Returnly Credit is an add-on feature that we offer to Returnly Premium subscribers. Additionally, you must have a Stripe account to take advantage of this feature (this article shows you how to set it up and link it to Returnly). If you don't have access to Returnly Credit but would like the feature, please reach out to email@example.com.
Returnly Credit allows shoppers to instantly shop again when making a return. Returnly pays for the new items up front and takes on the product risk, so orders ship right away.
By giving shoppers lightning-quick purchasing power during the return, merchants can exceed their customers expectations while increasing retention and revenue without assuming risk in regards to unreturned (not shipped) or damaged product.
How Returnly Credit Works
Returnly Works to Save the Sale
When customers go through the return flow, they start by viewing the item(s) that are eligible for return. Returnly encourages your shoppers to exchange or shop again rather than only requesting a refund in three ways:
- Return for the same item - we allow customers to exchange for the right size or color.
- *Return for a refund (this is where Returnly Credit covers the majority of use cases) - we offer Returnly Credit to shop your store while waiting for their return to be processed.
Return for something new - we allow shoppers to exchange for a completely different priced product from your Shopify Collections (Returnly Premium feature only).
Orders Are Fulfilled Right Away & Risk is Covered
When an exchange / order is made with Returnly Credit, we place the new order in Shopify in real-time, triggering a confirmation email to the shopper that their order has been placed.
Because the order ships right away, there is inherent risk involved. Risk that the original product doesn't come back or the goods come back worn and damaged. Returnly covers this risk on behalf of the merchant.
- Gift exchanges (under development, Returnly Premium only) - allows a recipient of a gift to exchange for something else without alerting the original gift giver - we anticipate that this will be available at theend of 2021.
- Automated reminders for unused Returnly Credit.
A Stripe account is needed so that Returnly can send money to your account to settle orders made with Returnly Credit. Stripe is our method for exposing this experience to shoppers and allows us to pay you back for orders made with Returnly Credit.
These transactions are fronted by Returnly, and Returnly assumes the fraud risk. You (as the merchant) will not be responsible for any fees related to processing Stripe transactions, since Returnly assumes these costs.
Additionally, this connection to Stripe is irrelevant to your existing payment processing system - so nothing will change with how you receive or refund payments to your shoppers.
Money Flow Scenarios
There are two primary scenarios that can occur from a shopper being offered Returnly Credit:
Scenario 1: Your shopper does not use Returnly Credit
When the return is received by your warehouse team, Returnly Credit is deactivated and your customer receives their refund to their original payment method
Scenario 2: Your shopper uses the full or partial amount
Returnly will send the order amount to your Stripe account. Once you receive the return item and deem it in good condition, Returnly collects the money which was fronted for the shopper via an ACH transaction.
If the shopper buys more, the same scenario occurs.
Now that you understand the overall concept of Returnly Credit, follow the next articles to get it set up.
Curious toeffectively communicate Returnly Credit at each stage of the shopper journey? Read our best practice guide.