How To Create A Good Refund Policy On Shopify?


In the process of online shopping, it is very common to return goods and refund money because you can’t touch the real thing and need to travel long distances. Returns and refunds can improve the fault tolerance rate of customers buying goods. However, for merchants, the return and refund may cause losses in goods and logistics. Therefore, it is important to set up a refund and return policy that conforms to the store’s policies for e-commerce merchants.

What is a refund policy?

Both returns and refunds are the return actions of customers when there are unsatisfactory factors in the purchasing process. But the two have different forms and reasons. 

A return means that customers want to change the product to another one, maybe with a different size, color, etc. It usually happens when a customer chooses the wrong style, color, size, or other factors of a product. Sometimes, due to a system bug or storage issue, customers will get the wrong product.

A refund action means that customers want the paid money back and want to stop this trade. The reason for a refund action includes a product that is broken, lost, or damaged. Customers who do not want to wait for another period for a resold product may request refunds.

On Shopify, you can create a refund policy for your store. The return and refund policies can provide more safeguards for your customers. Keep reading, and you can learn about the necessity of creating a refund policy and how to create one on Shopify.

Why Is A Good Refund Policy Important?

The exchange system is a symbol of corporate integrity. Consumers will evaluate the integrity of enterprises through the perfection of the return system. Only by establishing a fair and standardized exchange system can we establish a good corporate image and attract more consumers.

Secondly, a good return policy can improve communication efficiency between enterprises and consumers. Most of the communication between consumers and merchants after a purchase is based on dissatisfaction with the goods. The exchange policy gives consumers the right to a second choice. It can not only protect the rights and interests of consumers but also reduce the time and energy for both sides to buck the passing.

To sum up, a good refund policy can improve customer loyalty and reduce benefit losses, inspiring many repeat purchases.

How To Create Your Refund Policy on Shopify?

Open an e-commerce store on Shopify, and you can define your return policy according to your situation. These policies mainly depend on the types of goods sold and the target customer groups. Some merchants can provide different return policies according to the types of goods or after-sales service.

Shopify Refund Policy

Generally speaking, Shopify’s refund policy is as follows:

1. Return goods without reason: As the name implies, consumers can return goods for a certain period without indicating the reason on the premise that the goods are maintained and used in good condition without damage.

2. Personalized goods: Because some goods need special customization in the production process, such as clothes and shoes, not all goods support the return service.

3. Customized goods: To prevent customers from returning goods after problems occur, it is a good choice to let the merchants formulate the return policy for customized goods.

4. Some commodities can be returned; for example, some special commodities may have certain quality problems, and individual commodities can also be returned or returned according to actual conditions.

Steps of Creating A Shopify Refund Policy 

As a seller, when a customer returns or replaces a product, you need to provide the relevant return policy. On Shopify, you can set the return and refund policy by following the steps:

1. In the Shopify management background, click Settings > Payment Settings.

2. Then, you can create personalized return policies under the “Refund and Cancellation of Orders” section. Here, you can set up different return and exchange rules, according to the types of goods and target customer groups.

3. Besides, if you are a cross-border e-commerce store, you should consider the global consumer return before the goods’ delivery. In this case, you need to set different return policies for customers in different regions to ensure that consumers can get timely treatment and solutions when they encounter problems.

4. Finally, in addition to setting the return policy on Shopify, you can also clearly remind consumers of matters needing attention on the homepage, add a description of the return policy in a prominent position, and stipulate the relevant after-sales service methods and processing time, so that consumers can have a more intuitive understanding and protection.

ParcelPanel Returns & Exchange Help You Create A Good Return Template

In ParcelPanel Returns, you can set up your refund and return policy according to your requests. A refund/return policy usually includes several sections. Such as the common steps, the refund period, refund rules for different kinds of products, etc. Here is a good return and refund policy template for your reference (see the demo, automatically created by ParcelPanel Returns).

Starting Online Returns 

  • Enter your email address and verification code to sign in.
  • Go to your order history, select the order and items you want to return or exchange and follow the instructions. It takes only 4 steps to complete the return request and submit it.
  • Once your request is approved, you will get email update notifications with shipping guidelines.

1. What items are returnable?

  • xx-day return policy, which means you have xx days after receiving your item to request a return.
  • unused and resellable items, or defective items.
  • In the original packaging with all the tags intact.
  • You’ll also need a receipt or proof of purchase.

2. What items and exceptions are non-refundable?

  • You cannot return certain types of items, like perishable goods (such as food, flowers, or plants), custom products (such as special orders or personalized items), and personal care goods (such as beauty products). We also do not accept returns for hazardous materials, flammable liquids, or gases. Please get in touch if you have questions or concerns about your specific item.
  • Gift cards.
  • Discounted items (if applicable).

3. Damage, loss, or theft issues

  • If the product is faulty, reach out to us within x days of the delivery date.
  • When the purchased product is lost or stolen, please collect evidence and contact us immediately.


The fastest way to ensure you get what you want is to return the item you have. We allow the exchange of purchased items for selectable variants. Once the exchange request is approved, we will ship the replacement to you.

Refund Solutions

  • Refund the original payment method.
  • Give your Shopify store credit.

How Soon Will I Get My Refund?

  • After processing your return, you will receive a refund notice from us, and it will take an additional x-y business day for the refund to be returned to your original payment method. The refund to the store credit is immediate.
  • If you are a VIP customer, the refund is executed immediately after the review and processing of the return request.
  • When more than xx business days have passed since we’ve approved your return, please contact us at [email protected].

Streamlining Your Return Process

ParcelPanel Returns can also help you automatically generate the steps and detailed questions for returning goods. The following customer return application with strong applicability is automatically generated. If you need more types of policies and other return and exchange functions, check ParcelPanel Returns for details.

1. Select The Returned Item

  • What would you like to return?
  • Return quantity (One item per request)
  • Reason (Required) 

2. Select Return Solution

  • Refund to the original payment method
  • Store discount
  • Replace with the same item
  • Choose a different item

3. Select A Return Method

  • Ship with a return label. (You will get a return label after we approve your request.)
  • You will ship on your own. (Ship with any feasible carrier of your choice.)

4. Submit

  • Return the item, return solution, quantity, return reasons, ship methods, and total refund, and submit after you check all the above components.

Make returns and exchanges hassle-free to reduce costs

Customized refunds
Real-time status updates
Branded return portal
Prevent fraud

Tips for Creating Good Refund Policies

Make it visible

When creating refund policies, you should ensure the language is not too cumbersome. Try to use simple words and expressions. Unusual expressions or overly professional words can easily lead to misunderstandings among customers.

Keep it fresh

The refund policy usually includes information about the product. Therefore, it is necessary to update the policy in time, especially when the product is new, removed, or there is any change of store. If the refund policy is not updated in time, it will easily confuse consumers.

Always use positive words

The expression of language is an art. Positive vocabulary usually gives customers a sense of motivation and trust. Therefore, when writing the Undo Policy, we should pay attention to avoid using passive voice and negative words as much as possible.


Shopify’s return policy can make consumers feel more at ease when shopping in your store. Therefore, if you want to expand your e-commerce business, it is very important to set up a return policy that conforms to the hobbies, shopping psychology, and behavior of potential target customers in the market. 

I hope the above content can help you provide a convenient and comfortable shopping experience when you set up an online store on Shopify. Want to know more about return policy templates and suggestions? Visit the ParcelPanel page for more information!

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Abby Zeng

Content Manager

I’m deeply passionate about SEO and creating engaging content. My initial goal is to deliver high-quality, informative, and entertaining content that stands out in the digital landscape. By merging analytical insights with creativity, I aim to boost traffic for websites.

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