Shopify Returns and Exchanges streamlines your returns and exchanges workflow in ShipStation, speeding up refunds and exchanges for your customers while minimizing the need for manual review.
For example, you can auto-approve refunds for items under a certain dollar amount or delay approval for high-value items. You decide which requests to automate based on product details, price, or return reasons.
There are two types of return automation:
Automation Rules can automatically approve refunds and exchanges for all products or for products within a specific price range based on the item’s first scan or final delivery.
Tag-Based Rules use order, product, customer, or discount tags to target a narrower set of requests while enabling a wider range of automated actions, such as blocking returns or offering alternative refund options.
This Feature is Part of Shopify Returns and Exchanges
In July 2025, ShipStation released Returns & Exchanges for Shopify. The contents of this article are related to that workflow.
For other selling channel types, please see our guides on Automation and Returns to enable a return flow for your customers.
Automation Rules automatically approve refunds or release exchange orders based on conditions you set. You can create rules for products at different price points and choose whether they apply to refunds, exchanges, or both.
Rules can run when items are in transit or after they are delivered. For example:
-
Approve refunds for items under $50 when tracking shows they’re on the way.
-
Release exchange orders when returned items are delivered.
Consider these options for automation rules in your workflow.
Automatic Approval When Package is Delivered
-
How it helps: As soon as the carrier reports that the return package has been delivered to your warehouse, ShipStation will automatically move the request past the Admin-approval step. No one on your team needs to click Approve. The refund or exchange will be triggered the moment a Delivered scan is received.
-
Best for: Brands that are comfortable issuing a refund once the parcel is physically at their facility and want to shorten turnaround time.
Refund or Exchange Approved When Carrier Scans Package
-
How it helps: ShipStation will automatically approve a request once the carrier performs the first acceptance scan (the package is In Transit). You’re effectively promising the shopper their refund or exchange as soon as the box enters the mail stream, and well before it reaches your warehouse.
-
Best for: Brands that want to offer an Amazon-like Instant Refund experience and are willing to take on the small risk of approving before the item is in hand.
Modify Rule
Once a rule is created, you can always edit, delete, or disable that rule later on.
To create a Returns automation rule:
-
Select Configure Returns Settings.
You will be redirected to a new returns management portal.
-
Select Automation Rules.
-
Select Add New Rule.
-
Enable the Activate toggle.
-
Create a Rule Name.
-
Select an Action from the dropdown.
-
Select Parameters. From here, you can select if the rule applies to returns, exchanges, or both.
-
Select Create Rule.
Tag-Based Rules automate returns exceptions using custom logic applied to specific orders, products, or customers. This automation helps you control the returns process and prevent unwanted returns, all without manual review. Learn more about order tags in ShipStation.
ShipStation can activate any of the following rules when it detects a relevant tag on the order, product, customer, or discount code. This helps you enforce your return policy consistently without needing constant manual oversight.
-
Block All Returns and Exchanges
-
Block Returns Only
-
Block Exchanges Only
-
Allow Customers to Keep Items
-
Offer Free Return Shipping
-
Disable Refund to Original Payment Method
For example, you can block returns and exchanges on final sale items or let customers keep the items and still be refunded for low-value products.
To create tag-based rules:
-
Select Configure Returns Settings.
You will be redirected to a new returns management portal.
-
Select Tag Based Return Rules.
-
Choose to enable, disable, or delete preset rules.
-
There are four default rules created for you:
-
Tag: Service_blocked will Block Returns & Exchanges
-
Tag: NO_RETURN will Block Returns
-
Tag: NO_EXCHANGE will Block Exchanges
-
Tag: KEEP_ITEMS will Keep Items
-
-
Optional: To create a new rule, select Create New Rule.
-
Select an Action from the actions dropdown. The action options are:
-
Block Returns and Exchanges
-
Block Returns
-
Block Exchanges
-
Keep Items
-
Offer Free Shipping
-
Block Refund to Original Payment Source
-
-
Select the tag type from the Tag Type dropdown.
-
Type the name or tag you would like to use for this rule.
-
Select Create Rule.