No. When you refund a transferred Etsy order in Shopify, Shuttle does not send that refund to Etsy. Your customer only gets their money back when you refund the order on Etsy.
Why a Shopify refund does not pay your customer back
A Shopify refund on a transferred Etsy order returns no money, because your customer paid on Etsy, not through Shopify. The payment you see on the order in Shopify is a record that Shuttle adds so the order totals match.
No money came in through Shopify for a transferred order. So refunding it in Shopify only marks it as refunded, and nothing goes back to your customer.
How to refund an Etsy order
Every refund for an Etsy order has to start on Etsy, because Etsy does not let outside apps such as Shuttle issue refunds.
In Etsy, open the order and issue the refund there.
Leave the Shopify order as it is. When automatic order transfers are on, Shuttle records the refund on it for you. When they are off, update the order from the Orders page in Shuttle.
How Etsy refunds show up in Shopify
When automatic order transfers are on, Shuttle copies Etsy refunds to the Shopify order for you, whether or not you cancelled the Etsy order. When automatic order transfers are off, you update the order from Shuttle yourself.
When you cancel an Etsy order
When automatic order transfers are on and you cancel an Etsy order, Shuttle marks the matching Shopify order as refunded. Where Shopify allows it, Shuttle also cancels the Shopify order.
Shopify does not cancel an order that has shipped, so for a shipped order Shuttle only marks it as refunded in Shopify and leaves it open. No money moves, because your customer was already refunded on Etsy, and nothing is restocked.
Shuttle also emails you about a shipped order it could not cancel. If part of the order has not shipped yet, do not send the rest to your customer. If your order settings reduce Shopify stock when an order is transferred, add those unshipped items back to your stock.
To transfer orders automatically, you need the Growth plan or higher.
When you refund an Etsy order without cancelling it
When automatic order transfers are on, Shuttle copies an Etsy refund to the matching Shopify order by itself, even when the Etsy order is not cancelled. The refund in Shopify is only a record. No money moves, because your customer was already refunded on Etsy.
How much Shuttle records in Shopify depends on how much you refunded on Etsy:
If your Etsy refunds come within about 5% of the order total, Shuttle refunds everything left on the Shopify order.
Otherwise, Shuttle refunds the total you refunded on Etsy, and the Shopify order shows as partially refunded.
Shuttle also picks up a later partial refund on Etsy. It counts the refunds already on the Shopify order, including any you made there by hand, and adds only the extra amount, so nothing is refunded twice.
If Shopify does not accept the refund, or Shuttle has no exchange rate to convert it into the order's currency, Shuttle tries again the next time it reads the order from Etsy.
When automatic order transfers are off, record the refund by updating the order from Shuttle:
In Shuttle, open the Orders page and click Transfer orders.
Choose Transfer or update orders.
Choose Only update existing, pick the orders to process, and start the run.
Shuttle then marks the matching Shopify order as refunded, for the full amount or for the part you refunded.
To transfer orders automatically, you need the Growth plan or higher.