Exchange Creation Options

OVERVIEW

Loop can create exchanges in two different ways:

Option 1 (Recommended): Add exchange items to original order

This is Shopify's newer exchange functionality that they built. This is the most seamless, but there are some limits to who is eligible.

Benefits

• Better reporting

  • No reconciliation needed for sales reports in Shopify.

• Structured data

  • All exchange items are recorded on the same order, so it's easy to see all exchanges that are related to the same original order in one view.

Limitations

• Fulfillment: shipping provider (3PL/warehouse/ERP) must be able to handle multiple fulfillments on a single order.

  • Fulfill.io and Shipstation are shipping providers who are compatible with this option. Others may be compatible as well but could require testing.

  • If you're not sure, please ask the provider before making a decision.

• Third-party orders: Exchanges cannot be offered to shoppers for orders that are placed through third-parties, such as Meta (Facebook/Instagram). Shoppers will only be offered store credit or refund.

Here is how an exchange shows up on an order in Shopify:

Option 2: Create separate exchange orders

This is Loop's legacy functionality where a new exchange order is created for each exchange request.

Benefits:

• More configurability on how Loop creates exchange orders

  • Beneficial for merchants who have integrations into third-party systems, such as Netsuite.

• Exchanges exist as a separate order

  • Eliminates the need for fulfillment providers to support multiple fulfillments on a single order

  • Makes it easier for third-parties to identify new exchanges.

Limitations:

• Reconciliation needed for sales reporting in Shopify

  • Requires reconciliation for Shopify reporting to be accurate

  • Will inflate discounts, returns, and/or net sales depending on your configuration

Here is an example of an exchange order: