Return Policy Settings


This guide will give you an understanding of return policy settings, which can be found under Settings > Return policies in the admin. Loop's location-based return policies enable brands to (1) define a location, and (2) customize policy settings to that location. 

This article will reviewing the following—

Setup Walkthrough

Return Policies Overview

  • Navigate to Settings > Return policies in the admin to view location-based return policies
  • Show details to view the current policy settings
  • Select Edit to make adjustments
  • Create return policy
    • Loop Pro and Loop Plus merchants can add more than one Return Policy
  • These settings are customizable based on the Destinations you have set up

Note: If you need returns routed to multiple Destinations, please reach out to

Policy Zone

  • Navigate to Settings > Return policies > Edit in the admin to view
  • Name the policy (i.e: Domestic or country name)
  • Returning from: the customer’s location
  • Returning to: the Destination location
  • Generate labels: The Generate labels toggle is automatically set as disabled. Enable this if you would like labels to automatically generate for your customers.
    • Note: If you are using EasyPost and would like to enable specific carrier accounts to be used for your Return Policy, please review the Enable Carrier Accounts by Return Policy article for the setup steps.
  • Bypass Review: if you have secondary return policies, all returns that fall under these policies will go under Needs Review. If Bypass Review is enabled on the policy, the returns will not be flagged as Needs Review. All rules that flag returns for review will still apply (for example: keep item, out-of-stock, etc). 
  • Generate Packing Slips: efficient way for your warehouse team to access RMA numbers, SKUs, and return reasons 

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

Return Outcomes

Processing events, return windows, shipping fees, bonus credits are all organized by Return Outcome.

Processing Events

If using automatic return labels via EasyPost, processing events will determine at which point the return request (exchange order, refund or store credit gift card) will be issued to the customer.

  • Navigate to Settings > Return policies > Edit in the admin to view
  • Manual: disables automatic processing
  • 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

Best Practice: 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

NEW: Processing Delays 

If you would like to give your warehouse a few days to QA, process, and repackage returns before processing the return automatically, then you can configure a processing delay. To do this, just enter in the amount of days that you'd like processing to be delayed by. For example, you can have refunds process automatically five days after delivery. This setting could be helpful to leverage during busy times, like winter holidays or summer sales, when your warehouse may be backed up. 

Outcome Restrictions

If you are using Loop to restock returned products to Shopify, you will see some restrictions to what you can do on this page for refund returns.  Shopify requires Loop to restock returned products at the same time that the refund is processed.

If you have restocking through Loop turned off, there are no restrictions on the processing events you can use here.

Begin by checking to see if you have restocking turned on in Loop, and whether or not you have Loop set to automatically restock products based on processing events.  You can find that information in your General Settings.

If you have manual restocking turned on like below, your processing event for refunds will need to be set to manual, or you'll need to turn restocking off entirely.  Processing events for other outcomes can still be set to any processing event.

If your restock settings are set to automatically restock based on processing events, just know that 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.

Return Window

  • Navigate to Settings > Return policies > Edit  in the admin to set up
  • The return window begins when the original order is marked as fulfilled in Shopify
    • It is recommended to add a few days of buffer in the admin for transit time to the customer
  • These values can be set at the Exchange, Refund and Store Credit (gift card) level

Best Practices: We recommend making the window for refunds the shortest, this will help promote customer retention through 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, on your behalf.

Keep Item

Allow customers to keep an item under a certain value threshold, rather than sending it back.

  1. Navigate to Settings > Return policies > Edit  in the admin to enable or disable
  2. Select Manual or Automatic review to determine when a refund, exchange or store credit will be issued
  3. Enter a maximum Value range
  4. Customers will the following message:

Note: when set to manual review, the return request will remain open in the admin until manually processed

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 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 Settings > Return Policies > Edit to view 
  • Scroll down to Store Credit 
  • Push the Bonus Credit button
  • Configure the desired Bonus Credit amount 
  • Save


Recover some or all of the shipping cost on returns by applying a Shipping or Handling Fee. The fee configuration panel is located within each return outcome module inside of a return policy. Fees can be configured for Refunds, Store Credit, and Exchanges and can be turned on or off for each outcome using the "Handling fees" checkbox. 

Fees on each outcome can be configured using one of three fee paradigms: flat rate fee, fee as a percentage of estimated label cost, or fee based on product tags. More detail on these below.

Wondering what Loop recommends here? Check out the Loop Blog for our thoughts on charging for return shipping.

What fee gets applied when a return includes both refunds and exchanges? Loop calculates the value of exchanged product vs. the overall return value. If the value of exchanges exceeds 50% of the total return value, the return is deemed an exchange and any exchange fees will apply. Conversely, if the value of exchanged product is less than 50% of the total return value, the return is deemed a refund and any store credit or refund fees will apply. 

Fees for all Products

Flat rate

Loop will charge one consistent fee as set in dollars on every return that has a fee enabled.

Percentage of estimated label cost

Loop will charge a percentage of the label cost when the rate is initially pulled. 

When a customer is going through the return flow, as soon as they hit the "Continue with Return" button, Loop will estimate the label cost. This will be the amount used to assess the fee. Though the exact amount is unlikely to change before the customer completes their return, it is possible - therefore this is a percentage of estimated label cost.

  • The fee amount can be anywhere between 0-300% of the label cost.
  • You are able to set a maximum fee. If you work with a lot of heavy or bulky items, we recommend adding in a maximum fee to avoid a massive fee due to a one-off estimate.
  • In a case where Loop is unable to estimate the shipping cost, you can put in a flat fee that Loop will fall back on.

Note: Fees by percentage of estimated label cost are currently only available if using EasyPost for label generation. Services like SEKO and Cycleon are not currently supported

Percentage of Return Value

Using this feature, you can choose to assess fees based on the value of items being returned with the ability to set a maximum fee. This way, you can charge a higher handling fee for customers returning more items. 

By Product Tag

This feature allows shipping fees to vary by product type. Loop will assess the fee based on product tag. The fallback fee will still apply if a product does not have a tag.

Here are a few things to keep in mind:

  • Use tagging in Shopify to apply these fees across products
    •  Log into your Shopify store, select product you want to apply the fee tag to
    • In the Tags section of the product page, type in fee tag (refund_fee: xxxx), click green plus sign to complete adding tag
  • If a return has multiple fee tags, Loop will select the highest fee tag and apply it to the return
  • If you would like certain products to be exempt entirely from shipping and handling fees, please use refund_fee: FREE. If an item in a return has the free return tag, the entire return will not be assessed a shipping and handling fee


  • 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

Handling Fees On Exchanges 

In order to collect Handling Fees on exchanges a charge must be assessed, unlike refund and gift cards where the fee is just deducted from the total amount. To begin collecting charges, Stripe must be connected under Integrations. If you do not see the Integrations tile under settings, please reach out to your Account Manager or the Loop Support team at 

Here is some additional information on Stripe:

  • Stripe will collect 2.9% plus $.30 for each fee captured
    • The 2.9% only collects from the fee amount 
    • These fees are assessed and tracked separately within Stripe. Loop does not have this information and the transaction is not recorded in Shopify either. 
  • Cost and payment details are all tracked separately in Stripe. Loop has limited access to this data for security reasons from Stripe.
  • Payouts are issued via Stripe 

Exchange Shipping Method

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. 

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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