Let customers return orders that were created as a replacement on a claim, as store credit.
Where to find it: Settings > Returns > Policies, under Advanced Settings.
What this is
When a customer files a package protection claim for a lost, stolen, or damaged shipment and the claim resolves with a reorder, Onward creates a replacement order. This setting controls whether the items in that order can subsequently be returned.
When enabled, those returns resolve as store credit only.
Considerations
Enabled — a customer whose original order never arrived can still return the replacement if it doesn't work out (for example, a fit issue). The store-credit-only resolution keeps the revenue in your store.
Disabled — replacement items show as ineligible in the portal. This closes the path where a claim resolution is converted into credit through a follow-on return.
For customers who repeatedly file claims and return the replacements, Customer Score is available as a condition on Exceptions — for example, routing low-score customers to manual review rather than disabling this setting for everyone.
Related settings
Allow returns of Exchanges and Shop Now orders — the same question for exchanges
Automatically approve returns — where a fraud-risk exception would apply