ChannelEngine: returns and refunds [beta]

About this article

This article describes the returns and refunds feature on ChannelEngine. 

Table of contents

Introduction

Setup

Returns

• Marketplace returns
• Merchant returns
• Marketplace-fulfilled returns

Refunds

• Issue refunds
• Refunds on marketplace returns

FAQs

Introduction

By default, ChannelEngine supports a single returns process that incorporates refunds along the way. This means a physical return is always required to issue a refund, and the refund is based on the product quantities in the related order. For more details on the default returns process, which includes refunds, check out ChannelEngine: returns.

The new returns and refunds feature treats returns and refunds as two separate 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.

By decoupling returns from refunds, you have more flexibility on the platform to:

• Handle a return and issue a full refund for the physical products in the return.
• Refund a full or partial order amount, without requiring the physical return of a product. 
• Manage returns and refunds for standalone products and product bundles. 

For guidance on how to implement the new returns and refunds feature via the Merchant API, check out the article Merchant API: returns and refunds [beta].

Setup

To enable this feature, contact your customer success manager or ChannelEngine’s Support team.

Returns

There are three return possibilities:

1. The marketplace declares the return - after the customer has consulted the marketplace's customer service, or declared the return in the marketplace's back-end. These are known as marketplace returns.
2. The merchant declares the return - after the customer has consulted the merchant's customer service directly. These are known as merchant returns.
3. The marketplace declares and handles the return for a marketplace-fulfilled order - e.g.: the order was fulfilled via fulfillment by Amazon (FBA), and returned to Amazon. These are known as marketplace-fulfilled returns.

From the Returns overview on ChannelEngine, you can view a list of marketplace and merchant returns. To go to the Returns overview, click Orders, Returns. From the overview, you can open each order's details to handle each return accordingly.

Marketplace returns

ChannelEngine imports returns from marketplaces at a regular frequency. The returns have the status In progress – not New, as the process has already started. Since the marketplace creates the return, the return reason is provided by the marketplace.

Handle returns

When a marketplace declares a return, it notifies you that a returned product is on the way. When you receive the return, you can handle it either via the ChannelEngine's web interface or the Merchant API.

To handle a return via the web interface:

1. Open the order details.
2. Click the View order icon for a return and go to the Return section of the order details. 
3. Click Handle return to specify how you want to handle the return.
4. Select the returnable stock quantity for each product on the order and the appropriate handling option. Depending on the reason for the return, you can choose between the different handling options: Exchange, Keep, Refund, Reject, or Repair. 
   
5. Click Save.
6. After you click Save, the return is exported and its status changes to Handled. 

Merchant returns

Some marketplaces do not offer the option to register returns directly. In this case, you have to provide a return form in the parcel or submit your own return policy to the marketplace, so the buyer knows how they can return the item. To handle a return directly with the buyer, you must first create it on ChannelEngine.

Create returns

You can create a return either via the ChannelEngine's web interface or the Merchant API.

To do this via the web interface:

1. Open the order details.
2. Click Create return.
   
    
3. Select the returnable quantity for each product on the order and the reason for the return. 
4. Optionally, acknowledge the return by enabling the Create as acknowledged toggle. Acknowledging the return prevents importing the same return multiple times to your merchant system. After acknowledgement, the return does not appear again in subsequent GET calls for new returns.
5. If you acknowledged the return, enter your return number. 
6. Enter other comments as needed.
   
7. Click Save to create the return. 
8. After you click Save, the return is created, either with status In progress (acknowledged) or New (unacknowledged).

Handle returns 

After you create a return, you must handle it in the same way that marketplace returns are handled. 

1. In the Return section of the order details, click Handle return.
2. Select the returnable stock quantity for each product on the order and the appropriate handling option. Depending on the reason for the return, you can choose between the different handling options: Exchange, Keep, Refund, Reject, or Repair. 
   
   
3. Click Save.
4. After you click Save, the return is exported and its status changes to Handled. If you choose the  Refund handling option, ChannelEngine automatically creates a refund for the full value of that product for processing.  A refund is triggered for all the accepted items in the return that you chose to refund. 

Marketplace-fulfilled returns

Some marketplaces offer order fulfillment services. More information on this can be found in the article External fulfillment: FBA, LVB, FBC, and ZFS. Buyers can return items fulfilled externally as easily as via your own service, with the added benefit that the marketplace handles the entire return process. However, these returns are only imported to ChannelEngine if the marketplace supports this feature.

These returns are for administration purposes only, similar to marketplace-fulfilled orders, and are marked with a Handled status. 

Refunds

ChannelEngine provides a Refunds overview that lists the refunds created by the marketplace or by you, the merchant. To open the Refunds overview, click Orders, Refunds.

When a refund is created on ChannelEngine, the system first checks if the marketplace supports direct refunds. If the marketplace supports refunds, a refund is automatically created on ChannelEngine, and no further action is required.

If the marketplace does not support direct refunds, but supports either marketplace or merchant returns:

• ChannelEngine creates a return for the refunded product.
• On the Edit return page, you can select the Refund action to handle the return. 

Issue refunds

Alternatively, depending on the marketplace, you might have the option to issue a full or partial refund without requiring the physical return of the product. E.g.: because you agreed with the buyer that they can keep the goods, but you want to issue a refund to compensate them. Issuing a full or partial refund allows you to issue refunds without updating stock quantities.

To do this:

1. Open the order details.
2. Click Add refund to specify the refund details.
3. Toggle the Refund option to see the full refundable amount for the product. To specify a partial amount, update the refund amount accordingly.
   
4. Select the reason for the refund.
5. Optionally, enable the Create as acknowledged toggle to acknowledge the refund. This simplifies importing refunds in future GET calls for new refunds.
6. If you acknowledged the refund, enter the Merchant refund number.
7. Enter other comments as needed.
8. Click Save. ChannelEngine matches the refund to the outstanding return and updates its status to Handled.

Refunds on marketplace returns

Merchant refunds

If you choose the Refund action on a return that you handle, ChannelEngine automatically creates your refund for the full value of the product for processing by the marketplace. Once processed by the marketplace, a refund is triggered for all the accepted products in the return that you chose to refund. If you reject the return, the marketplace marks it as "Does not comply to return conditions" and does not process the refund. 

Marketplace refunds

Sometimes, a marketplace issues a refund for a return that is already handled. In this case, ChannelEngine automatically attaches the refund to the return lines in the already-handled return, helping keep your internal administration up to date.

To simplify importing refunds in future GET calls for new refunds, you can acknowledge both merchant-created and marketplace-created refunds from the web interface or via the Merchant API.

FAQs

What currency are refunds issued in?
Refunds are currently issued only in the order's original currency and include VAT and any applicable sales taxes.

What is the difference between 'Created date' and 'Return date'?
While Created date is a timestamp of when the return was created on ChannelEngine, Return date is a timestamp of when the return was created in the source system (i.e.: the marketplace). Note that Return date is only set and displayed if that data is available.

How do I know what each marketplace supports return-wise?
While this information might not be available yet for every channel, if and how returns are supported is displayed under the Marketplace features section of each marketplace guide.

I did not get a return reported via the channel, but the customer did return it. How do I process that?
Even though it is a regular procedure for customers to mark one or more items for a return on bol, for instance, sometimes customers return an item in different ways. As bol does not offer the automated option to create a return, the only solution is to report it manually in bol's back-end. This procedure is similar to other channels that support marketplace returns.

When updating a marketplace return, the empty 'Merchant return number' field gets a red border. What is that?
Because the pop-up to handle returns is identical for both merchant and marketplace returns, there is a validation on the merchant return number text box. However, when submitting the update, the input from this field is only validated and stored if it concerns a merchant return, with an actual Merchant return number.

I am missing marketplace returns on ChannelEngine. What do I do?
Returns are only saved when the original order is also known on ChannelEngine. Check out the article Why are some of my returns not visible on ChannelEngine? for more information.