Did you know 92% of customers are more likely to shop again if returns are easy? That’s the power of an effortless return process.
For retailers, creating a simple and efficient return experience boosts customer satisfaction and encourages repeat purchases. Shopify, as an eCommerce platform, recognizes the importance of returns and offers self-serve returns.
However, the return process extends beyond simply allowing customers to submit return requests. While Shopify provides the foundation, retailers need a dedicated Returns Management System (RMS) like Loop Returns to automate the process. Loop offers a dedicated returns portal where customers can submit return requests and track their status.
But returns management doesn’t end there. To maintain accurate financials and inventory updates, ERP systems like NetSuite require detailed return data. Many retailers use connectors like NovaModule and Celigo to transfer return data from Loop to NetSuite. However, a more effective approach is to leverage an Order Management System (OMS) alongside an integration platform to sync return details.
In this blog we will understand how retailers can excel at Shopify Returns Management with Loop Returns, and NetSuite ERP.
The Role of Shopify Returns in Return Management
Shopify serves as the foundation for eCommerce sales, offering order capturing, payment processing, and customer engagement tools. Returns management, however, extends beyond these front-end capabilities. While Shopify allows customers to initiate return requests, it lacks a dedicated returns portal or an automated system for approvals, and tracking return statuses. To address this gap in Shopify returns, retailers need an RMS like Loop Returns, which integrates with Shopify to provide a structured and automated returns workflow.
The Role of Loop Returns in Automating the Returns
Loop is widely adopted by retailers for its advanced automation and self-service return options. When a customer submits a return request, Loop captures key details such as the order ID, return reason, and the selected resolution such as refund, store credit, or exchange. Loop then syncs this data to Shopify, ensuring end-to-end visibility and automation without requiring manual intervention.
This capability not only helps meet strict delivery deadlines but also boosts overall fulfillment efficiency, allowing retailers to maintain their brand’s reputation and deliver a superior customer experience.
The Role of NetSuite ERP in Managing Returns
NetSuite plays an important role in maintaining accurate financial records and inventory levels by processing return data.
For effective returns management, every transaction in Loop Returns should be synced to NetSuite to facilitate the creation of:
1. Return Merchandise Authorizations (RMAs)
2. Item Receipt records
3. Credit Memos
4. Customer Refund records
Without proper integration between Loop and NetSuite, retailers face challenges in synchronizing return data, leading to discrepancies in financial reporting and inventory records.
Shopify Returns Lifecycle
There are four primary steps in a Shopify returns lifecycle, beginning from the customer requesting a return all the way to a refund being issued.
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Return Initiation
Customers request a return on Shopify eCommerce, which redirects them to the Loop’s return portal. Once the request is generated, Loop creates a Return record.
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Return Authorization
Loop automatically syncs these return details to Shopify. These details are now exported from Loop to NetSuite, where an RMA is opened.
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Return Processing
When the returned item is received in the warehouse, inspected, and categorized based on condition, an Item Receipt Record is created in NetSuite against the RMA, and the returned inventory is restocked. An acknowledgment of the return receipt is sent to Loop, where the return is moved toward closure.
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Refund Initiate & Return Closure
After receiving confirmation of the return receipt, Loop directs Shopify to initiate the refund. Shopify then processes the refund to the customer and sends back the refund details to Loop.
NetSuite syncs these refund details from the Loop to generate a credit memo and customer refund, helping retailers maintain accurate financial records and inventory management.
The OMS automatically syncs the completed returns and refund details from Shopify and marks them as completed, thereby finalizing the Shopify returns lifecycle.
To ensure a smooth data exchange between Loop and NetSuite throughout the return lifecycle, an integration platform is essential. This enables automated and accurate synchronization of return details, reducing manual efforts and potential errors.
Now, let’s explore the different methods to facilitate effortless data flow between these systems.
The Role of Connectors/ Integration Platform
There are two approaches to sync returns data from Loop to NetSuite.
1. Using an Integration Platform Alone
Integration platforms connect different systems without custom integration logic in each system.
Using connectors like NovaModule and Celigo automates the returns data transfer between Loop, and NetSuite. They simplify data exchange but come with some limitations.
These connectors do not link RMAs directly to their original sales orders in NetSuite. This is because they primarily automate data transfer but do not retain order-related details, making it difficult to establish a clear link between returns and their original transactions.
2. Using an Integration Platform with an OMS
An OMS has a comprehensive view of an order such as its Shopify order ID, NetSuite order ID and product ID, which connectors don’t.
Access to additional mapping details, unlike third-party connectors, means an OMS can help link RMAs directly to the original sales orders, improving traceability and simplifying return management.
When RMAs are linked to the original sales orders in NetSuite, a clear trail of transactions is created throughout the Shopify returns lifecycle. An OMS also helps link item receipt and credit memo records to the RMA, we will discuss more about this in the coming sections.
Fig 1: RMA NetSuite Linking
Role of HotWax Commerce as an Integration Platform
An OMS like HotWax Commerce offers deep integration with Shopify, NetSuite, and Loop Returns. It also provides its own built-in integration platform, eliminating the need for third-party connectors.
Order Management Systems are often at the heart of retail tech stacks, orchestrating the movement of some of the most critical data in retail operations. This central position means integrations are always necessary, so we designed HotWax Commerce to handle both order management and system integration in one platform, making operations management simple for retailers of any size.
Let's see how HotWax Commerce simplifies the return workflow by synchronizing Shopify, Loop, NetSuite, and OMS.
The Returns Workflow
Let's take a step-by-step look at the returns process, showing how systems work together to create an effective returns workflow.
Most of our customers use NetSuite as their ERP, Loop Returns as their RMS, and Shopify as their eCommerce.
Fig 2: Loop Online Returns
Initiate Online Return
This step follows the same process as seen above in the Shopify returns lifecycle: the return process begins in Shopify, where the customer initiates a return. They are then redirected to the Loop interface to complete their request, facilitated by the Shopify-Loop integration.
Create Returns in Shopify
Loop automatically syncs this new return to Shopify, adding a status "Return in Progress" record to the original sales order. This helps retailers track the entire return process directly in Shopify, their primary sales platform, for better traceability and control.
Download and Transform Returns Data from Loop
HotWax Commerce Integration Platform has subscribed to Loop’s webhook so whenever a return is created in Loop, HotWax Commerce captures, transforms, and prepares it for NetSuite in real time.
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Create RMA in NetSuite
A SuiteScript in NetSuite developed by HotWax imports this return data and creates a “Pending Receipt” RMA linked to the original sales order. This unique linking capability is enabled by HotWax’s integration having direct access to the OMS order data. From the OMS, HotWax pulled the original order’s NetSuite ID, which was not part of the return payload produced by Loop. Without this the RMA in NetSuite would not be linked to the original sales order.
In the event that a customer returns an order before the order itself has been created in NetSuite, HotWax intelligently holds the return information. Only after the order creation is completed in NetSuite, HotWax pushes the return to NetSuite, avoiding sync failures and manual intervention by system administrators.
This provides traceability, and gives warehouse teams early notice of incoming returns.
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Generate and Export Item Receipts
When a returned item arrives at the warehouse, here’s what happens next:
• An Item Receipt record is created and linked to the RMA.
• Inventory is restocked, and the corresponding inventory count is increased in NetSuite.
• The RMA status updates from “Pending Receipt” to “Pending Refund”.
HotWax Commerce Integration Platform then syncs these details from NetSuite to Loop.
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Closing Returns in Loop and Refunding Customer
Now that the returned items have been received in the warehouse, the customer can now receive the refund for their return.
The RMA status in Loop is updated from “Open” to “Closed” and Loop syncs these details to Shopify so that refunds can be initiated to the customer.
Once Shopify refunds the customer, the return is updated from “In-Progress” to “Returned”. Shopify also syncs refund details to the Loop.
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Sync Refund Details from Loop
HotWax Commerce Integration Platform fetches refund details from Loop using its webhook. It then transforms the data into a NetSuite compatible format. A HotWax SuiteScript in NetSuite imports this refund information along with helpful reference attributes such as. the Loop return ID, Shopify order ID, and the refund amount for easy reconciliation.
• To process the refund in NetSuite, HotWax’s SuiteScript does the following:
• A Credit Memo is created and linked to the RMA.
• A Customer Refund record is automatically created from the Credit Memo with the refund method selected by the customer in Loop.
• Once the Customer Refund record is created, the Credit Memo is updated from “Open” to “Fully Applied”, and the RMA is updated from “Pending Refund” to “Refunded”.
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Download Completed Returns from Shopify in the OMS
HotWax Commerce OMS automatically syncs Completed Shopify returns and marks them as "Completed" in HotWax. The returned inventory is restocked in HotWax during its periodic sync with NetSuite, which HotWax also syncs to Shopify’s unified inventory location.
While Loop offers an inventory restocking feature, HotWax recommends disabling it and letting HotWax update the restocked inventory. With HotWax’s unified inventory, Loop returns are not mapped to a physical location in Shopify, but rather a location that represents a brand's entire saleable inventory. This is because HotWax and NetSuite manage inventory across multiple locations, while Shopify only tracks inventory at a default location.
An Ideal Tech Stack for Shopify Returns
Retailers looking to simplify their Shopify returns process should consider a combination of Loop Returns, NetSuite and HotWax Commerce omnichannel Order Management System. This setup ensures accurate status tracking for returned products across systems while providing end-to-end returns traceability.
Shopify powers eCommerce sales, but retailers need a dedicated Returns Management System like Loop Returns for a simplified return experience. Loop automates return requests, tracks statuses, and improves customer satisfaction. However, to ensure accurate inventory and financial updates, posting all returns data to NetSuite ERP is important. NetSuite helps keep return data, stock levels, and financial records consistent.
Third-party connectors like NovaModule and Celigo offer basic data transfer, but an Order Management System like HotWax Commerce provides a more complete solution. It links RMAs directly to original sales orders in NetSuite, synchronizes data across platforms, and keeps inventory up to date.
This tech stack empowers retailers to optimize their returns workflow, maintain accurate inventory, and GL posting, all while securing customer satisfaction.
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