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How to Create an Exchange Order

ShipHero lets you create an Exchange RMA and manage the release of the exchange order once the return is received. This article walks you through both steps.

For general RMA instructions, see How to Create Returns in ShipHero.

Things to Consider

Important

Exchange orders are only created when you manually generate an Exchange RMA in ShipHero. If a customer selects Exchange through the ShipHero iframe on your store platform, a standard RMA is created with the Exchange return type noted — but no exchange order is generated.

Exchange order behavior also depends on two settings:

How to Create an Exchange RMA

When Exchange is selected as the Return Type, an additional section appears on the RMA page: Select Items to Send Customer in Exchange.

  1. Use the search bar to find and select the product(s) for the exchange. Adjust the quantity as needed and choose how inventory should be allocated.
  2. Confirm your customer information, select the Return to Warehouse option in Return Options, and configure your shipping options in the Shipping Info section.
  3. Click Generate RMA.

What Happens Next

After the RMA is generated, you'll be redirected to the original order details page, where you'll see:

  • The RMA listed in the Returns section.
  • A link to the exchange order in the Order History section.

Exchange orders are created with the status Exchange and the prefix EXC-. This status prevents the order from entering pick and pack flows until it is manually released from the RMA.

An exchange order with Ready to Ship: Yes can still be manually pulled up in the packing flow and processed, even while its status is Exchange.

On the RMA page, the Exchanges section lets you view the exchange order, check its current status, and use the Release Exchange or Cancel Exchange buttons.

If the exchange order's status is changed manually or via an automation rule, the Release Exchange and Cancel Exchange buttons are removed from the RMA page.

Releasing an Exchange Order

Exchange orders can be released at any time — you don't need to wait for the return to be fully received or processed. This gives your team flexibility to improve the customer experience.

Common release scenarios:

  • The return tracking has been updated.
  • The item was damaged in transit or had a malfunction.
  • The return has been received, inspected, and restocked.

To release, click Release Exchange in the Exchanges section on the RMA details page. The order status updates to Default and the warehouse team can begin processing.

Exchange Order Allocation

When generating an Exchange RMA, you can choose whether inventory is allocated immediately or held until you manually release the exchange order.

By default, inventory is allocated at creation. To hold inventory instead, check the box for:

"Do not allocate product to exchange order, until exchange order is manually released to ship."

When this option is enabled, line items show a status of Exchange until the order is released from the RMA page, at which point they update to Pending.

Key Notes and Limitations

  • This setting only applies to items added via the RMA generation page. Items added manually or through automation rules will show as Pending until fulfilled.
  • Manually changing the status of an exchange order while items are in Exchange status will set the order to Fulfilled. To process the order, use the Reship action to return it and its line items to Pending.

Automation Rules and Exchange Orders

Automation rules do not run for exchange orders by default. To enable them, go to My Account > Settings and enable "Process automation rules for exchange orders."

Key Notes and Limitations

  • If "Do not allocate inventory..." is selected, automation rules with warehouse allocation or backorder triggers will not run for that exchange order.

    To fix this: Make the required adjustments to the exchange order manually.

  • If "Do not allocate inventory..." is selected and an automation rule changes the exchange order's status, the Release Exchange and Cancel Exchange buttons are removed from the RMA page.

    To fix this: Manually update the order status (it will auto-set to Fulfilled since there are no pending line items), then use the Reship action to return the order and line items to Pending.

  • If an automation rule uses the "Set Custom Status" action, it will overwrite the Exchange status. The order will appear in picking queues if Ready to Ship is also set to Yes.

    To prevent this: Add the condition "Order Number: Does not start with: EXC-" to any rule using the "Set Custom Status" action.

  • Automation rules with "Only run after MWA rules" enabled will still run on exchange orders, even if "Process automation rules for exchange orders" is disabled.

    To prevent this: Add the condition "Order Number: Does not start with: EXC-" to those rules.

More Resources

  • ShipHero Public API

    Connect your tools and AI agents directly to ShipHero with the Public API. Build powerful integrations, automate workflows, and tap into real-time data using the AI tools you prefer, with the option for secure, read-only access for AI-driven insights without added risk.

  • ShipHero Academy

    Explore ShipHero Academy for certifications, deep-dive training, and expert-led courses on WMS and fulfillment. Build your expertise and help your team operate at a higher level.

  • Change Log

    Stay up to date with the latest improvements across ShipHero. The Change Log gives you a clear view of new features, enhancements, and fixes as they roll out—so you always know what’s new and what’s better.