How do returns work on Shopify Collective?

Updated on Sep 08, 2026

Retailers set a returns policy that determines how returns, return fees, declines, and refunds are handled, and you can view each retailer's policy from your connection details page with them. Depending on that policy, returns can be automated: created directly in your Shopify admin, with return labels and reasons synced, and your side of closing a return syncing back to the retailer's store.

If a retailer's automated policy doesn't fit your workflow, you can agree on a manual, legacy process instead, such as the retailer handling returns at their own location, or you providing a return label and creating the return yourself in your Shopify admin. Note that with automatic payments and manual returns, the cost of a return label isn't included in your payouts, so you'll need to settle that cost with the retailer outside Collective.