From returns headache to revenue engine: Inside Loop Returns' journey
Kiran Banwait
·September 23, 2025
From Day One, Loop’s vision has always been to transform returns from a challenge into an opportunity. But accomplishing that goal has taken more forms than we ever could have imagined in those early days.
When we started in 2017, we worked closely with ecommerce merchants including Chubbies and Allbirds to understand their pain points – namely, they were spending way too much time and money manually processing returns, which was hindering their business growth.
We soon kicked into gear as a streamlined returns management platform to help Shopify brands automate the returns process – and evolved our product offerings in lockstep with new and growing challenges that brands are facing with the post-purchase experience.
Here’s a look back at some of our key product launches and milestones, and how they serve brands like yours:
The Foundation Years
Returns Automation (2017)
Our automated returns portal is core to Loop Returns' DNA. This streamlined returns management platform seamlessly integrates with Shopify storefronts, where shoppers can initiate returns through self-service, instantly replacing countless hours of manual customer support time. The portal includes automated return authorization, real-time inventory sync for exchanges, and customizable return workflows. Shoppers can select product exchanges directly within the portal, helping merchants retain revenue that would otherwise be lost to refunds. The system processes returns 24/7 without human intervention while providing customers with instant confirmation and tracking updates.
The Customization Era
Workflows (2021)
As our customer base grew, brands needed sophisticated customization in their returns policies beyond one-size-fits-all approaches. Workflows launched as an intuitive rule-based engine that sets up different outcomes for product returns based on multiple criteria such as item category, condition, purchase date, customer tier, or promotional events. Rather than sending special cases to customer service teams, merchants can now automate complex return scenarios with conditional logic, like different policies for luxury items, seasonal restrictions, or warranty-specific handling. This eliminates manual oversight while maintaining sophisticated business rules.
Shop Now & Later (2022)
Revenue retention through exchanges became so popular that we added customization to encourage even more customers to choose exchanges over refunds. Shop Now & Later converts refund amounts into store credit that stays active in the Loop Returns portal, ensuring shoppers can return when ready to make new purchases. Merchants can offer Bonus Credit as additional incentives - typically 10-20% extra credit - to encourage store credit selection over cash refunds. The feature includes flexible expiration management, credit combination options, and branded wallet experiences that keep customers engaged with your brand long-term.
The Omnichannel Expansion
Loop Point of Sale (2023)
Many customers prefer omnichannel experiences, starting purchases online and completing returns in-store, or vice versa. Loop Returns POS app enables cohesive returns experiences regardless of return method. Store associates can easily inspect and process returns using the same sophisticated Workflows as online returns, with real-time inventory synchronization and consistent policy enforcement across all channels. The system includes digital condition assessment tools, instant exchange processing, and integrated reporting that combines in-store and online return data for unified analytics.
International Expansion to UK and Australia (2023)
We moved beyond North America by expanding localized infrastructure with regional carrier partnerships, multi-currency support, and compliance with UK and Australian consumer protection laws. This includes direct integrations with Royal Mail and Australia Post, automated customs documentation for cross-border returns, and localized customer service aligned with regional business hours. Merchants can now offer consistent global returns experiences while Loop handles the complexity of international logistics and regulatory compliance.
Warranties (2023)
Warranty returns require specialized handling different from standard returns - extended timeframes, defect documentation, and manufacturer coordination. We built dedicated Warranty Workflows that integrate seamlessly with our core platform while capturing defect descriptions, routing claims to appropriate vendors, and generating compliance documentation for warranty reimbursement. This gives merchants unified visibility into all return types while ensuring warranty claims receive proper specialized processing and tracking.
The Innovation Acceleration
Ship by Loop (2024)
We simplified merchant experiences by building comprehensive shipping capabilities directly into the Loop Returns platform. Merchants can now rate-shop through our domestic and global carrier network with discounts up to 91% off standard rates, generate QR codes for major carriers, and process international returns with automated customs forms. This eliminates the need to leave Loop Returns for shipping management while providing customers with flexible return methods and real-time tracking integration.
Two Boxes Partnership (2024)
By partnering with returns processing solution Two Boxes, we added enhanced visibility into warehouse and 3PL data across any fulfillment network. The partnership enables merchants to connect Loop Returns accounts to any warehouse without custom integrations, providing detailed item condition assessments, automated disposition routing (resale, refurbishment, disposal), and real-time inventory reconciliation. This improves inventory management accuracy and helps merchants maximize recovery value from returned items.
Fraud Detection (2024)
Returns fraud became a growing threat, so we developed AI-powered fraud detection trained on millions of return transactions. Our Fraud Model identifies high-risk patterns and flags suspicious returns for manual review, achieving 87¢ accuracy per $1 of confirmed fraud. Merchants can customize fraud prevention rules, implement additional verification for risky returns, and access detailed fraud pattern reporting. The system protects margins while maintaining smooth experiences for legitimate customers through automated legitimate return processing.
Branded Order Tracking (2024)
Through acquiring Wonderment, Loop gained real-time branded order tracking capabilities that transform post-purchase touchpoints into revenue opportunities. Merchants can offer branded tracking experiences with proactive shipment notifications, strategic upsell campaigns during the tracking journey, and customizable tracking pages that match brand aesthetics. This typically generates 3-8% additional revenue through targeted post-purchase marketing while improving customer engagement and satisfaction.
Shopify Premier Partner (2025)
Loop achieved recognition as one of only 23 Shopify Premier technology partners globally, validating our deep integration expertise and merchant success record. We've partnered with over 5,000 Shopify brands and counting, demonstrating technical excellence, exceptional merchant results, and continuous innovation leadership in the Shopify ecosystem.
Checkout+ (2025)
With reverse logistics costs rising, Checkout+ offers a breakthrough approach where shoppers can offset future return costs with a small upfront fee during checkout. This consumer-paid returns solution achieves 70% opt-in rates through strategic positioning and transparent value communication. Unlike other solutions that take revenue percentages, merchants keep 100% of collected fees while building sustainable buffers against return costs. The system automatically calculates fees based on merchant-specific return costs and policies.
60+ New Features (2025)
Our largest innovation sprint delivered comprehensive platform enhancements in a single month, including advanced return analytics with predictive insights, enhanced mobile experiences, expanded customization options, improved fraud detection with behavioral analysis, and additional ecommerce platform integrations. These features were showcased in detail during our Loop Launches Spring '25 webinar with implementation guidance and ROI optimization strategies.
Ready to transform your post purchase experience?
Every product launch stems from one core belief: the post-purchase experience should strengthen your brand, not drain it. Loop has evolved from a simple automation tool to a comprehensive post-purchase platform that drives revenue retention, reduces costs, and creates competitive advantages.
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With Loop, your brand can offer everything from returns, to exchanges, to tracking, to shopper incentives and more. Even better? These features build your business.