Yes, returned products can be restocked automatically.
NOIR & BLANCO COMMUNITY
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Yes. Shopify POS can manage returns to inventory.
When processing a return in Shopify POS, merchants can choose whether the returned item should be restocked. If the item is returned in sellable condition and the restock option is selected, Shopify increases the inventory quantity at the appropriate location.
This helps keep inventory accurate by:
Returning sellable items to stock
Preventing damaged or unsellable items from being restocked
Updating inventory counts automatically
Synchronizing inventory across Shopify POS and online sales channels
Merchants can decide on a case-by-case basis whether a returned product should be added back into inventory.