Return Policy Settings

OVERVIEW

This guide explains Loop's return policy settings, which can be found under 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:


Setup walkthrough

Create or edit return policies

  1. Navigate to Settings > Return policies in the Loop admin to view location-based return policies.
  2. Click Show details to view the current policy settings.
  3. Click Create return policy to create a new return policy, or click Edit to adjust an existing policy. Only 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 support@loopreturns.com

The Return policies setting screen.

Policy zone

When creating or editing a return policy, the Policy zone settings determine which customers this return policy applies to.

The following settings can be configured under Policy zone:

  • 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 automatically generate shipping labels for customers. By default, this setting is disabled.

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: 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: 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. 

The Policy zone settings section.

Return outcomes

Customize policy settings for processing events, return windows, shipping fees, and bonus credits in the Return outcomes section.

There are four return outcomes to choose from. Toggle each outcome to make it available to customers using this return policy.

  • Refund: Allow customers to receive a refund on 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 on gift cards, see Store Credit Automation for details on gift cards.
  • Shop Now: Allow customers to shop immediately with their return credit. For details, see Shop Now: In App versus On-Store.

Return outcome settings will need to be configured individually for each enabled return outcome.

Processing events

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

  • Manual: disables automatic processing. NOTE: this processing event will not put returns in needs review. If you want your returns to go into needs review, then please see the Workflows article to leverage 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

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 by selecting 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, Ship by Loop US Domestic, or Ship by Loop Worldwide. Services such as SEKO and Cycleon are not currently supported for this fee type.

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

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

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 support@loopreturns.com. 

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 



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


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 support@loopreturns.com.

FAQ

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 support@loopreturns.com with any additional questions.

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