Increase Profitability with your Return Policy

OVERVIEW

Learn how you can set up return policies that 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 return processing and keep both systems up-to-date. 

4. Workflows

Build highly customized returns experience that reduce operational costs and policy abuse. 

Check out how other Loop brands are doing it!


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).
  • Set up Shop Now to start generating upsell revenue by letting your customers exchange for any product in your catalog right inside the Loop portal.
  • Offer a Store Credit Bonus to incentivize customers to select gift card over refund
31% retained revenue for merchants leveraging Shop Now.

For bonus credits (Shop Now and Store Credit), offer at least 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

You lose thousands of revenue due to out-of-stock exchanges.

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 for policy abusers and decrease your return rate by analyzing your return data

1. Keep Item

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

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 support@loopreturns.com. 

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