Configuring Refund and Exchange Fees in Exchange It

To begin, open the Exchange It app from your Shopify Apps menu. Then click the Settings link in the app’s navigation. This will take you to the App Settings page, where the Refund Fee (also called a return deduction) and Exchange Fee options are available under the dashboard tab.

👉 Prefer a visual walkthrough?
How to Configure Exchange Fees
Return Fee Configuration and Processing

1. In the Settings page, find the Refund Deduction (Refund Fee) section.

2. Check the box “Deduct a return fee on your refunds” to enable a restocking fee on all refunds.

3. Enter the fixed fee amount in the input field (e.g. $30). This amount will be subtracted from each customer’s refund.

4. Click Save (if needed) to apply your changes.

After enabling, the app will automatically deduct that amount from any refunds you issue. This is essentially a restocking fee: for example, a $20 fee on a $100 return would leave an $80. We recommend notifying customers about this fee. The app suggests you update the shipping helper text in the Returns Portal settings so buyers understand the deduction.

1. On the same Settings page, locate the Exchange Fee section.

2. Check “Add an exchange fee by default” to enable this option.

3. Next, create a Shopify product whose price equals the exchange fee you want to charge (for example, a $10 “Exchange Fee” product).

4. Copy the admin URL of that product (the link from your Shopify admin, e.g. https://admin.shopify.com/store/your-store/products/123456789). Paste it into the Product URL field in the app.

5. Click Validate. The app will confirm the product and show its name. (You can remove or change it later with the “X”.)

6. Click Save (if there is a save button) to finish.

With this enabled, whenever an exchange is processed, the app will add the price of that product to the new order as a fixed fee. In other words, the customer pays the exchange fee amount on top of any price difference. Important: If you enable both Refund Fee and Exchange Fee, be careful during an exchange. Both could apply (deducting from the refund and charging the fee), effectively charging twice for the same exchange.

• Refund Fee (Return Deduction): This is a fixed fee deducted from the refund amount when a customer returns an item without getting something new. It’s a restocking fee that offsets return. For example, if you refund a $100 order and your refund fee is $20, the customer gets $80 back.

• Exchange Fee: This is a fixed fee added to the exchange order when a customer swaps an item. It is implemented via a product charge and is collected in the new order. For example, a $10 exchange fee product means the customer pays an extra $10 for the exchange.

• Key Difference: A refund fee reduces what the customer is paid back, while an exchange fee increases what the customer owes (for the new item). As one retailer explains, “return fees are deducted from the refund amount” whereas “exchange fees are charged through the return portal” as an added .

• Avoid Double-Charging: If both fees are turned on, a full exchange (return + new order) could trigger both. Be sure this matches your policy — you might only want one fee or the other.

• Refund Only: A customer returns an item for a refund (no replacement). With the Refund Fee enabled, you deduct the set amount from their refund. Example: A customer returns a shirt worth $100. If your refund fee is $20, the refund given is $80.

• Product Exchange: A customer exchanges for a different size or variant. The Exchange Fee applies here. Example: A customer swaps a medium shirt for a large. The app creates a new order for the large shirt and adds the exchange fee (say $10) to that order, so the customer pays that $10 plus any price difference.

• Exchange with Both Fees On: If a customer does an exchange and both fees are enabled, the refund for the returned item would be reduced by the refund fee, and the new order would include the exchange fee. This could make the customer pay double (once on the refund side and once on the exchange side), so choose your fees accordingly.

These settings let you control extra fees on returns or exchanges to offset costs. By following the steps above, you can easily enable or disable each fee in the Exchange It app settings. Always communicate these fees clearly in your return policy and portal so customers are aware before they complete their request