What is the Best Way to Handle Shopify Returns?

Smart Strategies to Boost Customer Trust, Reduce Costs, and Streamline Your eCommerce Operations

Returns are an inevitable part of running an online store. In fact, a Narvar study found that 41% of online shoppers buy with the intent to return some items. For Shopify store owners, mastering how to handle Shopify returns is not just about reducing costs-it's about increasing customer satisfaction, protecting your margins, and building long-term brand loyalty.

In this guide, we’ll dive into:

• Why returns matter to your bottom line

• Best practices for handling Shopify returns

• Automation tools and Shopify apps for return management

• Examples from real eCommerce brands

• Design and marketing tips to reduce returns

Let’s turn your returns policy into a competitive advantage.

Why Handling Shopify Returns Strategically Is Crucial

Poor return experiences can tank your reputation—and cost you repeat customers.

Key Stats:

• 95% of customers say a poor return experience would make them avoid shopping with a brand again (Narvar, 2023).

• eCommerce return rates range from 20% to 30%, especially for apparel and electronics (Statista, 2024).

• Brands that offer easy returns see up to 25% higher conversion rates and increased customer lifetime value (CLV).

Case Study – Zappos:
Zappos, an online shoe and clothing retailer, offers free 365-day returns. Despite higher return rates, their CLV is 5x the industry average, driven by trust and loyalty.

What Causes Most Shopify Returns?

Understanding the “why” behind returns can help reduce them.

Top reasons customers return items:

• Wrong size or fit (apparel-heavy stores)

• Product not as described

• Damaged or defective items

• Complicated or unclear return policies

📌 Pro Tip: Add size guides, user-generated content (UGC), and detailed descriptions to minimize mismatch issues.

How to Handle Shopify Returns: Best Practices

Here’s a step-by-step breakdown of handling returns on Shopify like a pro:

1. Create a Clear, Customer-Friendly Return Policy

Make it easy to understand:

• Use plain language

• Set expectations on timeframe (e.g., “Return within 30 days”)

• Outline what’s eligible for return/refund/exchange

• Include contact and return shipping instructions

📌 SEO Tip: Use keywords like "Handle Shopify Returns," "Shopify return policy," and "how to process returns on Shopify" in this section for better discoverability.

2. Automate the Returns Workflow

Shopify supports automation through apps like:

• Loop Returns

• Returnly (now Affirm)

• AfterShip Returns Center

• Rich Returns

These tools allow:

• Branded self-service portals

• Auto-generated return labels

• Exchange incentives

• Integrated analytics to track return reasons

3. Turn Returns Into Revenue Opportunities

Instead of just issuing refunds:

• Offer instant exchanges to retain the sale

• Use store credit instead of cash refunds (with customer consent)

• Upsell or cross-sell during the return process

🔍 Example – Fashion Nova:
Fashion Nova uses returns to pitch alternate styles or sizes with upsell options during the process. Their returns portal is optimized for conversions—not just refunds.

Design & UX Tips to Reduce Shopify Returns

Great store design reduces buyer confusion and expectations mismatch.

1. High-Quality Product Images & Videos

• Use 360-degree product views

• Show products in real-world use cases

• Use video try-ons for apparel (AR integrations available)

2. Incorporate User Reviews and UGC

• Feature verified buyer reviews with size, fit, and style notes

• Embed Instagram galleries or photo reviews to show authenticity

3. Live Chat & Support Widgets

• Proactively answer common questions (sizing, material, shipping times)

• Reduce pre-sale anxiety that leads to post-sale returns

Marketing Strategies to Manage & Reduce Shopify Returns

Marketing isn’t just about selling—it’s also about setting expectations.

1. Transparent Product Marketing

• Avoid overly-edited images or misleading titles

• Use copywriting that clarifies value, dimensions, and use cases

2. Email Marketing for Returns Management

• Send post-purchase emails with how-to guides and return instructions

• Automate exchange offers or restocking alerts

3. Retargeting Campaigns for Return Visitors

• Use Facebook/Google remarketing to show alternative items or exchange options

• Segment audiences who returned items for specific reasons

Shopify Apps to Streamline Returns (2025 Picks)

Here are the best-rated return apps for Shopify:

📌 Allbirds

Eco-friendly shoe brand Allbirds simplifies returns by offering free shipping, 30-day trials, and no-hassle exchanges. Their “no-questions-asked” policy builds strong brand equity.

📌 Gymshark

Gymshark offers a slick return portal, easy printable labels, and self-service for status tracking—reducing support team load by 40%.

ROI of a Strong Returns Strategy

Returns don’t have to be a cost center.

Impact of handling Shopify returns effectively:

• +35% repeat purchases when exchanges are offered

• -20% in support tickets with automated return portals

• +22% reduction in return rate with better size guides and product photos (Baymard Institute)

✅ Final Checklist to Handle Shopify Returns Effectively

• Display return policy on product pages and in the footer

• Use automation tools for speed and accuracy

• Offer exchanges and store credit proactively

• Leverage UGC and reviews for buyer trust

• Monitor return data to spot trends and take action