Returns are an unavoidable aspect of omnichannel retail, but when managed efficiently, they can minimize revenue loss and keep inventory moving. Whether customers return items online or in-store, the process should be streamlined to avoid refund delays, inventory discrepancies, and financial misalignment. A well-structured returns ecosystem ensures that refunds are processed correctly, returned stock is quickly made available for resale, and accounting records remain accurate.
Handling returns with disconnected systems or manual processes leads to errors and inefficiencies. Without proper integration between eCommerce platforms, POS systems, order management solutions, and ERPs, retailers may face refund mismatches, delays in restocking, and gaps in financial reporting.
This guide explains how Shopify retailers can build a fully integrated omnichannel returns management tech stack using Loop Returns, HotWax Commerce, and NetSuite.
What is Omnichannel Returns Management?
Omnichannel returns management involves handling product returns across all sales channels, whether online or in-store. A well-integrated retail tech stack helps with accurate return processing, real-time inventory updates, automated refunds, and up-to-date financial adjustments in the general ledger posting.
The Technology Stack for Omnichannel Returns Management
To build an efficient returns process, retailers must integrate multiple systems that handle different aspects of returns:
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Shopify (eCommerce + POS): Serves as the front-end platform where customers initiate return requests. Shopify eCommerce allows customers to request online returns, while Shopify POS enables store associates to process in-store returns.
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Loop Returns (RMS): Provides a dedicated returns portal where customers can submit return requests, choose between refunds, store credit, or exchanges, and track return status. Loop also automates return creation and return status updates in Shopify.
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HotWax Commerce (OMS + iPaaS): HotWax’s integration platform (iPaaS) connects Shopify, NetSuite, and Loop Returns to synchronize returns across these systems. HotWax OMS records orders, returns and product details that helps iPaaS to retrieve original order details, and enables accurate linking between RMA and sales orders in NetSuite.
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NetSuite (ERP + Accounting): Records financial adjustments related to returns, including RMAs, item receipts, and refunds. It also supports return-related reporting and reconciliation.
By integrating these platforms, retailers can create an efficient, automated returns process that improves accuracy and minimizes delays.
How to Guide: Omnichannel Returns Management
Customers can initiate returns for their purchases both online or in-store.
Online Returns Management
Customers expect a simple and transparent online returns process. Without proper integration, return requests may lead to inventory discrepancies, refund delays, or incorrect financial records.
Systems involved: Loop, Shopify, HotWax Commerce OMS, HotWax’s Integration Platform, and NetSuite.
Online Returns Management Workflow
1. Initiating an Online Returns: Customers start the return process in Shopify, where they are redirected to Loop’s interface. Here, they select the items they wish to return and choose their preferred resolution, such as refunds, store credit, or exchanges.
2. Creating a Return in Shopify: Loop Returns syncs the return to Shopify, updating the order status to "Return in Progress." This allows retailers to track returns directly in Shopify for better traceability.
3. 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.
4. Creating 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.
5. Receiving Returned Items and Updating Inventory: When returned items arrive at the warehouse, the following steps take place:
• An Item Receipt record is created and linked to the RMA.
• Inventory is restocked, and NetSuite updates the corresponding inventory count.
• The RMA status changes from "Pending Receipt" to "Pending Refund."
HotWax Commerce Integration Platform then syncs these details from NetSuite to Loop.
6. Closing the Return and Refunding the Customer: When HotWax’s Integration Platform then syncs these details from NetSuite to Loop, the refund process begins:
• 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.
7. Syncing Refund Data to NetSuite: HotWax’s Integration Platform fetches refund details from Loop Returns, transforms the data into a NetSuite-compatible format, and pushes it to NetSuite. A SuiteScript in NetSuite handles the refund process:
• A Credit Memo is created and linked to the RMA.
• A Customer Refund record is generated based on the refund method selected in Loop Returns.
• Once processed, the Credit Memo updates from "Open" to "Fully Applied," and the RMA status changes from "Pending Refund" to "Refunded."
8. 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.
In-Store Returns Management
Customers sometimes return in-store purchases or online orders directly to a nearby store. By leveraging Shopify POS for in-store returns, store associates are not required to navigate through a separate interface.
Systems involved: Shopify POS, Shopify, HotWax Commerce OMS, HotWax’s Integration Platform and NetSuite.
In-Store Returns Management Workflow
When customers return items in-store, the return request and receipt are processed simultaneously.
1. Process In-Store Returns: When customers return an item in-store, the store associate retrieves the order, selects the item to be returned, and processes the refund.
2. Download In-Store Returns: HotWax Commerce OMS downloads the return data from Shopify POS. These returns are downloaded as Completed, with the payment marked as Refunded.
HotWax also restocks the returned inventory based on visibility into the specific location where the inventory was received.
3. Transform and Sync Returns Data to NetSuite: HotWax’s Integration Platform imports return details from the OMS and transforms this return data for NetSuite.
HotWax’s Integration Platform syncs return data to NetSuite while retaining details like payment method mappings and return locations. Depending on the return type, NetSuite processes it as follows:
• Cash Sale Returns: A Cash Refund record is created, and the returned inventory is restocked at the store.
• Online Orders 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.
HotWax syncs all return data to NetSuite, enabling all subsequent actions, from RMA generation to customer refund creation automatically in NetSuite. This returns management process also helps maintain accurate GL accounting and posting, simplifying financial reconciliation.
Why Integrated Omnichannel Returns Management Matters
• Consistent return experience across all channels
Customers can return items in-store or online, regardless of where they made the original purchase, enabling a consistent and hassle-free return process.
• Automated return approvals and processing
Loop Returns handles customer-initiated return requests, while HotWax and NetSuite automate backend workflows, reducing manual effort and minimizing errors.
• Faster refund processing
Shopify, Loop Returns, HotWax’s iPaaS, and NetSuite work together to initiate and complete refunds efficiently, eliminating delays.
• Accurate inventory updates
HotWax Commerce OMS automatically syncs returned item inventory to Shopify, making them available for resale without delays, preventing stock discrepancies.
• Improved financial reconciliation
HotWax’s iPaaS enables NetSuite to record all return-related financial adjustments, maintaining accurate refund transactions and inventory movements.
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Learn More: Download the Whitepaper
A well-integrated omnichannel returns ecosystem enables retailers to process returns efficiently, maintain accurate inventory records, and automate financial adjustments.
To dive deeper into omnichannel retailing, system integrations, and end-to-end inventory, order fulfillment and returns management workflows, download our whitepaper. Inside, you'll discover:
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Omnichannel fulfillment workflows, including Ship From Store, BOPIS, and warehouse fulfillment.
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Inventory management workflows, including purchase orders, transfer orders, and cycle counts.
Get the full picture of omnichannel order, inventory and returns management, download the whitepaper now.
