How it works
As tariffs and other pressures mount, brands are looking for new ways to protect their margins—including shifting return costs to consumers. In a consumer-paid model, shoppers choose to pay a small upfront fee to unlock free returns later.
This model can do wonders for profitability, but it’s essential that every brand understands the economics behind consumer-paid models, especially the hidden costs.
+47%
increase in Loop brands that charge return fees, since 2020
What's your annual order volume?
What's your annual return volume?
What's your annual return software cost?
Other solutions
Software cost
$0
Return shipping cost
$0
Hidden costs
$109,000
Extra annual revenue
$0
With Offset by Loop
Software cost
$0
Return shipping cost
$0
Visible costs
$59,200
$49,800
on overall return rates
on overall repeat purchase rates
on net average order values
At Loop, our motivation is always to help brands succeed - not the other way around. Discover how you can reap the benefits of a consumer paid model and retain your return profit with Loop.
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How Brandon Blackwood upleveled their return operations with Loop
Updated on Jan 10
Return fees vs free returns: pros, cons, and key differences
Updated on Nov 25
Customers reacting positively to new return fee structures
Updated on Dec 3