Articles on: Returns Management

How Does Pre-discount Credit Work When Customers Exchange For Other Items?

Merchants can now enable the pre-discount credit feature with AfterShip Returns Center. It gives shoppers the credit according to the original value of an item, instead of the discounted value they paid. It means they have a little extra to spend when doing an exchange. This help guide will explain how pre-discount credit works.

Tax value isn’t included in the pre-discount credit.

➡️ Steps to enable pre-discount credit

Go to the Returns settings of your AfterShip Returns Center account

Check the Settings in the Exchange for other items section

*Under pre-discount credit, select Enabled

Voilà! It’s done

🤔 What will happen if I enable both pre-discount credit and extra credit?

Pre-discount credit will be applied first and then extra credit if necessary.

You can check the applied credits from your AfterShip Returns Center dashboard. Just go to Returns and click on any return request. Now, look for Credit for exchange and then click Show credits

👀 How is pre-discount credit going to work for my shoppers?

Let’s suppose a shopper got a 20% discount on a product worth $100. It means he paid $80 to purchase that particular product. However, for some reason, he wants to exchange it with any other product. Now, if you’ve enabled the pre-discount credit feature, these 3 cases are likely to happen.

Case 1: Shopper wants to exchange with a cheaper product

Your shopper will get a $100 pre-discount credit. But if he/she wants to get a $60 item in exchange, you’ll only have to refund $20 as an amount or store credit since he/she originally paid $80 to you.

Case 2: Shopper wants to exchange with a bit of expensive product

If the shopper wants to get a $90 item in exchange, he doesn’t have to pay anything to you, since he/she has the pre-discount credit of $100.

The remaining $10 pre-discount credit can’t be used next time. Also, the pre-discount credit only applies to the order value, which means it can't be used to adjust the cost of return.
Case 3: Shopper selects a premium product for an exchange

If the shopper wants to get a $120 item in exchange, he has to pay $20 to you, as the pre-discount credit is only $100.

Besides the extra $20, the shopper may have to pay tax and the cost of the return if applicable.
For any questions, contact our chat support team

Updated on: 15/06/2022

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