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Buy with Prime refunds with promotions

This article covers refund calculation methodology for Buy with Prime orders with discounts.

This article describes how refunds are calculated when shoppers return products. Merchants can setup promotions using the Shopify admin.

Note: Setting up promotions has been deactivated in the merchant console.

Shoppers purchasing products through Buy with Prime can get these discounts at checkout. Shopper can redeem discounts with a coupon or automatically when their order meets the criteria set for a promotion campaign.

Note: As part of the automated refund calculation and reimbursement for Buy with Prime orders, all item-level charges are fully refundable. Taxes and fees that aren’t imposed for a specific item aren’t automatically refunded. Merchants need to manually issue refunds at their own discretion from Shopify admin.

The following scenarios describe discount types and refund calculation that are limited to a single product checkout:

Product discount
Order discount
Buy X Get Y

  • Sample scenario 1: Full order return.
  • Sample scenario 2: Partial return.
  • Sample scenario 3: Partial return on a promotion order plus a regular price item.

Buy X Get Y Free

  • Sample scenario 1: Full order return.
  • Sample scenario 2: Partial return.
  • Sample scenario 3: Partial return of a promotion order with a regular priced item.

Stacked promotions

  • Sample scenario 1: Full order return.
  • Sample scenario 2: Partial return.

Note: There are other attributes such as returned product condition, vendor specific return policies, and others that determine the return eligibility and ability for shoppers to get a refund. Those conditions aren’t covered in this article.

Learn more about the Buy with Prime app for Shopify.

When you complete checking refunds with promotions, go back to the Buy with Prime app for Shopify main menu.

Buy with Prime app for Shopify main menu

Product Discount

This discount can be either an amount or a percentage applied to a product or a collection of products. The discount is applied to specific items that qualify for the discount. When shoppers return a full or partial order, their refund is calculated based on the item value adjusted by the discount amount.

Sample scenario: A shopper buys a pair of shoes for $100 with a 10% discount.

Return: Full order.

Product price: $100 for each pair of shoes.

Discount: 10% discount.

Order total amount: $90 ( $100 product price - $10 discount).

Refund after product return: $90 ( $100 product price - $10 discount).

Taxes: If the customer paid sales tax for the order, they get a sales tax refund on the $90.

Order Discount

This type of discount applies to the entire order. If the order has more than one unit, the discount is proportionally distributed among all units in that order. When a return is initiated, the shopper is refunded for the order amount adjusted by the discount applied.

Sample scenario: A shopper buys two pairs of shoes, each for $100 with a $10 discount per order. Then the shopper returns only one pair.

Return: Partial.

Product price: $100 for each pair of shoes.

Discount: $10 discount per order.

Order total amount:

  • 2 pairs x $100 price per pair = $200.
  • $200 for two pairs - $10 discount.
  • $190 order total.

Refund after returning one pair:

  • $10 discount divided by 2 pairs = $5.
  • $100 price per pair – $5 discount.
  • $95 total refund for one pair.

Taxes: If the customer paid sales tax for the order, they receive a sales tax refund on the $95.

Buy X get Y Discount

With this type of discount, shoppers get items for discounted price (% off) when they meet the promotion criteria.

Note: Merchants can setup this type of promotion to apply when a shopper buys one product and gets a different product at a discount. However, this article only describes the scenario when a product is purchased and the same product is offered at a discount.

Sample scenario 1: Full order return.

Shopper buys 3 pairs of shoes. The entire order is returned. Shopper receives the total amount they paid for the order.

Product price: $150 for each pair of shoes.

Discount: Buy two Get one 50% off

Order total amount:

  • First 2 pairs of shoes x $150 price per pair = 2 x $150 = $300
  • Third pair of shoes at 50% discount: $150 price per pair x 50% = $75
  • $300 for the first two pairs + $75 for the third pair
  • Total order: $375 for three pairs of shoes.

Refund after returning entire order: $375.

Taxes: If the customer paid sales tax for the order, they receive a sales tax refund on the $375.

Sample scenario 2: Partial return.

A shopper buys 3 pairs of shoes and returns only one.

Note: On orders partially returned, the price of the discounted item is proportionally allocated across all items in the order based on the allocated discount.

Product price: $150 for each pair of shoes.

Discount: Buy two Get one 50% off

Order total amount:

  • First 2 pairs of shoes x $150 Price per pair = 2 x $150 = $300
  • Third pair of shoes at 50% discount = $150 price per pair x 50% = $75
  • Total order: $300 for the first two pairs + $75 for the third pair
  • Total order: $375 for three pairs of shoes.

Refund after returning only one pair:

  • Full order discount: $75 ($150 price per pair x 50% discount).
  • Discount divided by 3 pairs: $75 / 3 = $25
  • Price of returned single pair $150 - $25 discount on one pair = $125.
  • $125 total refund for one pair.

Taxes: If customer paid sales tax for the order, they receive a sales tax refund on the $125.

Sample scenario 3: Partial return on a promotion order with a regular price item

A shopper buys four pairs of shoes with a Buy two Get one 50% off. The shopper only returns one pair.

Note: When a regular priced item is bought in addition to Buy X Get Y discount items, the discount or free item value is allocated across all the items in the order as long as the item is in the participating list.

Product price: $150 for each pair of shoes.

Discount: Buy two Get one 50% off

Order total amount:

  • First 2 pairs of shoes x $150 Price per pair = 2 x $150 = $300
  • Third pair of shoes at 50% discount = $150 price per pair x 50% = $75
  • $300 for the first two pairs + $75 for the third pair = $375
  • Plus a fourth pair at a regular price: $375 for three pairs + $150 regular price on the fourth pair = $525
  • Total order: $525 for four pairs of shoes.

Refund after returning only one pair:

  • Full order discount: $75 ($150 price per pair x 50% discount).
  • Discount divided by 4 pairs: $75 / 4 = $18.75
  • Price of returned single pair $150 - $18.75 discount on one pair = $131.25.
  • $131.25 total refund for returning one pair out of four.

Taxes: If the customer paid sales tax for the order, they receive a sales tax refund on the $131.25.

Buy X get Y free

With this type of discount, shoppers get item(s) for FREE when they meet the promotion criteria.

Note: Merchants can setup this type of promotion to apply when a shopper buys one product and gets a different product at a discount. However, this article only describes the scenario when a product is bought and the same product is offered free of charge.

Sample scenario 1: Full order return.

A shopper buys 3 pairs of shoes. The entire order is returned, shoppers receive the total amount they paid for that order.

Note: If the entire order is returned, shoppers receive the total amount they paid for the order.

Product price: $150 for each pair of shoes.

Discount: Buy two Get one free.

Order total amount:

  • First 2 pairs of shoes x $150 Price per pair = 2 x $150 = $300
  • Third pair of shoes free.
  • $300 for two pairs + 1 pair for free = $300
  • Total order: $300 for three pairs of shoes.

Refund after returning entire order: $300.

Taxes: If the customer paid sales tax for the order, they receive a sales tax refund on the $300.

Sample scenario 2: Partial return

A shopper buys 3 pairs of shoes, two at a regular price and one for free. Order is partially returned.

Note: If the order is partially returned, then the price of the free item is proportionally allocated across all items in the order and the refund is adjusted based on the allocated discount.

Product price: $150 for each pair of shoes.

Discount: Buy two Get one free.

Order total amount:

  • First 2 pairs of shoes x $150 Price per pair = 2 x $150 = $300
  • Third pair of shoes is free.
  • $300 for two pairs + 1 pair for free = $300
  • Total order: $300 for three pairs of shoes.

Refund after returning only one pair:

  • Full order discount: $150 discount for the free third pair.
  • Discount divided by 3 pairs: $150 / 3 = $50
  • Price of returned single pair $150 - $50 discount on one pair = $100.
  • $100 total refund for one pair.

Taxes: If the customer paid sales tax for the order, they receive a sales tax refund on the $100.

Sample scenario 3: Partial return with a regular priced item.

A shopper’s buys four pairs of shoes with a Buy two Get one free promotion. The shopper returns only one pair.

Note: The discount or free item value is allocated across all the items in the order as long as the item is in the participating list.

Product price: $150 for each pair of shoes.

Discount: Buy two Get one free.

Order total amount:

  • First 2 pairs of shoes x $150 Price per pair = 2 x $150 = $300
  • Third pair of shoes is free.
  • $300 for two pairs + 1 pair for free = $300
  • $300 for three pairs of shoes + $150 for one pair at a regular price = $450.
  • $450 order total.

Refund after returning only one pair:

  • Full order discount: $150 discount for the free third pair.
  • Discount divided by 4 pairs: $150 / 4 = $37.5
  • Price of returned single pair $150 - $37.5 discount on one pair = $112.50.
  • $112.50 total refund for one pair.

Taxes: If the customer paid sales tax for the order, they receive a sales tax refund on the $112.50.

Stacked Promotion

Merchants can setup discounts that can be stacked or applied on top of other discounts. These can be either product, order or Buy X and Get Y. In such situations, the discount amount is proportionately allocated across all participating products in the order.

Sample scenario 1: Full order return.

A shopper buys three pairs of shoes with a Buy two Get one 50% off promotion. The shopper also uses a 10% off coupon. The entire order is returned, shopper receives the total amount they paid for that order.

Product price: $150 for each pair of shoes.

Discount: Buy two Get one 50% off plus 10% off coupon.

Order total amount:

  • First 2 pairs of shoes x $150 Price per pair = 2 x $150 = $300
  • Third pair of shoes at 50% discount: $150 x 50% = $75.
  • $300 for two pairs + $75 for one pair at 50% discount = $375
  • 10% discount per product = (3*150*10%)= $45
  • Total Order amount = $375-$45
  • $330 order total.

Refund after returning full order: $330 refund for full order return.

Taxes: If the customer paid sales tax for the order, they receive a sales tax refund on the $330.

Sample scenario 2: Partial return.

A shopper buys three pairs of shoes with a Buy two Get one 50% off promotion. The shopper also uses a 10% off coupon. Shopper returns only one pair.

Product price: $150 for each pair of shoes.

Discount: Buy two Get one 50% off plus 10% off coupon.

Order total amount:

  • First 2 pairs of shoes x $150 Price per pair = 2 x $150 = $300
  • Third pair of shoes at 50% discount: $150 x 50% = $75.
  • $300 for two pairs + $75 for one pair at 50% discount = $375
  • 10% discount per product = (3*150*10%)= $45
  • Total Order amount = $375-$45
  • $330 order total.

Refund after returning only one pair:

  • Total discount: $75 + $45 = $120
  • Per unit discount = Total discount of $120 /3 = $40
  • Refund = 150- 40= $110.
  • $110 total refund for one pair.

Taxes: If the customer paid sales tax for the order, they receive a sales tax refund on the $110.