love to understand how you’ve structured this operationally and financially. How are you keeping reporting clean (revenue, return rate, AOV, etc.)?

Just FYI, we’re unable to offer store credits due to other restrictions.

Appreciate any insight, this feels like one of those “simple in theory, messy in reality” Shopify edge cases.