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How returns customization lowers costs and improves efficiency

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Carly Greenberg

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October 25, 2024

Learn how Loop’s Workflows and reverse logistics features can power your brand.

Automating your returns process is an ideal way for your brand to boost your shipping efficiency, resulting in lower operating costs and an improved customer experience in the returns management process.

The savings can be significant: Our recent study found that merchants can save up to $2,500 per 1,000 returns each year when moving from a manual to an automated solution. And for enterprise brands, the savings are even more substantial: They saw an average of $23,700 in cost reductions annually from moving to an automated returns management platform.

By streamlining your customers’ experience with return processing, you’ll also be able to deliver a better experience that makes them more likely to shop with you in the future. Top-performing Loop merchants have seen a 20% increase in first-time customer lifetime value year-over-year.

In this article, we’ll tackle some of the key strategies you can use to get these results through intelligent customization and automated workflows.

Using Workflows for intelligent customization

Loop’s Workflows feature empowers your team to set up drag-and-drop conditional workflows to guide the customer through every return, with different outcomes based on the combination of variables in play.

For instance, you can use Workflows to set up variable outcomes based on item category or tag, customer type (i.e. first-time or VIP customer), and customer inputs regarding the item’s condition and the reason for return. With Workflows, you can:

  • Prevent returns on Final Sale itemsFreeze return options on final sale products by identifying such items in your returns management system. You can sort Final Sale items according to product tag, product ID, product SKU, product type, or vendor.
  • Automatically reject items ineligible for returnsMake sure that customers are following your returns policy by only sending back products that are in return-eligible condition. If you require items to be sent back in new condition with the tags still attached, you can use the “Ask a Question” template in Loop to ask questions about the item condition, and make an instant decision about whether to approve or reject the return request.
  • Provide perks to VIP customersAutomatically identify the customers who’ve enrolled in your VIP or loyalty program with a customer tag, and sweeten the returns experience for them with extra perks. Consider offering them fee-free returns, even if you normally charge for returns, or increased incentives for store credit if they’re interested in exchanging a product.
  • Run expedited quality assurance on damaged productsIf a customer is requesting a return that’s due to product damage or defect, it’s important for you to get evidence of the problem and resolve it as quickly as possible. You can do this by setting up a workflow that asks the shopper to send in photos of the product damage, where they’ll be reviewed manually to determine next steps. This means that the customer’s replacement or refund request can be approved more quickly, and in some cases, you may not even need to request the item back, helping you save money on reverse logistics.
  • Prevent return policy abuse with Return CountMerchants are seeing more customers than ever participate in bracketing, or purchasing multiple items with the intention of sending most of them back. When you identify serial policy abusers, you’ll be able to reduce risk with Return Count—a workflow that sets conditions on high-volume returners, such as implementing additional restocking fees. Protect your profit margins and reduce the incidence of return policy abuse.
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Reducing costs in reverse logistics

You’ll also be able to drive increased efficiency in your reverse logistics process, helping you get items back into inventory faster and save costs on reverse shipping.

You can do this with:

  • Streamlined logistics integrationsLoop data seamlessly integrates with your 3PL partners, automatically syncing your return merchandise authorization (RMA) for real-time visibility in inventory management. That will help you get more detail around return status and condition, so you’ll know when returned products can be resold, and can accurately manage your reordering needs.
  • Shipping carrier partnershipsLoop offers access to discounted rates with a variety of domestic and international shipping carriers, including FedEx, USPS, UPS, Canada Post, and others. We’ll help you save money on return shipping and benefit from our longstanding partnerships.
  • Dynamic routing Our Dynamic Routing feature helps you search through our entire carrier network to find the most cost-efficient reverse logistics path for your returns—or, if you’re more concerned with getting products back into inventory quickly, you can prioritize speed of returns in your search. Set criteria based on item category or tag to determine the right reverse logistics path for each return.

If you’re still using a manual returns solution, making the move to an automated returns management platform like Loop will be transformative for your business. Unlock new efficiencies, delight your customers, and keep your reverse logistics costs in check.

Ready to explore what Loop can do for you? Book a demo today.


Retain more revenue with Loop today

With Loop, your brand can offer everything from refunds to direct exchanges to shopper incentives and more. Even better? These exchanges build your business.