Increase Profitability with your Return Policy


Learn how you can leverage Loop features to optimize return costs, retain more revenue, and prevent return losses for your business.

In this article: 

  • Reduce Processing and Logistics Cost
  • Retain more revenue
  • Control and reduce return losses

Reduce Processing and Logistics Cost

Decrease shipping costs with our automated rate shopping and exclusive carrier rates. Save time from your CX team needing to manually touch returns.

1. Happy Returns

Lower your reverse logistics costs through consolidation by leveraging 5,000+ Return Bar locations nationwide.

2. USPS and FedEx Negotiated Rates 

As a Loop customer, take advantage of Loop-specific negotiated rates with USPS and FedEx. 

Here's how you can add these rates to your Loop account.

Save 2-10% on shipping costs with Loop-specific negotiated USPS rates.

3. 3PL and Warehouse Integrations

Decrease your manual labor cost and integrate your 3PL with Loop to automate returns processing.

4. Workflows

Build highly customized returns experience to reduce operational costs. 

  • Customized Handling Fees- Via Workflows, charge handling fees for specific products, orders, and/or customers
33% of Loop brands charge a fee for Refunds.

5. Keep Item

Let customers keep low-value items to save on shipping and warehouse inventory fees. Set your Keep Item rules here.

Retain More Revenue 

1. Increase Revenue Retention

  • Offer exchanges and store credit with minimal handling/shipping/restocking fees
  • Set up Advanced Exchanges for a seamless 1-for-1 exchange of similar products (exchanging to a different color and not just size).
  • Offer a Store Credit Bonus to incentivize customers to select gift card over refund
  • Set up Shop Now with a Bonus Credit to start generating upsell revenue by letting your customers exchange for any product in your catalog right inside the Loop portal.
31% retained revenue for merchants leveraging Shop Now.

For bonus credits (Shop Now and Store Credit), offer 10% of your average order value for best results.

2. Generate Cross-Sell and Upsell Revenue

Connect your tech stack with Loop to reach out to customers with the right message at the right time. 

Use return data to provide personalized experiences to customers via email and SMS.

  • If refund and size issue -> automatically reach out to offer other sizes
  • If refund -> reach out to offer other top-selling products and an incentive
  • If exchange or refund -> reach out to share other frequently bought products

Connect Loop with your tech stack:

3. Decrease out-of-stock scenarios

Out-of-stock exchanges occur when an item is sold out by the time the customer's return is processed. This causes lost revenue and the customer ends up without a product in hand.  

40% of customers are choosing Instant Exchange at checkout when presented the option. 

With Instant Exchange, customers get their new product in hand 4.6 days faster.

Control and Reduce Return Losses

Set different return policies and fees to impede policy abuse and decrease your return rate by analyzing your return data

1. Workflows to Flag High-Risk Returns

Leverage workflows to create customized policies for high-risk scenarios. 

  • High-Value Returns - Flag Returns over a certain $ threshold to be manually reviewed prior to processing
  • High-Risk Customers - Tag High-Risk Customers in Shopify, and use this tag to review or reject returns
  • Damaged Returns - Require Customers to submit a photo for review if they are returning damaged items 

2. Advanced Analytics (Insights)

Reduce your overall return rate by understanding why your customers are returning and what products are returned the most.
  • Product - quickly identify products with high return rate or low exchange rate and corresponding return reasons.
  • Customer - understand the value of customers that return on your business and identify best, costly and risky customer behavior
  • Operations  - visibility into shipping costs, label volume by status, manual returns volume, time to return, time to process and processed return volume by team member

If you have any questions about any of the above, please reach out to 

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