Let customers return exchanges and Shop Now orders as store credit.
Where to find it: Settings > Returns > Policies, under Advanced Settings.
What this is
When a customer exchanges an item or spends return credit through Shop Now, they receive a new order. This setting controls whether the items in that new order can be returned in turn.
Setting | Behavior |
Enabled | Returnable, resolving as store credit only |
Disabled | Shown as ineligible in the portal |
Store credit is the only resolution available either way — the original purchase has already been resolved once, so there's no clean payment method to refund to.
Considerations
Enabled — customers who exchanged and still have an issue (for example, the second size also didn't fit) can resolve it through the portal. Because the resolution is store credit, the revenue is retained.
Disabled — prevents repeated exchange-and-return cycles. Each cycle involves a label, a fulfillment, and handling on the returned item.
If you disable it
Consider adding a line noting that exchange items are final sale to your website's return policy, or to your pre-submission return instructions.
Related settings
Allow returns of Replacement orders — the same question for claim replacements