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2-minute read. For the full stage-by-stage breakdown with Shopify analytics, see the advanced version.

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Who Is This For?

You use Frate Returns with a 3PL that does not support the Shopify Fulfillment Order workflow (e.g., Stord). Because the Shopify Exchange API requires this workflow, Frate creates exchanges as separate new orders using Draft Orders instead of adding exchange line items to the original order.

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Three Levers That Control Timing

  1. Refund / Store Credit Trigger — At what shipment stage (Shipped, Delivered, or Inspected) is the return processed and the refund issued?
  2. Exchange Release Trigger — At what shipment stage is the Draft Order completed into a real order and the new item sent?
  3. Instant Exchange — An option where the exchange is released immediately upon return approval, before the customer ships back.
These are configured independently.

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Lifecycle Overview

Two parallel tracks — the original order and the exchange order — move independently: Original Order: Exchange Order: With Instant Exchange, the Draft Order is completed into a real order immediately upon approval — before the customer ships.

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Key Takeaways

“You owe a customer a refund” is permanent and expected. The original order’s sale is canceled when the return is processed, but the payment remains. Shopify expects a refund transaction to balance this, but the compensation was given on a separate exchange order. Shopify has no way to link the two. This is the same mechanic as store credit via gift card — it’s not a real liability. Shopify analytics need filtering. Exchange orders use a 100% discount code (FRATE_RETURN_CREDIT) to zero out payment. This over-reports discounts and under-reports net sales. Filter by the frate-exchange order tag to isolate exchange orders and reconcile. Exclude the FRATE_RETURN_CREDIT discount code from your discount reporting. In aggregate, the financials are correct. Across the original order (sale canceled by return) and the exchange order (new sale at gross value), the total picture balances. It just doesn’t balance within each individual order.