What does this enable?
When a return is processed in Ingrid Returns — either after warehouse receipt or at another configured trigger point — a refund is automatically created in the merchant's Shopify store. The customer receives their money back without manual action in Shopify Admin.
Refund amounts are calculated by Ingrid Returns based on the returned items, applied discounts, return shipping costs, and any exchange costs.
What is it?
Shopify refunds is the functionality that posts calculated refund amounts back to Shopify after a return is processed. It produces a refund against the customer's original order, in their original payment method and currency.
Key capabilities:
Automatic refund creation in Shopify on return completion
Support for partial refunds at item level
Multi-currency support via Shopify Markets
Configurable trigger point per shop
Full refund breakdown stored in Ingrid Returns (items, shipping, exchange cost, return cost)
Use cases
Standard return with item refund
A customer returns one item from a two-item order. Ingrid Returns calculates the refund for that item including proportional discounts, then posts it to Shopify automatically.
Return with exchange cost deduction
A customer returns an item and exchanges for another. The refund is net of the exchange cost. The amount posted to Shopify reflects the deduction; the breakdown is stored in Ingrid Returns for reconciliation.
Multi-currency merchant (Shopify Markets)
A merchant sells in SEK (shop currency) and EUR (customer currency). The refund posted to Shopify uses the customer-facing EUR amount, ensuring the correct amount appears on the customer's statement.
Return shipping fee charged
If a return shipping fee applies, it is deducted from the refund amount before posting to Shopify. The breakdown distinguishes items refund, shipping refund, return cost, and exchange cost.
Refund trigger point
Refunds can be issued at one of four trigger points, configurable per shop:
Immediate — refund issued as soon as the return is initiated
Shipment in transit — refund issued when the parcel is in transit to the warehouse
Arrived at warehouse — refund issued when the parcel arrives at the warehouse
Approved by warehouse — refund issued after warehouse approval (default)
The choice depends on how much risk the merchant is willing to absorb on returns that may not arrive or pass inspection. The active refund implementation and trigger point are set during shop onboarding by Ingrid — to change them on an existing shop, contact Ingrid.
For setup steps and the full Shopify settings reference (including refund implementation options), see the Shopify Configuration Guide.
Implementation examples
Example 1: Standard single-item return
Scenario: A customer returns one jacket (£85 value) from a two-item order. No return fee applies.
Flow:
The warehouse staff report the jacket received and approved in Ingrid Returns.
Ingrid Returns calculates the refund: £85 items, £0 return cost, £0 exchange cost.
The refund is created in Shopify against the original order.
Shopify issues the £85 refund to the customer's original payment method.
Result: The customer receives £85. Shopify Admin shows the refund under the order.
Example 2: Partial return with exchange cost
Scenario: A customer returns two items (€80 total) and exchanges one for a different size. Exchange cost is €5. Return shipping fee is €3.
Flow:
The warehouse staff report both items received and approved.
Ingrid Returns calculates: €80 items − €5 exchange cost − €3 return fee = €72 net refund.
The refund is created in Shopify and the return is closed.
Result: The customer receives €72 in their original payment method.
Example 3: Multi-currency return
Scenario: Shop base currency is SEK. A customer purchased in EUR via Shopify Markets. Item price: SEK 650 / EUR 58.
Flow:
The order is imported with both SEK and EUR amounts on the line item.
The refund is calculated in EUR (customer currency).
The refund posted to Shopify is €58 — matching what the customer originally paid.
Result: The customer receives the correct amount in their currency.
Additional notes
Exchanges and refunds share the same transaction record in Ingrid Returns. The exchange cost appears as a deduction within the refund.
Refund trigger point can be reviewed and adjusted at any time by contacting Ingrid.