When a customer submits a return, they need a way to be compensated. Onward Returns gives you four resolution options to offer your customers. This article explains each one and how to configure them.
Navigate to Returns > Settings and find the Return Outcomes section.
Store Credit
Store credit is always available as a resolution option and cannot be disabled. When a customer chooses store credit, a Shopify gift card is created and emailed to them. They can use it on future purchases in your store.
Store Credit Bonus
Want to incentivize customers to choose store credit over a refund? You can offer a bonus — extra credit on top of their return value.
Bonus types:
Percentage — A percentage of the return item value (e.g., 10% bonus on a $50 return = $5 extra, so the customer gets $55 in store credit).
Fixed amount per item — A flat bonus amount for each item returned.
Fixed amount per return — A flat bonus amount applied once per return, regardless of how many items.
To set it up:
Under Store Credit, select a bonus type from the dropdown.
Enter the bonus percentage or amount.
Save your settings.
Leave the bonus type as "None" if you don't want to offer a bonus.
Refunds
When enabled, customers can choose to receive a refund back to their original payment method through Shopify.
Toggle Refunds on or off under Return Outcomes.
Refunds are processed when the return is completed (either manually by you or via auto-process automation).
Customers should see funds in their account within 3-5 business days after processing.
Note: Refunds are not available for gift returns — gift return recipients can only receive store credit or exchanges.
Exchanges
When enabled, customers can swap a returned item for a different variant (size, color, etc.) of the same product during the return process.
Toggle Exchanges on or off under Return Outcomes.
During the return flow, the customer will be prompted to choose a new variant after selecting their return reason.
If the product only has one variant (no size/color options), the exchange step is skipped automatically.
Any remaining balance (if the exchange item costs less than the returned item) is handled via the customer's chosen resolution preference (refund or store credit).
How exchange orders work:
When the return is processed, Onward creates a new Shopify order for the exchange item.
The exchange order is fulfilled through your normal Shopify fulfillment process.
You can view exchange order status directly on the return detail page.
Note: Exchanges require Shopify. If the selected variant is out of stock, the customer will be notified and asked to choose a different option or proceed with a refund/store credit instead.
Shop Now
Shop Now takes exchanges a step further — instead of being limited to variants of the same product, customers can browse your entire product catalog and shop for anything in your store using their return credit.
How Shop Now Works for Customers
After selecting their return items, the customer is invited to "Shop Now" with their return credit.
They're taken to a branded shopping experience showing your product collections.
They can browse products, select variants, and add items to a cart.
Their available return credit is displayed prominently — including any Shop Now bonus.
If the new items cost more than their credit, they pay the difference.
If the new items cost less than their credit, the remainder is issued as their chosen resolution (refund or store credit).
If they change their mind, they can skip Shop Now and proceed with a regular refund or store credit.
Enabling Shop Now
Toggle Shop Now on under Return Outcomes.
Optionally configure a Shop Now Bonus to incentivize customers to shop:
Percentage — Bonus as a percentage of the Shop Now item value.
Fixed amount per item — Flat bonus per item the customer shops for.
Fixed amount per return — Flat bonus per return.
Shop Now Bonus vs. Store Credit Bonus
Both bonuses incentivize customers to keep revenue in your store, but they apply to different resolutions:
Bonus Type | When It Applies |
Store Credit Bonus | Customer chooses store credit (gift card) |
Shop Now Bonus | Customer uses Shop Now to buy new items |
You can configure both bonuses independently — for example, offer a 10% store credit bonus and a 15% Shop Now bonus to encourage customers to shop.
Resolution Preference Flow
Here's how the customer experience flows based on your enabled outcomes:
Customer selects items to return.
If Exchanges are enabled → customer is offered an exchange (for same-product variants).
If Shop Now is enabled → customer is offered to browse your catalog.
If customer doesn't exchange or shop → they choose between Store Credit and Refund (if both are enabled).
If only Store Credit is enabled → that's the default resolution.