Returns and Discounts

  • Updated

Contents:

  1. Returnly's approach to discounted returns
  2. Order level discounts
  3. Line item discounts
  4. Buy X, Get Y (BOGO)
  5. "Compare at," or slash through pricing

 

Discounts strategies can have a meaningful impact on your conversion rate and top line sales. But what happens when a customer returns a discounted item or a discounted return is part of a larger order? In this article, we’ll explore the different types of shopper discounts you may offer and refund logic when discounts are applied.

 

 

Types of discounts

First, let’s explore the different types of discounts you may offer your customers:

  • Order discounts (such as percentage off or fixed amount)
  • Product discounts (such as percentage off or fixed amount)
  • Buy X, Get Y (BOGO)
  • Free shipping discounts

 

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Returnly’s approach to discounted returns

 

Regardless of discount type, Returnly refunds the shopper the amount reflective of what the customer paid for the individual item with the discount applied. This is regardless of if the customer returns one or multiple items within an order containing line item or order level discounts. Continue reading to explore different discount types in greater depth and discounted return examples. 

 

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Order level discounts

 

Order level discounts are applied to all items within an order using a percentage off or fixed amount discount. When a shopper makes a return, Returnly will refund the customer for the returned item less the proportionate discount applied. 

 

Percentage Example:

Discount: Enjoy 10% off your order!

Customer buys:

  • Shirt ($20, reduced to $18)
  • Jeans ($50, reduced to $45)
  • Belt ($10, reduced to $9)

Customer returns any of the above items, they would receive the following refund:

  • Shirt: $18
  • Jeans: $45
  • Belt: $9

 

Fixed Amount Example: 

Discount: Spend at least $25, get $10 off.

Customer buys:

  • Shirt ($20)
  • Jeans ($50)
  • Order total is $70 - $10 off fixed discount = $60.

Customer returns any of the above items, they would receive the following refund:

  • Shirt: $17.14 
  • Jeans: $42.86 

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Line item discounts

 

A line item discount is applied to an individual item within a larger order, where the other items within the order are not discounted. When a shopper initiates a return for the discounted item, Returnly will refund the customer for the item’s price less the discounted amount (or it will be free, if 100% discounted). Any full priced items that are returned will receive a full refund. 

 

Example: 

Discount: Enjoy 10% off jeans!

Customer buys:

  • Shirt ($20)
  • Jeans ($50, reduced to $45)
  • Belt ($10)

Customer returns any of the above items, they would receive the following refund:

  • Shirt: $20
  • Jeans: $45
  • Belt: $10

 

Note: An item can have both order and line-item discounts applied.

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Buy X, Get Y (BOGO)

 

Buy X, Get Y (BOGO) discounts will be applied only to the item(s) you are including within the BOGO special. When a customer returns one of these items, the discounts are not distributed across other line items within the order. In other words, if a customer returns the full priced item, they will receive a full refund and be able to keep the discounted item at its discounted price – even if it was free.

 

Example 1:

Discount: Buy a jacket, get sunglasses for 50% off.

Customer buys:

  • Jacket ($80)
  • Sunglasses ($30, discounted to $15)
  • Boots ($95)

Customer returns any of the above items, they would receive the following refund:

  • Jacket: $80
  • Sunglasses: $15
  • Boots: $95

 

Example 2: 

Discount: Buy jeans, get a belt for free.

Customer buys:

  • Shirt ($20)
  • Jeans ($50)
  • Belt ($0)

Customer returns any of the above items, they would receive the following refund:

  • Shirt: $20
  • Jeans: $50
  • Belt: Free

 

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“Compare at” or slash through pricing

 

While Shopify considers adding a “Compare at” price to be a discount, Returnly recognizes this as a price change. For example, if a merchant temporarily decreases the price of a shirt from $20 to $15 using Shopify’s slash pricing feature, it would be treated as a price change and not a discount. Therefore should a customer opt to return this item, they would receive a refund reflective of what they paid: $15. 


Note: Free shipping discounts do not impact a product’s price and therefore have no impact on a customer’s refund amount.

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