Create a modern (2025) return policy for your online store
Corinne D'Andria
·March 26, 2025
Launching a new store, or expanding your brick-and-mortar shop into ecommerce?
Sure, it’s important to make sure your product photography is pixel-perfect, your brand voice is on point, and your check out process is seamless—but don’t sleep on your returns policy.
Of course, you’ve got incredible products. But even if your shoppers love your brand in a general sense, it still doesn’t mean every product will be exactly the right fit for every shopper.
Sometimes an item looks different in the harsh light of day than it did online, or the cut of a pair of jeans isn’t as flattering as it looked on the model. Or maybe the shopper is simply “wardrobing”—purchasing multiple items to identify which one they want to keep. Whatever the case may be, ecommerce returns are simply par for the course. In some categories, you may see up to 30% of purchases ending up in returns.
By building a best-in-class returns policy, however, you can make sure that your returns process is a value-add for your business that keeps shoppers coming back. Here’s how.
Building a great returns policy
When deciding on a purchase, shoppers are looking at brands’ returns policies from the get-go: In fact, 82% of shoppers say that a store’s returns policy influences their buying decision.
What’s the gold standard?
- Generous: At least 30 days is now standard for a returns window, but offering even more time to make a decision can build customers’ trust. Zappos, for instance, offers shoppers a full year to make a return or exchange.
- Transparent: Your returns policy shouldn’t be buried in layers of legalese and fine print. Allbirds, for instance, explains its returns policy in a clear and simple paragraph, directly below the returns portal.
- Convenient: These days, some shoppers still like to repack and mail in their own returns—but they’re in the minority. Eighty-four percent of shoppers say that they prefer a hassle-free returns experience that lets them bring their unboxed product to a drop-off point for return shipping.
- Instant refunds: Shoppers don’t want to wait for their money back. Ninety percent of shoppers say they’d favor brands that provide instant refunds when their return requests are initiated, rather than waiting for payment.
Free v. paid returns
Of course, customers also prefer access to free returns, with 72% of shoppers saying they’d remain loyal to brands that offer no-fee returns.
That said, in an era of ever-increasing shipping and operational costs, such retailers are few and far between: Two-thirds of retailers now charge for return shipping on at least some forms of returns.
To balance between controlling your costs and delivering a great customer experience, consider a hybrid approach: Charge return fees for items that are sent back, while offering free returns on items that are delivered to a drop-off center or returned in-store.
At Loop, our Offset tool also provides an opportunity to deliver a premium returns experience at a low price point. When checking out, shoppers can select the option to “Offset” their return fees by paying a small fee up front (generally $2 to $3), and get access to a streamlined free return later. This solution empowers brands to build a cash buffer to cover the costs of reverse logistics, given that only a small portion of customers will request a return.
Optimizing for exchanges
Looking for other strategies to retain revenue from your returns?
Then give shoppers the chance to explore their options. By setting up a streamlined returns portal that optimizes for exchanges and provides opportunities for store credit, you’ll be able to encourage more shoppers to choose an alternate product, rather than default to a refund.
Loop’s returns portal makes it easy for shoppers to self-service their return requests, with the option for an Instant Exchange, which they can use to apply their refund credit towards any product in your store. You can provide curated recommendations for item swaps, based on items that shoppers with similar buyer profiles have rated highly. Even if the new item is a different price, the credit or debit will be instantly applied to their account, with no need for a new transaction.
You can even opt to sweeten the deal by offering your shoppers Bonus Credit to apply towards a new item if they’ve initially opted for a refund. Providing Bonus Credit can help sway them towards an exchange, and even encourage them to spend in excess of the Bonus Credit amount, providing your brand with upsell revenue—while preserving a valuable customer relationship that you otherwise may have lost.
By using the right technology to streamline your returns process, you’ll be able to deliver a post-purchase experience that your customers will love, while ensuring that your brand keeps operational expenses in check. With Loop’s best-in-class features, you’ll be able to build a sustainable path to growth by transforming your returns process into a key business advantage.
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With Loop, your brand can offer everything from refunds to direct exchanges to shopper incentives and more. Even better? These exchanges build your business.