Loop + Stripe
What is Stripe?
Stripe powers Loop’s Shop Now: In App + On-Store experiences. This allows Loop to preserve a request for an exchange without creating the order in Shopify until the return is approved.
- Shopify does not collect an additional fee when exchanging for up-sell in Shop Now
- Stripe will collect 2.9% plus $.30 for each up-sell order captured
- The 2.9% only collects from the up-sell amount
- If a $50 item is returned for a $75 item, only the $25 is collected on
- Additionally: if a Shop Now order has no up-sell, no Stripe cost is incurred
Why Doesn't Loop Use Shopify Checkout?
- Going through Shopify Checkout would require an exchange to be seen as an immediate purchase
- Going through Stripe allows us to preserve the “Exchange Request” by capturing payment through Stripe + Loop, and holding the new exchange order until you’ve approved the return
Shop Now ROI Details (Why this is worth it)
- We see an average reduction of 20% away from refunds toward Shop Now / Exchanges or Store Credit when activating a Shop Now Bonus and a Handling Fee
- Shop Now with a Bonus generally accounts for 5-10% of that reduced refund rate
- Shop Now with a Bonus generally accounts for $1.95 of new revenue on average, per return