ChannelEngine: returns and refunds [beta]

ChannelEngine provides a new workflow that separates the existing returns and refunds processes that are described in the article ChannelEngine: returns.

Table of contents

Introduction

Returns and refunds workflow

• Marketplace returns
• Merchant returns
• Merchant refunds
• API endpoints
• Limitations

Introduction

Prior to this update, ChannelEngine supported only a single returns process. A physical return was always required to issue a refund for an order based on the specific product quantities included in the order. For more information, check out the article ChannelEngine: returns. Although related, returns and refunds are two distinct processes:

• Returns - the physical process of customers sending products back to the merchant.
• Refunds - the financial process of refunding the customer for any amount paid. 

ChannelEngine has introduced a new workflow that supports returns and refunds as separate processes, and also supports product bundles, which are unsupported in the current returns process. By decoupling the refunds process from the existing return process, merchants can refund order amounts in full or partially, without requiring the physical return of products.

Returns and refunds workflow

You can use ChannelEngine's Merchant API to process returns and issue refunds using the new workflow. The new workflow supports marketplace returns, merchant returns, and merchant refunds.

Marketplace returns

When a marketplace declares a return, it notifies the merchant that a returned product is on the way. When the product is received by the merchant, the merchant can:

1. Acknowledge the return (optional).
   • This action is optional, however, it is useful as it allows for the addition of identifiers such as the order ID, so that the merchant can keep track of the return throughout the workflow. 
2. Handle the return.
   1. The merchant chooses an action – refund, repair, exchange, or reject.
   2. If the refund action is chosen, ChannelEngine automatically creates a refund for the full value of the returned products.
3. Issue a refund for the products in the return.
   1. The merchant creates a refund.
   2. ChannelEngine matches the refund to the outstanding return.
   3. The refund action marks the return as Handled.

Merchant returns

In this scenario, the marketplace does not notify the merchant that a product was returned. The return is received by the merchant and the merchant must create a return on ChannelEngine for handling as described in step 2 above, Handle the return.  

Merchant refunds

When a refund is created on ChannelEngine, the system first checks if the marketplace supports direct refunds. If supported, a refund is automatically created on ChanneEngine, and no further action is required. If the marketplace does not support direct refunds, but supports either marketplace or merchant returns:

1. ChannelEngine creates a return for the refunded product.
2. The refund action marks the return as Handled.

The new workflow ensures that all of required information is available on ChannelEngine regardless of whether the marketplace is return-based or refund-based.

API endpoints

Use the following API endpoints to manage the new workflow:

• Fetch returns - use the GET /v2.1/returns/merchant/ endpoint.
• Acknowledge a return (optional) - use the POST /v2.1/returns/merchant/acknowledge endpoint.
• Declare a return - use the POST /v2.1/returns/merchant endpoint.
• Handle a return - use the POST /v2.1/returns/merchant/handle endpoint.
• Issue a refund - use the POST /v2.1/refunds/merchant endpoint. 

Limitations

• Mixing the old and new return workflows is not supported.
• Marketplaces can vary in their support for returns and refunds. E.g.: some support partial refunds, others only full refunds. You can use the /order endpoint to return the level of support for each order.
• Refunds are currently issued only in the order's original currency and include VAT and any applicable sales taxes.