Return Policy Settings


This guide explains Loop's return policy settings, which can be found under Policy settings > Return policies in the Loop admin. Loop's location-based return policies enable merchants to define a location and then customize policy settings to that location. 

In this article:

Create or edit return policies

The video below walks through the return policy setup process. Beneath the video are written step-by-step instructions merchants can follow.

To set up or edit a return policy:

  1. Log in to the Loop admin and go to Policy settings > Return policies to view location-based return policies.
  2. If needing to review currently policy settings first, click Show details.

    This image shows the Return policies landing page in the Loop admin. It shows a return policy with a toggle button titled Show Details that merchants can click on.

  3. Click Create return policy to create a new return policy, or click Edit to adjust an existing policy.

    The Return Policies page. At the top right is a Create Return Policy button. Below, existing return policies are shown, each with an Edit button on the right side of their tiles.


  • These settings are customizable based on the merchant's Destinations setups.
  • If the merchant needs returns routed to multiple Destinations, please reach out to

Policy zone

When creating or editing a return policy, the Policy zone settings determine which customers are affected by the return policy.

The Policy zone settings section.
Loop admin > Settings > Return policies > "Policy zone".

Merchants can configure the following policy zone settings:

  • Name: The name of the policy (for example, "Domestic" for domestic shipping or "Canada" for Canadian shipping).
  • Returning from: Select one or more countries or regions. The return policy will apply to all customers in the selected countries or regions.
  • Returning to: The destination to which returns will be sent.
  • Generate labels: Enable this setting to generate shipping labels for customers automatically. By default, this setting is disabled.

    Note: If the merchant uses EasyPost for label generation and wants to enable specific carrier accounts for a policy, follow the setup steps on Enable Carrier Accounts by Return Policy.

  • Bypass Review: By default, returns associated with international return policies are flagged as Needs Review. If Bypass Review is enabled, the returns will not be flagged. All rules that flag returns for review will still apply (for example: keep item, out-of-stock, etc.)
  • Generate Packing Slips: Enable this setting to automatically generate return packing slips, making it easy for warehouse team members to access RMA numbers, SKUs, and return reasons. 

Note: Loop supports cross-border shipping in select countries. Adding multiple countries to the same return policy will apply the policy settings but will not connect cross-border shipping labels. Take a look at setting up International Lite for cross-border support.

Return outcomes

This section of a return policy page allows merchants to customize settings for processing events, return windows, shipping fees, and bonus credits.

There are five return outcomes to choose from:

  • Refund: Allow customers to receive a refund for the original order on their original payment method.
  • Exchange: Allow customers to exchange an item for a new variant.
  • Store credit: Allow customers to receive a gift card. For more details about gift cards, please review Store Credit Automation.
  • Keep item: Allow customers to keep items from returns valued below a specific price. Visit Loop's Keep Item article for more information.
  • Shop Now: Allow customers to shop with their return credit immediately. Visit Shop Now: In App versus On-Store for more information.

Toggle on each desired outcome to make it available to customers using this return policy.

Important: Merchants must configure return outcome settings for each return outcome.

Processing events

If using automatic return labels through EasyPost, merchants can select processing events to determine when the return request (refund, exchange, or store credit) will be issued to the customer:

  • Manual: Disables automatic processing.

    Important: This processing event will not mark returns as Needs Review. If the merchant wants their returns to go into Needs Review, follow the Workflows article to use the manual review action.

  • Immediate: Return requests are processed as soon as they are submitted.
  • Pre-transit: Return requests are processed when the tracking number is created (typically 12-48 hours after being submitted).
  • In transit: Return requests are processed when the package is dropped off by the customer and scanned by the shipping carrier.
  • Out for delivery: Return requests are processed when the package is scanned and placed onto the truck for delivery.
  • Delivered: Return requests are processed when the package arrives at your fulfillment center.

Selecting a processing event.

Tip: To ensure that customers who request an exchange get the product they want quickly and that full refunds are reviewed before getting issued, Loop recommends the following settings:

  • Refund: Manual
  • Exchange: In transit
  • Store Credit: In transit

Outcome restrictions

If using Loop to restock returned products, some of the refund and return settings available will be restricted. Shopify requires Loop to restock returned products at the same time that the refund is processed.

If restocking through Loop is turned off, there are no restrictions on the processing events available.

Begin by checking to see if restocking is turned on in Loop, and whether or not Loop is set to automatically restock products based on processing events.  Restocking details can be found in General Settings.

If manual restocking is turned on like in the image below, the processing event for refunds will need to be set to manual or restocking will need to be turned off entirely.  Processing events for other outcomes can still be set to any processing event.

The inventory settings menu.

If restock settings are set to automatically restock based on processing events, products returned for a refund will be restocked at the same time as the return is processed.  Products returned for any other outcome will continue to be restocked when the packages is marked as Delivered.

Processing delay

To give the warehouse team a few days to QA, process, and repackage returns before processing the return automatically, a processing delay can be added to the return outcome. To do this, select Enable processing delay and enter the number of days to delay processing by. For example, refunds can be set to be processed automatically five days after delivery. This setting can be helpful to leverage during busy seasons like the winter holidays or summer sales, when warehouses can be backed up. 

A zero-day processing delay.

Return window

The return window begins when the original order is marked as fulfilled. Adding a few days of buffer helps account for transit time to the customer.

Tip: Loop recommends making the window for refunds the shortest. This helps promote customer retention by incentivizing exchanges and gift cards.

Note: After a customer has initiated a return request, they will have 28 days from that date to ship the item before the return expires. Loop will send a notification email to the customer after 21 days of inactivity and will add a badge to the return request in Loop that reads “Expiring Soon.” At 28 days, Loop will request a refund from EasyPost for the label.

Exchange shipping method (Exchanges only)

Configure a specific shipping method for exchange orders to be assigned in Shopify by entering the exact name of the Shopify shipping method. These can be configured in each return policy, so the shipping method can be customized by return policy zone.

The Exchange Shipping Method field.

Handling fees

To read more about setting up handling fees in Loop, please review our Handling Fees article.

Return Instructions

  • These steps are included on the final screen of the customer experience
  • This text should be used to guide your customer through the final steps of the return process

Bonus credit

Shop Now bonus 

By providing a bonus credit, you can incentivize customers to purchase another item while making a return. This feature is available to Loop Pro and Loop Plus merchants.

  • Navigate to Policy settings > Return policies > Edit  in the admin to view
  • Enable Shop now
  • Enter the Bonus Credit value you’d like to offer customers
    • This credit can be set as a fixed, flat-rate dollar amount or dynamically calculated by percentage of the return value
    • If the Bonus Credit is not used, it is lost
    • If you do not want to use a Bonus Credit, set the value to zero

Flat rate

Store credit bonus 

By providing a store credit incentive, you can encourage customers to select a gift card instead of a refund. 

  • Navigate to Policy settings > Return policies > Edit to view 
  • Scroll down to Store Credit 
  • Push the Bonus Credit button
  • Configure the desired Bonus Credit amount 
  • Save

Plan information

At this time, Loop Basic and Starter merchants can only have one return policy. If you have any questions, please contact your Account Manager or reach out to


What happens when a customer tries to make a return request outside of the return window? The customer will receive a message that the return window for the item closed on X date, based on your return window settings. From there, they can contact your support team directly for any exceptions.

How can I extend a return window for a specific product? With our Policy Rules feature, you can allow access to return / exchange, or get a gift card based on product ID or days since fulfilled.

How can I make an exception for a customer who’s outside of their return policy? You can add their order to the Allowlist and complete the agreed upon return request and outcome, with our Listings feature.

How can I allow customers to exchange for another style or grouping of a product? With the Advanced Exchanges feature, you can allow certain products to have additional exchange options.

How can I enforce my return policy even if I only accept items that are unworn? You can use the Workflows feature to ask the customer if their item has been worn and reject returns if the customer answers yes.

Should I apply a handling fee on refunds? While fundamentally Loop believes that returns should be free, there is actually a hybrid way of handling returns that we have seen be incredibly effective. Charge return shipping only for refunds to encourage more exchanges and continued customer relationships. Check out our blog post on this topic.

How can I inform my customers about the updates I've made to my location-based return policy settings within Loop? We recommend to keep your site's Return Policy Page up to date. To learn more about how to what customers are most commonly looking for on your Policy Page, check out this Blog Post.  

Does Loop support a Warranty policy? Currently, we do not support an out-of-box warranty policy. However, we can support a workaround using the Workflows feature. Please review the FAQ section of that article for more information. 

Why is Loop still picking up return windows for outcomes that are closed? If the return window is longer in a return outcome that is toggled off, Loop will still display the longer window on the order lookup in the return portal. To fix this, you'll need to enable the return outcome, change window to match the longest return window for the enabled outcome and then disable the outcome again.

What if I need more than one return policy? Currently, multiple return policies are available on Loop's Advanced, Pro, and Plus plans. Please contact your Merchant Success Manager to discuss further.

Please reach out to with any additional questions.

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