# Process refund or exchange Once you approve a return request, the next step is to process it. What you need to do depends on the solution the customer chose — a refund or an exchange. ## Before you start There are two solution categories, each with a different processing flow: * **Refund solutions** (original payment, bank transfer, Wise, gift card, store credit, discount code) * Process these by clicking Refund on the request detail page. * **Exchange solutions** (exchange for a different item, replace with the same item) * Process these by creating or linking an exchange order. If you're processing an exchange, also review the following Shopify limitations before proceeding: > Shopify Help Center： * Exchange items cannot be added to orders that include duties. You can still process the return, but you won't be able to create an exchange order for it. * Order-level discounts cannot be applied to exchange items. You can apply a product-level discount instead. ## Processing a refund When the solution is a refund, the request shows a process status of **Pending refund** after approval. Click **Refund** in the product card to process it. What happens next depends on the refund method:

Refund method	What ParcelWILL does
Original payment	Issues the refund automatically through Shopify
Bank transfer	Marks the refund as complete — you handle the bank transfer manually
Wise	Marks the refund as complete — you handle the transfer manually
Gift card	Generates a gift card and sends it to the customer
Store credit	Issues store credit to the customer's account
Discount code	Generates a discount code and sends it to the customer

Once processed, the process status changes to **Refunded.**

## Understanding exchange scenarios Before processing an exchange, it helps to know which scenario applies to your request:

Scenario	What it means	How it's processed
Upsell Exchange — higher value	The new item costs more. The customer has already paid the difference when submitting the request.	ParcelWILL creates the exchange order automatically on approval. No additional steps needed.
Downsell Exchange — lower value	The new item costs less. You owe the customer a refund for the difference.	You create or link the exchange order manually, then process a refund for the difference.
Exchange — same value	The customer exchanges for a different item at the same price. No money changes hands.	You create or link the exchange order manually.
Replace — no extra charge	Same item, even exchange. No money changes hands.	You create or link the exchange order manually, then click Mark as resolved.
Replace — customer pays fees	Same item, but fees apply (e.g. restocking fee). The customer has already paid when submitting the request.	ParcelWILL creates the exchange order automatically on approval. Click Mark as resolved once the replacement is fulfilled.

## ParcelWILL creates the exchange order automatically **—— Replace with customer pays fees / Upsell**

## Processing an exchange manually **—— Exchange same value / Replace with no charge / Downsell** You need to create or link the exchange order manually. Click **Create exchange order** in the product card and choose one of the following: * **Create order** — ParcelWILL creates a new Shopify order for the exchange item. * **Link existing order** — if you've already created the order manually in Shopify, enter the order number to associate it with the return request.

Once the exchange order is in place, the process status changes to Exchanged. {% hint style="info" %} Exchange order fulfillment is handled by Shopify or your 3PL — not within ParcelWILL. Once the exchange order is created, fulfillment is managed from the original Shopify order. {% endhint %} ### Completing a downsell exchange For downsell exchanges, there are two steps to complete: 1. **Create the exchange order** — follow the steps above. The process status shows **Pending exchange** until this is done. 2. **Refund the price difference** — once the exchange is complete, a **Pending refund** status appears for the difference amount. Click **Refund** to return the difference to the customer. The request only can moves to **Resolved** when both steps are complete. {% hint style="warning" %} **Pending exchange** and **Pending refund** don't appear at the same time. Complete the exchange first, then handle the refund. {% endhint %} ### Completing a replace request * **With fees (auto-created)** — ParcelWILL creates the exchange order automatically on approval. Once the replacement is fulfilled and sent, click Mark as resolved. * **No extra charge (manual)** — create or link the exchange order as described above, then click Mark as resolved once fulfilled. ## Need help? 🌻 If you have any questions, feel free to reach out to [our support team](mailto:returns@parcelpanel.ltd). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://parcelwill-returns.gitbook.io/help-center/management/process-refund-or-exchange.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.