Why Shopify doesn't do it on its own
Most returns are fine to sell again, so Shopify restocks by default. The Restock items box shows on refunds when you track inventory for the items, and it's ticked every time. Shopify's help shows no setting to untick it by default, and apps can't change the refund screen. So damaged or used returns end up as stock you don't really have.
The free way
- Open the order and click Refund.
- Before you confirm, untick Restock items if the item is broken or can't be sold again.
- Finish the refund as usual.
- If an item went back in stock by mistake, open the product and adjust its inventory down. Pick the reason Damaged so the change is labelled.
- To check what happened, open the product's adjustment history. Shopify keeps the last 180 days there, with one of 7 fixed reasons on each change: Correction, Count, Received, Return restock, Damaged, Theft or loss, Promotion or donation.
Where the free way falls short
- The box is ticked on every refund. One busy day and a broken item is back on sale.
- You often find out only when a customer buys stock you don't have.
- Shopify's reasons are fixed. You can't add your own, like "Damaged return", or a note saying which order it came from.
- It all depends on every staff member remembering, every time.
The easier way: RNS Inventory Notes
- Turn on the refund restock guard in Settings (Pro). Choose all products, or only products with the tags you list.
- Refund as normal. When Shopify puts a returned item back in stock, on a refund with Restock ticked or on a return, the app takes it back out straight after.
- Check History. Each one is a row with the reason "Refund: not restocked", a note like "Refund on order #1234", and "Refund guard" as the staff name. If the item was fine to sell, click Undo.
The app also lets staff change stock with your own reasons, a note and their name, and shows the cost of damaged and lost stock.
The Free plan covers 30 stock changes a month at your main location. Pro is $15 a month with a 14-day free trial: unlimited changes at every location, full history with CSV, and the refund restock guard.
What it can't do: it can't untick Shopify's box. The item is back on sale for about a minute before the app takes it out. It acts only on refunds of shipped items, not cancellations, and point of sale refunds only if you tick them.
Questions
Can I make "Restock items" unticked by default?
Not in Shopify, and apps can't change the refund screen. Staff untick it each time, or the app's guard takes the stock back out right after.
Does Shopify track why stock changed?
Yes. It has 7 fixed reasons and keeps 180 days of history per product. The app adds your own reasons, a note, who did it and the cost, linked to Shopify's history by a reference like A-1042.
What if I cancel an order instead of refunding it?
The guard doesn't cover cancellations. Check the restock choice yourself when you cancel.
Sources
- Refunding orders (checked 6 Oct 2026)
- Viewing inventory adjustment history (checked 6 Oct 2026)