Refunds and Returns

This guide explains how refunds and returns work for orders that have been processed by BundlesIQ, and what to expect in each handling mode.

What You Will Accomplish

You will understand how to handle refunds and returns for bundle orders, including partial refunds, and what each handling mode means for the refund workflow.

How Refunds Work After Bundle Processing

After BundlesIQ transforms an order, the order contains component line items (and possibly the bundle line, depending on your handling mode). Refunds are processed through Shopify's standard refund workflow, but the line items you refund depend on your handling mode.

Refund Behavior by Handling Mode

Parent-Only (BOM) Mode

In Parent-Only mode, only the bundle line item exists on the order — there are no component line items.

To refund the full bundle:

1. Open the order in Shopify Admin
2. Click Refund
3. Select the bundle line item and its full quantity
4. Process the refund

Inventory impact: BundlesIQ automatically releases the reserved component inventory back to available when a Parent-Only order is refunded or cancelled. If the order was already fulfilled (reserved stock was consumed), BundlesIQ restocks the component quantities.

To refund a partial bundle (one component):

Partial component-level refunds are not directly supported in Parent-Only mode because components do not appear on the order. You can:

• Option A: Refund a custom dollar amount from the bundle line using Shopify's manual refund feature
• Option B: Refund the full bundle and re-create a new order with the adjusted items

Because Parent-Only mode does not add component line items to the order, inventory restocking for components is handled by BundlesIQ (not Shopify's built-in restock). Ensure BundlesIQ is active when processing refunds.

Hybrid Mode

In Hybrid mode, the bundle line is at $0 and components carry the prices.

To refund the full bundle:

1. Open the order in Shopify Admin
2. Click Refund
3. Select all component line items and their full quantities
4. Confirm the refund amount matches the original bundle price
5. Process the refund

To refund a partial bundle (one component):

1. Select only the specific component line item(s) to refund
2. The refund amount reflects the component's allocated price (not the full bundle price)

The $0 bundle label line does not need to be refunded since it has no value.

Operational Mode

In Operational mode, only priced component line items exist on the order.

To refund the full bundle:

1. Open the order in Shopify Admin
2. Click Refund
3. Select all component line items that were part of the bundle
4. Confirm the total refund matches the original bundle price
5. Process the refund

To refund a partial bundle (one component):

1. Select the specific component line item(s)
2. The refund amount reflects the component's allocated price

In Operational mode, there is no bundle line on the order. To identify which components belong to a bundle, check the order metafield bundles_iq.transformation_audit or the BundlesIQ Health dashboard.

Reporting Mode

In Reporting mode, the bundle line carries the full price and components are at $0.

To refund the full bundle:

1. Open the order in Shopify Admin
2. Click Refund
3. Select the bundle line item and its full quantity
4. The refund amount is the bundle price
5. Process the refund

To refund a partial bundle (one component):

This is more complex in Reporting mode because components are at $0. You have two options:

• Option A: Refund a custom amount by clicking Refund and manually entering the dollar amount for the component (based on its allocated value from the bundle)
• Option B: Refund the full bundle and re-create a new order/draft with the remaining items

Partial refunds in Reporting mode require manual calculation because Shopify does not know the individual component values (they are all $0 on the order).

Refund Summary by Mode

Inventory Impact of Refunds

When you process a refund in Shopify with the "Restock items" option:

• Component inventory is restocked by Shopify based on the refunded component line items
• Bundle inventory is recalculated by BundlesIQ when the component inventory webhook fires (if inventory sync is enabled)

In Reporting mode, if you refund the bundle line item, Shopify restocks the ghost SKU variant. BundlesIQ's inventory sync will then set it back to the calculated availability on the next sync cycle.

Returns Workflow

For stores using Shopify's returns workflow:

1. Create a return from the order in Shopify Admin
2. Select the line items being returned (components in Hybrid/Operational, bundle line in Reporting)
3. Process the return and restock as appropriate
4. Issue a refund for the returned items

The same mode-specific guidance applies: in Hybrid and Operational modes, you work with component line items. In Reporting and Parent-Only modes, you work with the bundle line item.

Exchanges

If a customer wants to exchange a bundle for a different bundle:

1. Process a return/refund for the original bundle order (following the mode-specific steps above)
2. Create a new order (or draft order) with the replacement bundle
3. BundlesIQ will process the new order automatically

What to Expect After a Refund

Common Mistakes

• Refunding the $0 bundle line in Hybrid mode — This has no financial effect since it is $0. Refund the component lines instead
• Not restocking components in Reporting mode — When you refund the bundle line, make sure to also restock the component variants (which are listed at $0 but still represent physical inventory)
• Assuming BundlesIQ re-processes after a refund — BundlesIQ does not modify orders during refunds. Refunds follow Shopify's standard flow on the already-transformed order

Troubleshooting

Related Pages

• How Orders Look in Each Mode
• Handling Modes Explained
• Inventory Rules