
How to Retain Revenue with Product Exchanges Over Refunds
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Make returns profitable and delight customers
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Simplify returns for your customers and team
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Make returns profitable and delight customers
Flexibility to define any return destinations & conditions
Simplify returns for your customers and team
Incentivize exchanges over returns
Returns management made easy for your team
Equip your team for precise return checks.
Understand why your customers are returning
Unify the online and the in-store experience
Hassle-free pickup experience for customers
In-Store Dashboard to keep operations streamlined
In-Store and Online orders unified
Drive foot-traffic to your stores
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Buy One, Get One (BOGO) promotions are a powerful marketing tool for eCommerce and retail businesses. They offer an enticing deal to customers: buy one product, and receive another at a discounted price—or even for free. Companies use BOGO deals as a strategy to drive sales, clear out excess inventory, or introduce new products to the market. On the surface, it’s a win-win. The business boosts order volume and moves more inventory, while the customer feels like they’re getting more value for their money.
From the consumer perspective, BOGO deals are attractive because they provide additional products or savings, influencing purchasing decisions and increasing perceived value. But what happens when the customer wants to return part of a BOGO deal?
In this article, we’ll break down how to create and enforce a fair, transparent BOGO return policy that doesn’t penalize customers for honest returns but also doesn’t leave your business footing the bill for lost inventory.
BOGO promotions appeal to customers for a simple reason: they create a sense of immediate value. Instead of just reducing the price of an item, BOGO deals give shoppers something extra more products, more savings, or both. A bogo offer, or “buy one, get one” deal, is structured so that when a customer purchases a qualifying item, they receive an additional item either for free or at a discount, according to the specific terms of the promotion. For example, a customer might:
Buy one T-shirt and get another of equal or lesser value for free.
Buy one skincare product and get 50% off the second.
Purchase one item at full price and get a second through a manufacturer coupon.
Bogo offers can vary in their terms and eligibility, such as requiring the purchase of specific products, setting limits on quantities, or specifying a promotional duration.
Offering carbon-neutral shipping is another vital step. Brands can partner with carriers that provide carbon offset programs or invest in their own green logistics initiatives, such as electric delivery vehicles or solar-powered warehouses. But it’s not just about implementation it’s also about communication. Clearly showcasing these efforts on product pages, checkout screens, and post-purchase emails builds trust and strengthens brand loyalty.
These promotions work across industries from fashion to personal care, groceries to pet supplies because they’re so easy to understand and feel generous. Shoppers may also use BOGO deals to stock up on essentials, try new products, or make larger purchases than they otherwise would.
From a business standpoint, BOGO promotions help increase average order value, clear out older inventory, and boost brand loyalty. However, their complexity starts to show during the return phase especially when one part of the pair is returned, or if customers misunderstand the rules of the deal. A seller might choose to run a BOGO promotion to efficiently manage inventory levels or to drive higher sales volume during a specific promotional period.
Returns are a natural part of eCommerce, but when it comes to BOGO deals, they present unique logistical and financial challenges. For example, if a customer buys two items under a “Buy One, Get One Free” offer and then returns the one they paid for should they be allowed to keep the free item? While BOGO deals can seem attractive, sometimes a straightforward, cheaper discount is more transparent for both the business and the customer.
If the answer is yes, the business eats the full cost of the free product. If the answer is no, the customer may feel the store is being unfair or sneaky. Depending on the store’s policy, there may be specific circumstances under which a customer is allowed to keep the free item, such as if the item is perishable or cannot be resold. This is where return policies and how clearly they’re communicated can make all the difference.
Here’s the core dilemma:
You want to maintain trust and make returns easy.
But you also don’t want to lose money by letting customers keep free items without a qualifying purchase.
If BOGO returns are handled the wrong way, it can result in losses for the business or dissatisfaction for the customer.
Solving this requires a careful blend of policy clarity, technical automation, and good customer communication.
The best way to prevent BOGO return confusion is to start with a strong, transparent return policy that outlines how BOGO deals are handled. Here’s what to include:
Qualifying Criteria: Clearly state that the promotional pricing is dependent on purchasing both items, and note that terms may vary depending on the specific promotion.
Return Requirements: Specify that both the original and the second item must be returned to receive a full refund.
Partial Returns: Explain what happens if only one item is returned (e.g., refund will be prorated or store credit will be issued).
Exchange Rules: Outline how exchanges work for BOGO items whether price differences need to be paid or if substitutions are allowed.
Coupon and Discount Terms: Mention whether manufacturer or promotional coupons are applicable and how they affect returns.
Note: Special considerations or exceptions may apply, such as refund adjustments if the second item is not returned, or specific terms and conditions for certain promotions.
Be sure to review the BOGO return policy before making a purchase to fully understand the terms and conditions.
Clarity helps reduce disputes. Display this policy prominently on your website and at checkout when a customer adds BOGO items to their cart.
Managing inventory during Buy One, Get One (BOGO) returns is essential for keeping your store’s operations running smoothly and ensuring both your business and your customers are treated fairly. When a customer returns items from a BOGO deal, your store policy should clearly outline how inventory is handled, especially when it comes to the full-price item and the free item or the item of equal or lesser value.
To qualify for a full refund on a BOGO purchase, most stores require customers to return both items—the one they paid for and the free or discounted item. If only the full-price item is returned, the refund is typically reduced by the value of the free item, which may be half price or the price of the lesser value item, depending on the promotion. This ensures that customers don’t receive a free item without meeting the terms of the deal, and it protects your store from unnecessary losses.
A reliable inventory management system is crucial for tracking BOGO items throughout the sale and return process. This system should record the price paid, the full price, and any discounts applied at the point of sale. When a return is initiated, your staff can quickly verify the original purchase, check the receipt, and determine the applicable refund or store credit. This transparency helps prevent trouble or misunderstandings and ensures that refunds are processed accurately according to your store policy.
It’s also important to be aware of potential issues, such as customers attempting to return only one item from a BOGO deal and keeping the free item. To prevent this, your system should require both items to be returned together for a refund or exchange. If only one item is returned, the refund should be adjusted to reflect the price paid for the remaining item, or store credit can be offered for items of equal or lesser value.
Efficiently managing inventory during BOGO returns also means considering the cost of processing returns and exchanges. This includes restocking items, handling refunds, and managing customer service inquiries. Offering store credit or exchanges for eligible items can help minimize these costs while still providing value to your customers.
By maintaining accurate inventory records, enforcing clear return policies, and offering flexible options like store credit or exchanges, your store can handle BOGO returns efficiently. This not only helps you avoid inventory discrepancies and financial losses but also ensures a positive experience for customers who participate in your BOGO promotions. Ultimately, effective inventory management during BOGO returns supports both your bottom line and your reputation for fair, customer-friendly service.
Let’s walk through a few common BOGO return situations and how to handle them fairly. Customers may spend more to take advantage of BOGO deals, as these promotions often encourage purchasing additional items to maximize value. By combining BOGO deals with other offers or coupons, shoppers can save even more money on their purchases. Please note that BOGO discounts typically do not apply to tax calculations—tax is calculated based on the original price before any promotions are applied.
The customer returns both items from a “Buy One Get One Free” order. In this case, they receive a full refund for the amount they paid. Simple and fair.
The customer tries to return only the item they paid for, keeping the free one. Here, the refund should be adjusted to reflect that the conditions of the promotion weren’t met either deny the refund or subtract the value of the free item from the refund.
The customer returns only the free item. This is less common but should be allowed if the business wants to accept it. No refund is needed since the returned item had no value assigned.
If the customer is interested in exchanging one of the BOGO items, allow the exchange as long as the replacement is of equal or higher value. If it costs more, charge the difference.
Even with automation and clear policies, communication remains essential. Customers need to know the rules of the deal before, during, and after purchase. Here are some ways to make this happen:
At Checkout: Add messaging to BOGO-eligible items reminding customers of return conditions.
In Confirmation Emails: Include return policy highlights for orders with promotional pricing.
During Returns: Use your returns portal to notify customers if an item is part of a BOGO deal and what conditions apply.
In FAQs: Create a BOGO-specific FAQ section that answers common return questions.
Customers are more understanding when they feel informed. Proactive communication also reduces return fraud and minimizes policy-related complaints.
One of the biggest concerns with BOGO returns is abuse where customers intentionally return the paid item to keep the free one. It may not always be malicious, but it’s a problem nonetheless.
WeSupply helps prevent this with smart logic that:
Flags suspicious return patterns.
Prevents return requests for only part of a promotion.
Tracks customer behavior across orders.
Enforces eligibility criteria at the SKU and order level.
These features not only protect your revenue but also give your support team the insights they need to handle exceptions fairly.
When handling BOGO returns, you have options beyond full refunds:
Store Credit: Instead of offering a full refund, provide credit for the returned item’s prorated value. If a manufacturer’s coupon was used in the original purchase, the refund or exchange value may be adjusted to reflect the discount provided by the coupon. This keeps money in your ecosystem.
Exchanges: Encourage customers to exchange instead of return. This works well when customers are unhappy with one item in a BOGO deal.
Partial Refunds: If only one item is returned, calculate the prorated value and refund accordingly. Be transparent about this in your policy. Typically, only one coupon can be used per sale, so ensure your refund process accounts for this when coupons were applied.
By providing flexible but fair options, you preserve customer satisfaction without giving away free products unfairly.
Make sure your customer support team understands:
How your BOGO return policy works
How to explain it clearly to frustrated or confused customers
How to process exceptions or edge cases (e.g., gifts, damaged items)
When to escalate abuse or repeat offenders
Arm them with scripts, policy examples, and access to automation tools so they can enforce policies consistently and confidently.
Assuming your store has a clear and enforceable BOGO policy, here are the best practices every business should follow:
Define clear BOGO return rules in your policy and stick to them.
Use automated return tools like WeSupply to enforce logic and eliminate guesswork.
Train your staff so they’re aligned and consistent.
Communicate proactively with customers throughout the buying and returning journey.
Offer flexible refund methods like store credit and exchanges.
Monitor for abuse and build safeguards into your system.
Handling Buy One, Get One (BOGO) returns can be a challenge especially when customers want to keep the free item after returning the paid one. Without the right technology, this can lead to lost revenue, confusion, and poor customer experiences. That’s where WeSupply steps in to help you strike the perfect balance between fairness and profitability.
WeSupply empowers eCommerce brands to automate and enforce transparent BOGO return policies while ensuring customer satisfaction and protecting your margins.
Carry over promotional discounts such as the 100% discount on a free BOGO item so that customers are never mistakenly charged for free items during returns or exchanges.
Calculate adjusted refunds or credits based on promotion compliance, avoiding over-refunds or missed charges.
Communicate return conditions clearly in the checkout flow, return portal, confirmation emails, and FAQs.
Offer flexible options like store credit or exchanges without manual intervention.
Monitor, flag, and prevent return abuse by tracking suspicious patterns and enforcing promo eligibility at the SKU and order level.
Whether you’re running BOGO promos to increase conversions, move seasonal stock, or build brand loyalty, WeSupply makes it easy to manage post-purchase complexity without charging customers for items they rightfully received for free.
Say goodbye to confusing BOGO returns. With WeSupply, you can uphold a customer-friendly experience and protect your revenue automatically. Book a demo today!
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Book a quick call with our experts to see how WeSupply can help you make returns easy for your customers with a beautiful, self-service solution that makes their experience easier while also providing new ways to lower costs and earn back revenue.
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BOGO deals are a proven way to increase sales and customer satisfaction, but they also introduce complex return scenarios that can erode margins if not handled properly. The key to managing these challenges lies in having a clear, enforceable return policy supported by smart automation and transparent communication.
WeSupply simplifies this by automatically applying promotional logic, carrying over 100% discounts for free items during returns or exchanges, and preventing customers from being charged for items they rightfully received as part of a BOGO deal. With WeSupply, you can enforce conditional return rules, monitor for abuse, calculate accurate refunds, and guide customers through a seamless return experience all while protecting your bottom line.
It empowers your team with the tools and logic they need to confidently support BOGO policies without friction. With the right strategy and the right platform, you no longer have to choose between customer loyalty and revenue protection you can have both.
1. Can a customer keep the free item in a BOGO deal after returning the paid one?
Usually no. Most return policies require both BOGO items to be returned. If only the paid item is returned, the refund may be reduced to account for the free item.
2. What should a BOGO return policy include?
A clear BOGO return policy should outline conditions for full and partial returns, refund adjustments, exchange rules, and what happens if only one item is returned.
3. How do stores handle inventory during BOGO returns?
Stores use inventory systems to track original prices, discounts, and returned items. Most require both BOGO items back for a full refund to prevent loss and abuse.
4. How does WeSupply prevent customers from abusing BOGO returns?
WeSupply enforces promo logic, flags suspicious patterns, and ensures both BOGO items must be returned before refunds protecting merchants from return fraud.
5. Can WeSupply automate refunds for BOGO returns?
Yes. WeSupply automatically applies promotional logic, prorates refunds, and ensures customers aren’t over-refunded or charged for free items during BOGO returns.
6. Does WeSupply communicate BOGO return rules to customers?
Absolutely. WeSupply displays BOGO return terms in the return portal, checkout, confirmation emails, and FAQs to reduce confusion and improve transparency.
7. Does WeSupply have an Official Shopify App?
Yes. WeSupply has an Official Shopify App. You can download it and start integrating with your Shopify Store.
8. Does WeSupply have an official Magento extension?
Yes, WeSupply has an official extension for Magento. The WeSupply x Magento integration allows for automating order tracking experiences, reducing customer inquiries, automating shipping email and SMS notifications, and providing a fully branded order tracking experience.
9. Does WeSupply have an official BigCommerce App?
Yes, WeSupply has an official BigCommerce App. You can integrate WeSupply with your BigCommerce store to improve your post-purchase customer experience.
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