Shopify Store Credit: All You Need to Know

Every Shopify business owner wants to see their business grow, but creating new strategies can be overwhelming. How can you make both yourself and your clients happy? Here’s a hint: try adding store credits. Want to know more about what store credits are, how they work, and how to use them? Let’s find out.

Key takeaways:

1. Store credits are the points that a seller can give to a customer instead of a cash refund.
2. Once store credits are received, it can only be used at that specific store, which means the business keeps the money even if a customer returns something.
3. There are different types of store credits: returns and exchanges, gift cards, store credit cards, and loyalty rewards.
4. Store credits in Shopify help increase customer loyalty and sales by encouraging customers to return and spend more.

Contents:

1. What is Shopify store credit?

2. Types of store credits

3. How does it work?

4. What are the benefits of Shopify store credits?

5. How to account for Shopify sales, refunds and gift cards?

What is Shopify store credit?

Shopify store credits are a form of digital currency or points that a business can offer to customers instead of or along with providing a cash refund when they return an item. These credits can only be used within that specific Shopify store, allowing customers to make future purchases without needing to spend additional money. 

Types of store credits

Store credits typically come in four main types. As a Shopify merchant, you can choose the one that best suits your business, but to make the right choice, you need to understand each option:

Returns and exchanges

When customers return or exchange items, they might receive store credit either instead of or in addition to a full refund. For instance, if a client returns a $30 skirt, they could exchange it for a different size and get $7 in store credit to encourage another purchase.

Gift cards

Gift cards are a common thing for Shopify stores. You can issue gift cards to your clients and it’ll mean that they’re buying store credit to give it to someone else. A gift card can be a digital code or a physical card, which the recipient can use to get a discount at the store.

Gift cards are also used to store credit from returns or loyalty rewards. 

Buy now, pay later

This option includes store credit cards, financing and layaway. They’re usually grouped together because the main idea is the same, but different stores offer different options for their customers. 

For example, if a customer uses a store credit card to buy a $200 jacket, they don’t have to pay the full amount right away. Instead, they can make smaller payments over time, like $50 per month, until the total is paid off. 

Loyalty rewards

Loyalty rewards are incentives that encourage customers to keep coming back to your store. When you offer a loyalty program, customers can earn rewards for their continued shopping. 

For example, a customer might receive a reward after spending $50 in your store or making five purchases. These rewards can come in various forms, such as discounts, points that can be redeemed for store credit, or exclusive offers that create a base of loyal customers.

How does it work? 

Now that we understand what online store credit on Shopify is, it’s time to learn how it works. The most common question is how to add this option to customer accounts. Let’s find out.

How to add Shopify store credit to your customer account?

To issue Shopify store credit to the customer, follow these steps: 

• From your Shopify admin panel, go to the Customers section;
• Click on the profile of the customer you want to issue store credit for;
• In the Store credit section, click on Edit;
• In the Adjustment section, select Credit;
• If your store supports multiple currencies, choose the currency for the store credit from the Currency drop-down menu;
• In the Amount field, type in the value of the credit you want to issue;
• Click Review changes to confirm everything is correct;
• Finally, click Credit {Amount} to issue the store credit.

How to delete Shopify store credit from your customer account?

If it’s time to remove store credit from customer account, then you can do this:

• In your Shopify admin, go to Customers;
• Select the customer profile you want to debit store credit from;
• In the Store credit section, click Edit;
• In the Edit balance dialog, choose Debit under Adjustment;
• If the customer has credit in multiple currencies, select the currency you want to debit;
• Enter the amount to debit in the Amount field;
• Click Review changes to confirm;
• Choose Debit to reduce the customer’s store credit balance.

What are the benefits of Shopify store credits? 

1. Customer retention

Store credits motivate customers to return to your store to use their credit, which can lead to repeat purchases. This way you’ll receive a loyal audience that’ll use your services regularly. 

2. Refund reduction

You can offer your customers more options, such as providing store credits or giving cash refunds. This increases the chances of keeping money in your business and may help you maintain cash flow.

3. Boosted sales

Customers often spend more than the value of their store credit, leading to higher sales.This additional spending contributes to overall business growth.

4. Improved customer experience

Store credit process gives customers a flexible option when returning items, which can make them happier with your service. This flexibility can also increase their trust and loyalty to your brand.

How to account for Shopify sales, refunds and gift cards?

Running an online business comes with a lot of responsibilities. From selecting products to sell on Shopify to finding suppliers and managing logistics, there’s a lot to juggle. 

Now that you’ve implemented the Shopify store credit system and built up your loyal customer base, it’s time to manage the information from their purchases effectively. To do this, you’ll want to regularly check Shopify store revenue to monitor performance and ensure your sales and credits are balanced. What it means is that one of the biggest ecommerce challenges is accounting. You might think it’s straightforward, but it’s far more complex than it seems.

But don’t worry — Synder is here to help you conquer this challenge. Think of it as your sword, with its powerful features as your armor, ready to make accounting a breeze.

How will this accounting automation software assist you? After connecting to Synder, you’ll be able to sync the data from Shopify to QuickBooks Online, QuickBooks Desktop, Xero or Sage Intacct. And it’s not only about syncing the data; you’ll also get those features: 

• Error-free reconciliation;
• Data categorization;
• Import of both current and historical transactions;
• Gift cards tracking;
• Management of manual/POS orders and refunds.

Note: With the extra settings for POS orders and refunds enabled, Synder can track Shopify Point of Sale orders and sync them with your accounting system.

By integrating Synder into your Shopify accounting, you streamline your workflow by making tasks like recording store credit easier.

Conclusion

Managing an online store comes with many challenges, but using store credits can make a big difference. They help keep customers loyal, reduce refunds, boost sales, and make handling returns easier. For those who are just starting out or looking to expand quickly, there are websites to prebuild Shopify stores, which allow you to hit the ground running with a fully functional store ready to launch. With the right approach, you can turn store credits into a powerful tool for growing your business.

Don’t let the complexities of running an online store overwhelm you. By staying organized and using smart strategies like store credits, you can focus on what really matters — keeping your customers happy and your business thriving. To optimize the entire process, you can add automation to the workflow. When you do, you’ll definitely notice the difference. So, are you ready to take your Shopify store to the next level? 

Share your thoughts 

We’d love to hear your experiences with using store credits in your Shopify store. Have you seen an increase in customer loyalty or sales? What challenges have you faced, and how have you overcome them? Share your insights and tips with us.