Return policy settings


Most settings can be managed under Settings > Return Policy. This guide will give you an understanding of what each setting does and how to properly configure each field. 

In this article

Return address

This will be the address associated with your primary fulfillment center. This is the address that will be printed on return shipping labels. 

  1. Navigate to Settings > Return policy > “Return address” to provide the return address where your customers will send return packages back to.
  2. Fill out the appropriate fields.
  3. Save changes. 

Note: If you need returns routed to multiple fulfillment centers, please contact Loop Support.

Email settings

  1. Navigate to Settings > Return Policy > Email settings and edit the appropriate fields:
    1. Email sender name: This will be the visible name customers see when Loop sends notification emails (i.e. when their store credit is available, a return confirmation, etc...)
    2. Reply-to email: This email will be used when a customer replies to a return email 
  2. Save changes.

Return labels

Loop partners with EasyPost to generate labels for your customers. EasyPost labels are automatically set to “off” in Loop admin. Navigate to Settings > Return policy > Return labels to enable automatic return shipping labels for your customers:

  1. Click the sliding grey button to the right of EasyPost Labels to generate shipping labels in Loop. Toggling this on will display EasyPost labels settings and processing events settings. 
  2. Follow the setup instructions detailed in the EasyPost Integration guide.
  3. Copy your EasyPost API key into the appropriate field.
  4. To ensure costs for your shipping labels are accurate, it is important to accurately configure your product weight and box weight defaults:
    1. “Product Weight Default” - The Product Weight Default is used to inform the cost of your return shipping label when a product weight is not listed in Shopify. 
    2. “Box Weight Default”  - The Box Weight is always combined with the weight of products included in a return request to inform the cost of your return shipping label. 
  5. Save changes.

Note: To generate a return shipping label, Loop sends the weight of each item included in a return request, combined with the Box Weight. When there is no weight listed for certain products, Loop applies the Product Weight Default.

Processing events

If using automatic return labels via EasyPost, please review automatic processing events to determine at what point in the returns process an exchange order, refund or Shopify gift card will be issued to the customer. 

Any of the following events can trigger automatic processing:
  • Manual: automatic processing is disabled.
  • 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.
To update this setting:
  1. Select the appropriate processing event for Exchange, Refund and Store credit in Settings > Return Policy > "Processing events." 
  2. Save changes. 

Pro-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:

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

Return window

To set your return window, navigate to Settings > Return Policy in Loop admin.

  1. Enter the appropriate values in the “Return window” field. These values can be set at the Exchange, Refund and Store Credit (gift card) level. 
  2. Save changes. 

Pro-tip: We recommend making the window for refunds the shortest, this will help promote customer retention through incentivizing exchanges and gift cards. 

“Expiring soon” notification 

IMPORTANT NOTE: After a customer has initiated a return request, they will have 28 days from that date to ship the item before the shipping label is deactivated. 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.” 

Ineligible returns

A return will be marked “ ineligible” and the shipping label will be deactivated if a customer misses the designated return window. 

Note: Many merchants pad out the allotted time slightly from their visible return window to reduce calls from customers requesting late returns. The date associated with this return window will only be visible to the customer while in the Loop Portal.  

Using Shopify product tags

The Final Sale and Exchange Only tags let you control which items are eligible to be returned in the Loop app. 

To associate Shopify Product Tags with specific limitations in Loop:
  1. Navigate to Settings > Return Policy > Product Tags
  2. Enter the appropriate tags in the following fields:
    1. Exchange Only - products with this tag will only be available for a new variant of the same product, for example: color and size. It does not allow an exchange for other product IDs.
    2. Final Sale - when the "Final Sale" tag is applied to an item, it cannot be sent back using the portal for any reason. It will be marked Ineligible.
  3. Save changes. 

To hide a variant from exchange flow
  1. To hide a variant from appearing for an inline exchange, copy the variant SKU in Shopify then tag the parent product with that SKU
    1. In this example, tagging the product with the variant SKU 78ST-White would hide the XS White pair of leggings from appearing in the exchange flow. If no action is taken otherwise, the product would still appear in the exchange experience:

Shop now bonus

This feature is only available to those on Loop Pro and Plus plans. By providing a bonus credit, you can incentivize customers to purchase another item while making a return. Navigate to Settings > Return policy > Shop Now Bonus:

  1. Enter the bonus credit value you’d like to offer customers. 
    1. This credit exists as a flat-rate fee, and is added to the value of the return to increase the customer’s buying power. 
    2. If you do not want to use Bonus credit, set the value to zero.
  2. Save changes. 


In the Exchanges section of Settings > Return Policy in Loop admin, you can set or deactivate the New Order Prefix and allow for Exchanges of Exchanges.

New order prefix

When exchange orders are sent to Shopify by Loop would you like a different order prefix? 

  1. Enter in the order prefix you would like to use
    1. New order prefix” is pre-set to On with “L-”
    2. Pro-tip: Many merchants change the Order Prefix to “EXC-” or “X-” to clarify that these are Exchange orders
  2. Save changes.

Note: Deactivating the “New order prefix option” will set Exchange orders to use completely unique order numbers. It is not recommended to deactivate this setting.

Exchanges of exchanges

Would you like to allow these customers to exchange items multiple times?

  1. Toggle “Exchanges of exchanges” setting ON. 
  2. Save changes. 

Note: Turning the “Exchanges of exchanges” setting off will limit customers to one exchange. Future return requests will be refund or store credit only. 

Different Priced Exchanges 

Would you like to allow exchanges, but prevent customers from exchanging for a variant or product that is a different price? See more information on how Loop handles different-priced exchanges in the exchanges guide. 

This setting is automatically disabled, which limits customers to one exchange, and future return requests will be refund or store credit only. Reach out to Loop Support if you would like different priced exchanges enabled. 


Navigate to Settings > Return Policy > "Inventory" to set a minimum inventory threshold in Loop to prevent an item from going out of stock after a customer has submitted a return request. 

These settings have special functions that can be modified based on how you manage inventory:

  1. Set your minimum inventory threshold by entering a value in the minimum inventory field.
    1. If this number is set to a higher value, more products will appear out of stock during the Exchange process, increasing the likelihood of a refund request.
    2. The lower you set your minimum inventory, the more Out of Stock email notifications will be sent out when Loop attempts to process an exchange request, requiring Merchant intervention
    3. Therefore, we recommend evaluating the velocity at which products sell on average in order to calculate the most appropriate number for your store
  2. If you’d like to have the option within Loop to restock return inventory in Shopify when a return processes, toggle the “Restock inventory” setting on.
  3. If you’d like to restock returned inventory based on processing events, toggle the “Auto-restock” setting on. 
    1. Note: if you use another application or service for inventory management, please notify your onboarding manager so we can make an appropriate recommendation based on your system. 
  4. Save changes.

Handling fee

You can assess a Handling Fee to refund requests to help recover the cost of shipping:

  1. Set the value you wish to apply as a fee when a customer takes a refund to their original payment method.
  2. Enter description customers see when the Handling Fee is subtracted from their Refund request in the handling fee text field. (i.e. “Shipping” or “Restocking fee”).
  3. Click save.

Gift returns

Allow customers to return a gift for exchange or store credit, navigate to Settings > Return Policy > “Gift returns,” and toggle this setting ON:

  1. Set a reply email address for gift return inquiries.
  2. Save settings. 

Learn more about gift returns here

Keep item

 Allow customers to keep an item under a certain value threshold, enable “Keep item” in Settings > Return Policy:

  1. Let Loop Support know if you would like this feature to be enabled.
  2. After this feature has been activated for your account, toggle “Keep item” ON.
  3. Select manual or automatic review to determine when a refund will be issued.
    1. To learn more about this setting, visit the Return Policy Enforcer article

Does this apply to refunds and exchanges? 



What happens when a customer tries to make a return or exchange outside of the return window?

After a customer has initiated a return request, they will have 28 days from that date to submit the item before the return is marked " ineligible” and the shipping label is deactivated. 

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.  See more about Policy Rules here.

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. Read more here.

 How can I test inventory restock?

If you have turned on restocking inventory: process an order with restocking toggle on for some items and off for others:

Verify correct product inventory amounts in Shopify have been added back in by taking the quantity number before and after processing.

If you have any other questions or would like more information please reach out to us at