Pricing
Resources/Blog

Transparency Matters: How Loop Adapts to Shopify's New Checkout Requirements

Author avatar

Hannah Bravo

·

December 12, 2024

Shopify recently announced that starting on Feb 18, all Shopify apps must clearly display costs and obtain explicit buyer consent before adding any optional, paid items to their order. This impacts all shipping insurance and consumer-paid returns offerings, including Offset by Loop which charges consumers a small fee at checkout for a free return later. Want to learn more about how Loop can help you reduce return costs? Get a demo.

Shopify recently announced that starting on Feb 18, all Shopify apps must clearly display costs and obtain explicit buyer consent before adding any optional, paid items to their order. See here for Shopify’s updated requirements for Checkout UI extension app requirements and prohibited app types. This impacts all shipping insurance and consumer-paid returns offerings, including Offset by Loop which charges consumers a small fee at checkout for a free return later.

Shopify is making this change in an effort to increase shoppers' confidence and trust in the Shopify checkout experience. Loop’s strong relationship with Shopify allowed us to plan in advance for how we’d support merchants through the change, and we fully support Shopify’s aim to bring increased transparency to shoppers. But it’s not just Shopify: our merchants have been asking for the same, and the work to shift Offset to an opt-in experience is already well underway.

You may be wondering what this means for Loop’s Offset offering:

  • Loop will continue to offer market-leading returns software, including our consumer-paid returns model, Offset.
  • Driving consumer trust through transparency is foundational to Loop’s ethos. We are ensuring full compliance of Offset with Shopify’s updated requirements.
  • We expect the impact to existing Offset merchants to be minimal and will provide ample advance notice to any changes in their experience leading up to Feb 18.

On a more personal level, the update from Shopify prompted me to reflect deeply on the change and what it means for our 4,000+ merchants.

In reflecting on this news, I grounded myself in our core values. The two that guided our response are “Clear Is Kind” and “Make Merchants Successful”. Depending on your point of view on the Shopify policy change, you could argue that it aligns with the first (Clear Is Kind), but not the other (Make Merchants Successful). For me, the truth is hiding in plain sight.

We’re all consumers. Consumers deserve the freedom of choice, and the freedom of choice is only possible with awareness and transparency. When consumers are offered and choose a transparent and valuable experience with a brand, they’ll continue to shop there.

At Loop, we’re building for merchants, but the same principles apply. We know how hard it is for merchants right now, and this update only further fuels our mission and desire to be an adaptable partner who can change with the market. We believe in providing our merchants with choice and transparency. Consumer-paid returns may not be a good fit for all merchants, but they are for some, even with this change.

Loop’s long-standing premium returns offering is largely unaffected by this change and gives us the confidence and stability to continue providing a consumer-paid returns option. We just acquired Wonderment, Shopify’s #1 proactive customer experience and order tracking platform, and continue to evolve our offerings to deliver new revenue drivers for merchants. Loop is here for the long haul, and here to help our merchants achieve the same.

Ready to learn how Offset by Loop can help you recover return costs? Get 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.