Shopify exchange v2 was introduced for Shopify POS in February 2025 to add multiple returns and exchanges within a single order.
In this blog, we’ll cover what really changed from classic Shopify exchanges, how it benefits customers, and lastly, things to watch out for when posting v2 returns and exchanges to your accounting system.
How is Shopify Exchange v2 Different From Classic Shopify Exchange (v1)?
The classic Shopify exchange workflow only allowed one exchange per sale. After one exchange, the order was locked, preventing any further exchange-related actions.
To understand why classic Shopify exchange was so limiting and why Shopify made such a dramatic change, let's first walk through a scenario where classic exchanges hindered customer experience.
In the classic Shopify exchange process, once an exchange is created, it is treated as a separate order. This splits the customer’s balance into separate amounts, which cannot be combined for another exchange.
For example,
1. A customer places an order for two items: a T-shirt for $40 and jeans for $60. The order total is $100.
2. Later, the customer returns the T-shirt for $40 and exchanges it for a sweater worth $50.
3. To complete the exchange order, $40 of exchange credit comes from the original order, and the customer pays the additional $10.
Workarounds With Classic Shopify Exchanges
Now, imagine the customer wants to exchange both the jeans (Order 1) and the sweater (Order 2) for a new jacket worth $110.
Here’s the problem: Because these balances are tied to different orders, they cannot simply be combined to place a new exchange order.
Retailers tried alternative solutions to overcome this limitation, but these approaches came with their own set of challenges.
To solve this problem, retailers found a way to process exchanges using gift cards. Instead of directly exchanging items across multiple orders, they refunded the amount of returned items to gift cards. This allowed customers to use the gift card balance to place a new exchange order without being restricted by separate order balances.
Steps in the Gift Card Exchange Process:
1. The customer returns the jeans (Order #1) and the sweater (Order #1002) to the store.
2. The store staff processes each return separately and issues two gift cards, one for $60 from Order #1001 and another for $50 from Order #1002.
3. The customer then uses these gift cards separately to place a new exchange order for the jacket (Order #1003) worth $110.
However, this method had its drawbacks:
1. The refund could not go back to the customer’s original payment method once applied to a gift card.
2. The new order had no lineage traceability unless manually commented by store staff.
3. The gift card process is cumbersome, slow and difficult to train stores on.
Recognizing these pain points, Shopify exchange v2 was introduced.
What Is Shopify Exchange v2 and How It Fixes These Challenges
The new flow removes almost all restrictions in the returns and exchange process by always keeping all returns and exchanges linked to the same order in Shopify. Making this change, while conceptually simple, creates a dramatically better experience for store staff and customers.
Store staff are now able to view a customer’s entire timeline of returns and exchanges against an order in a simple chronological view, enabling them to provide a much better clienteling experience. By keeping all payments tracked in the same order, customers always have the ability to reuse their funds for a new item or get a refund to their original payment method.
Financial Posting of Shopify v2 Returns and Exchanges
While Shopify exchange v2 brings many improvements for users on all sides, it also introduces new technical challenges when trying to track the finances of an order that’s indefinitely updatable.
-
Impact on Accounting and Order Closure
Accounting platforms like NetSuite typically close orders once they are invoiced. Since Shopify exchange v2 keeps orders open for returns and exchanges, the integration of Shopify and NetSuite needs to be updated to automatically create new orders in NetSuite wrt exchanges created in Shopify.
-
Complexity of Returns Across Multiple Orders in Accounting System
A single return from Shopify exchanges v2 may now include items from multiple orders created in accounting systems like NetSuite. Integrations need to have the ability to correctly split and map returns to their respective orders in accounting systems.
* * *
We’ll cover how integrations between Shopify and account systems like NetSuite should be set up to ensure general ledger impacts are balanced and payouts reconcile with Shopify in our upcoming blog: Challenges of integrating Shopify Exchanges V2.
To get started, contact an expert now!
