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Ecommerce

Returns & Refund Tracker

Every return logged, categorized, and reported — so you see why things come back.

Saves about ~2 hrs per week

What it does

  • Captures every return and refund automatically
  • Categorizes return reasons with AI
  • Logs everything to a sheet with product context
  • Flags products with a suddenly rising return rate

How it works

  1. Return created in Shopify
  2. Reason captured and categorized
  3. Sheet updated with product and reason
  4. Rising-risk products flagged

What's included

  • Return capture
  • Reason categorization
  • Risk flagging

Set it up yourself

Follow these 4 steps in order. You will need accounts for: Shopify, Sheets.

Step 1: Connect Shopify returns

  1. Add read_orders and read_returns (or read_order_edits) scopes to your custom app.
  2. Add a trigger 'return created' or poll the returns endpoint.
  3. Capture: order ref, product, return reason, status.
  4. Test an actual return comes through.
  5. Note the reason field's raw text — it feeds the categorizer.

Watch out: Capture the raw reason text, not a literal interpretation — 'too big' vs 'not as described' need real categorization.

Step 2: Add the reason classifier

  1. Build: 'Categorize this return reason: size, quality, damage, not-as-described, changed-mind, duplicate, other. Return JSON: {category, confidence}'.
  2. For free-text reasons, the AI maps to your categories.
  3. Keep 'other' honest — don't force everything into a bucket.
  4. Paste with API key.
  5. Test on 20 historical returns.

Watch out: If the AI over-fits to 'other', tighten your category definitions — your reports are only as good as the buckets.

Step 3: Build the tracking sheet

  1. Columns: Date, Order, Product, Variant, Reason, Category, Refund Amount, Status.
  2. Append a row per return with the categorized reason.
  3. Add a pivot sheet for 'returns by category %'.
  4. Add 'returns by product' view.
  5. Keep the raw reason column as the source of truth.

Watch out: Keep raw + categorized columns side by side — when a category looks wrong, you can see why.

Step 4: Set the risk rule

  1. Alert when a product's 30-day return rate exceeds your threshold (e.g. 8%).
  2. Add a second rule: a category spike (e.g. 'damage' doubling month over month).
  3. Post alerts to Slack or email.
  4. Weekly summary: top returning products + reasons.
  5. Use the summary to fix products (description, quality, sizing) rather than just track.

Watch out: The reason can only be fixed if you act on the summary — a tracker that just compiles is a report nobody reads.

Frequently asked questions

What does the Returns & Refund Tracker automation do?

Every return logged, categorized, and reported — so you see why things come back. Captures every return and refund automatically

How much time does Returns & Refund Tracker save?

It is estimated to save ~2 hrs per week. Actual savings depend on your volume.

Which tools does Returns & Refund Tracker use?

It works with Shopify and Sheets.

What does Returns & Refund Tracker include?

Return capture, Reason categorization, Risk flagging.

Can I set up Returns & Refund Tracker myself?

Yes. The do-it-yourself guide on this page walks through 4 steps, from getting access to testing the finished automation.