Offset Rising Return Costs with Loop’s Exciting New Product
Samir Kamnani
·October 15, 2024
Rising costs are a major concern for everyone, from consumers to brands. Ecommerce brands face the challenging task of reducing costs while driving conversions, especially focusing on repeat purchases.
This pressure is evident in the market where free returns are no longer the norm, or even the expectation. Return fees have become normalized and are rising. Today, 62% of Loop merchants are charging return fees, a +47% increase from the start of 2020.
The impact from the customer point of view, is that customers now expect an excellent returns experience. While they are willing to pay for it, they expect value in return. In fact 70% of shoppers are willing to pay for a more convenient, premium return experience — and 50% already have. An automated returns experience that matches or exceeds an in store experience is becoming the norm.
For brands, return costs go beyond labels, and include return management solutions, refurbishment, 3PL, and exchange labels. Brands must balance these costs with maintaining profit margins and ensuring positive cash flow, all essential for business health.
So how has the increased pressure to free up cash flow and reduce costs, in combination with the return fees trend, manifested in the market? The market has responded with the emergence of consumer-paid returns, enabling brands to cover the cost of return labels and software while offering consumers the option to return for a significantly lower fee.
Enter Offset by Loop. Offset is a pre-purchase experience where buyers will have the option to pay a small fee during checkout in order to receive free returns later. If buyers don’t opt-in, they will be charged a label or handling fee later on to help cover the cost of the return.
As retail operating costs increase and shoppers grow more accustomed to return fees, this new feature helps merchants, well, offset return costs.
Loop’s industry-leading product innovation has allowed us to build Offset in a way that optimizes for customer experience and increases CLTV, while allowing merchants to protect their profit margins. Offset remains consistent with your brand – not Loop’s or anyone else’s – and allows you to take ownership of your returns program to enable your ideal post-purchase experiences.
Brands can use Offset with other premium Loop features to cultivate a high-quality post-purchase engine that maximizes profitability – all the features that have made Loop the leading marketing solution for returns and post-purchase, are now available for free with Offset.
- Shop Now
- Bonus Credit
- Instant Exchange
- Return Bar dropoffs
- Advanced Workflows
- Keep Item
- Fraud Detection
- And much more
With proven leadership and expert strategic guidance, Loop’s full suite of features allows you to hit all your goals at no cost thanks to Offset:
- Deliver an exceptional returns experience – customers rejoice
- Increase cash flow and profit margins – CFOs rejoice
Offset is the solution that will keep all your stakeholders happy. Free returns software, free labels, and the best returns experience for your buyers and teams.
See how much Loop can save you on your returns program. Book a demo.
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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.