Returns don’t have to mean lost sales. A well-managed return in store process can turn refunds into exchanges or even upsells. When customers perform a return in store, they’re already engaged with your brand. Instead of simply processing a refund, retailers can use this moment to offer alternatives, suggest similar products, or provide store credit.
While online returns are common, they come with higher costs and lower customer satisfaction. In fact, studies show that only 5% of in-store purchases are returned, compared to 15.2% for online orders.
Why Retailers Should Offer Return In Store?
Many retailers view returns negatively, but when customers return items in-store, it opens up valuable opportunities for retailers, such as increasing foot traffic, and giving retailers the chance to convert returns into new sales through exchanges or upsells. When customers return in store they are more likely to browse and purchase other products, helping retailers recover lost revenue.
Most importantly, when customers return in store it creates a more personal customer experience, strengthening brand loyalty and reducing frustration compared to lengthy online return processes. Retailers who get this right see happier customers, lower return costs, and maintained profitability.
Retailers that use Shopify for eCommerce and Point of Sale often choose between native Shopify POS returns and Loop POS, a dedicated returns app that is pre-integrated with Shopify. In this blog, we’ll evaluate the best POS system for retail returns and reasons why retailers choose one over the other.
The Best POS System for Retail Returns: Shopify POS or Loop POS
Shopify POS
Shopify POS simplifies returns by syncing in-store and online sales, allowing customers to return or exchange items at any location, even those purchased online. Return in store can be processed directly in the POS system, with inventory updating in real-time across all locations. Retailers can offer flexible refund options, including refunds to the original payment method, store credit, or exchanges. This effortless omnichannel return process is convenient for the customer while ensuring accurate inventory management. Shopify POS returns is an excellent choice for retailers managing a simple return process.
For retailers looking for a unified platform that integrates online, in-store sales and returns effortlessly, Shopify POS could be the best POS system for retail returns.
Loop POS
Loop POS is a dedicated application designed to work alongside Shopify POS, allowing retailers to manage return in store and exchanges. Customers can bring items to the store, where a retailer processes the return using the Loop POS app.
While the return in store process in Loop POS functions similarly to Shopify POS, one key distinction is the ability to configure return reasons. Retailers can create custom Parent Reasons to categorize returns and, if more specificity is needed, add a New Child Reason within the return reason group. This feature enables retailers to track return trends more effectively, refine their policies, and enhance the overall customer experience. Check out more details on return reasons.
Loop now supports exchanges using Shopify’s native exchange system. This improves how exchanges are created, linking them directly to the original order and reducing accounting and data issues.
For retailers focused on customizing return reasons and improving return analytics, Loop POS could be the best POS system for retail returns.
How to Sync POS Returns to NetSuite
To keep inventory and finances accurate, it's important to sync POS returns to your ERP system. Since many Shopify retailers use NetSuite as their ERP, we’ll focus on how returns from Loop POS and Shopify POS sync into NetSuite to simplify this process.
Return In Store by Customer:
The return process begins when a customer visits the store to return a purchase. The retailer looks up the order ID, selects the item to be returned, specifies the reason, and processes the refund.
Sync Returns Data to NetSuite
HotWax’s Integration Platform sync returns to NetSuite while retaining helpful details like payment method mappings and the return locations.
When returns are posted to NetSuite the following steps take place
• Cash sales in-store: A Cash Refund record is created and linked to the original cash sale, while the returned inventory is restocked at the store location.
• Online order returned in-store: An RMA is created and linked to the original sales order. Then an Item Receipt record is auto-generated, updating inventory at the return location.
- A Credit Memo is created and linked to the RMA, followed by a Customer Refund record based on the refund method. Once processed, the Credit Memo and the RMA are closed.
When customers return in store, the return request and receipt are processed simultaneously.
HotWax syncs all return data to NetSuite, enabling all subsequent actions, from RMA generation to customer refund creation automatically in NetSuite. This process also helps maintain accurate GL accounting and posting, simplifying financial reconciliation.
The Best POS System for Retail Returns: Major Highlights
HotWax Commerce has extensive experience working with various retailers who use both Shopify POS and Loop POS for return in store. Retailers have different preferences when selecting the best POS system for retail stores, depending on their unique business requirements.
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Unified System: Retailers who want a unified system to manage their returns prefer Shopify POS, as it allows them to use a single system for both purchases and return in store. In contrast, retailers who choose Loop POS must use two systems, Shopify POS for in-store purchases and Loop POS for processing returns.
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Customize Return Reason: In Loop POS, retailers get an additional feature where they can create nested return reasons, and if a retailer wants a reason to be more specific, they can use child reasons. When it comes to Shopify POS, retailers have a predefined option, and if they want a specific reason, they have to add it under the 'Other' predefined option.
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Shopify’s Exchanges V2: Loop POS does not support Shopify’s Exchange V2 feature, which enables retailers to adjust exchanges and returns directly within the original sales order.
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App Structure and Usability: Unlike Shopify POS, which combines purchases and returns in a single application, Loop POS operates as a separate app specifically for returns and exchanges. This means retailers need to switch between Shopify POS and Loop POS when processing different types of transactions.
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Retail Returns, Simplified.
HotWax Commerce is an omnichannel Order Management System that helps retailers sync Shopify returns to NetSuite, simplifying the returns process. This integration ensures that each return, payment adjustment, or refund transaction is accurately reflected in NetSuite.
In addition, HotWax Commerce supports Shopify’s Exchanges V2, simplifying in-store exchanges by managing them as separate orders. This approach ensures clear tracking of returns, exchanges, and refunds in all external systems like NetSuite that do not allow edits on invoiced orders.
To learn more, read the full blog here: What is Shopify Exchange v2 and Why is it Introduced?
With its synchronization capabilities, HotWax Commerce also provides retailers with expert guidance in selecting the best POS system for retail returns, ensuring they implement the most efficient and scalable returns management solutions.
