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  • How to Set Up Returns and Refunds on Shopify Plus
ShopifySeptember 19, 2025

How to Set Up Returns and Refunds on Shopify Plus

By Alinga Admin

Want to simplify returns and refunds on Shopify Plus while meeting Australian Consumer Law (ACL) requirements? Here’s how you can do it:

  • Write a clear return policy: Include return eligibility, exclusions, the process, and refund timelines. Display it prominently on your store.
  • Set automated return rules: Define return windows (30–60 days), shipping costs, and GST handling. Label non-returnable items like swimwear or custom orders.
  • Streamline returns and refunds: Use Shopify tools to process returns, generate labels, and automate refunds.
  • Make it customer-friendly: Add a self-service return portal and send automated updates to keep customers informed.
  • Comply with Australian standards: Ensure your policies align with ACL, display prices in AUD, and use Australian formats.

These steps help you build trust, improve efficiency, and stay compliant. Read on for detailed instructions on setting up your returns and refunds system.

Step 1: Set Up Your Return Policy

Access Policy Settings

To get started, head to your Shopify Plus dashboard. Click on Settings and then select Legal. This is where you’ll find the settings for returns, terms, and privacy policies.

Create Your Return Policy

Write a clear and straightforward return policy that complies with Australian Consumer Law (ACL). Make sure it covers key details like the return window, item conditions, shipping responsibilities, refund methods, and any exclusions. Use simple, easy-to-understand language.

Policy Section Details to Include
Return Eligibility Items must be unused, with tags attached, and returned within 30–60 days with proof of purchase.
Excluded Items List items such as intimate apparel, sale items, or customised products that can’t be returned.
Return Process Outline steps for initiating a return, required documents, and shipping instructions.
Refund Timeline Detail processing times (3–5 business days), refund methods, and GST considerations.

Once your policy is complete, make sure it’s ready to be shared across your store.

Publish Your Policy on Your Store

Make your return policy easy to find by displaying it prominently throughout your store:

  • Footer Navigation: Add it to your footer menu via Online Store > Navigation.
  • Product Pages: Create a ‘Returns’ tab on product pages with key points and a link to the full policy.
  • Checkout Page: Include a policy acknowledgement checkbox and link during the checkout process.

Step 2: Configure Return Rules

Set Return Deadlines and Costs

Head to Settings > Returns in your Shopify Plus admin to adjust your return policies. Here’s a quick guide:

Setting Suggested Setup
Return Window 30–60 days from delivery
Processing Time 3–5 business days
Return Shipping Free returns or a flat rate of $9.95
Restocking Fee 0–15% for non-faulty items
GST Handling Automatically calculated on refunds

For a fair return cost structure, consider tiered pricing:

  • Orders over $150: Free returns
  • Orders between $50 and $149: Flat rate of $9.95
  • Orders under $50: Customer covers return postage

Enable automated updates for returns by navigating to Settings > Notifications > Return Updates. Then, identify non-returnable items to simplify your workflow.

Mark Non-Returnable Items

It’s important to clearly label items that can’t be returned to set customer expectations and safeguard your business. Follow these steps:

  1. Go to Products > All Products.
  2. Select the items you want to mark as non-returnable.
  3. Use the return eligibility setting to mark them as “Not eligible for return”.

Add return status labels to product pages with these examples:

Product Category Return Status Reason
Swimwear Non-returnable Hygiene concerns
Sale Items Final sale Discounted pricing
Custom Orders Non-returnable Personalised items
Perishables Non-returnable Food safety regulations

After marking non-returnable items in your admin, update product templates under Online Store > Themes > Customize > Product Pages to display these labels. Configure your return rules to automatically flag these items during the return process, and set up automated messaging via Settings > Returns > Customer Communications.

Step 3: Process Returns and Refunds

Handle Manual Returns

To process return requests, log in to your Shopify Plus admin panel. Go to Orders > Returns to view all pending requests. For each return:

  • Check the return reason and review any attached photos.
  • Use the Create Return Label option to generate and email a return shipping label.
  • Monitor the return status through the Returns Dashboard.

You can customise return labels to include your business details. Here’s what to include:

Label Element Details
Return Address Your warehouse location
Tracking Method Australia Post eParcel
Label Format A4 thermal printing
Insurance Value Original order value

To save time, consider automating parts of this process.

Set Up Automated Returns

Automation can help speed up returns and reduce manual work. Using Shopify Flow, you can create workflows to simplify the process:

  • Automatically approve return requests based on your set criteria.
  • Generate return labels as soon as a return is approved.
  • Trigger refunds once the return is received and confirmed.

These workflows help your team work faster while improving the customer experience.

Give Refunds

Refunds can be processed directly in Shopify Plus, keeping in line with Australian Consumer Law. To issue a refund:

  1. Go to Orders, select the relevant order, and click Refund.
  2. Adjust GST, if necessary, and apply any return shipping costs.
  3. Document the refund reason and include approval steps for high-value orders.

Enable automatic refund notifications via Settings > Notifications > Customer Emails to keep customers updated on their refund status.

This process ensures refunds are handled efficiently and keeps interactions transparent for your customers.

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Step 4: Make Returns Easy for Customers

Once you’ve automated returns and refunds, the next step is improving how customers interact with the process. This is where dedicated tools come in handy.

Create a Customer Return Portal

A self-service return portal can make things much simpler for your customers. By adding a dedicated returns section to your Shopify Plus store, you allow customers to initiate and manage returns without needing extra help. Place a clearly visible Returns button in your navigation menu and order confirmation emails to make the process straightforward.

Once the portal is in place, keeping customers informed becomes the next priority.

Provide Return Updates

Keeping customers in the loop during the return process builds trust and improves their overall experience. Automate updates for each stage – when the return is initiated, while it’s being processed, and once the refund or credit is completed. Make sure these notifications match your Shopify Plus store’s design to maintain a consistent brand feel and encourage future purchases.

Australian Business Guidelines

Once you’ve simplified your returns process, make sure it fully aligns with Australian Business Guidelines.

Follow Consumer Law Rules

Your Shopify Plus store must comply with Australian Consumer Law (ACL). Clearly outline consumer rights and guarantees as required by the ACL – these cannot be excluded or altered.

  • Consumer Guarantees: Products should be of acceptable quality, match their description, and serve the purpose they are sold for.
  • Return Time Frames: Allow a reasonable time for customers to inspect products. Set return windows based on the product type and consider delivery times, especially for regional areas.
  • Refund Policies: Offer full refunds for major product failures. For minor issues, provide options such as repair, replacement, or a refund. Refunds should be processed using the original payment method.

Once these steps are in place, update your store settings to meet Australian standards.

Use Australian Formats

Configure your store to reflect local standards for better clarity and compliance.

  • Currency: Display prices in AUD, include GST, and format as $X,XXX.XX.
  • Date and Time: Use the DD/MM/YYYY date format, 24-hour time, and ensure Australian time zones (AEST/AEDT) are considered.
  • Documentation: Use Australian English spelling and format shipping addresses according to Australia Post guidelines.

These adjustments ensure your store operates smoothly within the Australian market.

Conclusion

Setting up effective returns and refunds on Shopify Plus requires a focus on ACL compliance and careful configuration. These steps lay the groundwork for bringing in expert help when necessary.

For professional assistance, Alinga‘s Shopify Plus specialists, based on the Gold Coast, offer tailored solutions that meet Australian consumer protection laws while streamlining operations. Their services include:

  • Setting up automated returns processing
  • Creating user-friendly return portals
  • Configuring GST-compliant refund systems
  • Ensuring adherence to ACL requirements

When done right, these features provide a smooth and compliant experience for both businesses and customers. A well-organised returns process helps foster trust and loyalty through clear policies and straightforward handling.

Whether you’re just starting out or improving your store, aligning your returns process with Australian standards is crucial. Keep your policies clear, your processes simple, and your communication open to ensure long-term success in eCommerce.

Are you ready to elevate your online business to the next level? With automation, easy customisation, and multi-channel adaptability, Alinga’s Shopify Plus integration will help grow your e-commerce business. Our team of experts ensures that your setup is smooth future-ready, and fits every requirement. Let’s explore how Alinga can transform your Shopify platform into an effective sales tool, get in touch with us right away!

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