Tariff Relief Toolkit: 6 strategies to offset rising costs
Allison Bailey
·April 21, 2025
Recent tariff increases are squeezing margins for even the largest retail brands. While you can't control global trade policies, you can optimize your returns strategy to offset these costs. Here's how Loop brands are taking steps to turn returns into a competitive advantage that protects profitability.
1. Save on unsaleable or low-margin returns
For items that aren't worth the cost of return shipping, offering customers the option to “keep the item” can save time and money—while still providing a positive experience.
Next steps:
- Use a value threshold (e.g., $27 for apparel)
- Limit the number of keeps per customer to minimize abuse
2. Eliminate costs, unlock revenue with Offset Checkout+
By moving to a consumer-paid returns model like Offset Checkout+, you can free up capital while gaining a new revenue stream through consumer fees. This approach removes returns software and shipping costs while generating incremental revenue. It’s simple to implement and directly improves your bottom line, fast.
3. Introduce return fees without losing loyalty
Charging a fee for returns doesn’t have to mean sacrificing customer trust. In fact, 63% of merchants are already implementing handling fees—with no negative impact on acquisition or retention.
Quick tip: Per Item Restock Fees: For categories where bracketing is common (like swimwear or occasion wear), adding a per-item restocking fee helps recoup costs. These fees can be configured using flexible workflows to meet your unique needs.
4. Address fraud with smarter workflows
On average, 3% of returns across the network are flagged as fraudulent. With fraud detection powered by machine learning, it's possible to automatically identify and block abusive behavior before it results in lost revenue. Activate fraud prevention workflows to ensure only legitimate returns are processed.
5. Process returns in the US –immediately
For international brands, it no longer makes sense to ship returns back overseas just to ship products back to a US consumer and get hit with a tariff.
If you are in this position with a primary FC outside of the US, Loop can connect you with a trusted warehouse partner who will be exclusively processing returns for Loop brands.
6. Tap into Loop’s trusted partner network
Need faster fulfillment, global support, or better recovery on returns? Loop can connect you with:
- A Loop-preferred 3PL partner. We have a vast network of 3PL partners who our teams have visited and work with daily. Processing returns at these partners can ensure we tackle problems before they occur.
- Resale or refurbishment partners to monetize B, C and, D grade inventory
- Providers for consultation on optimizing international returns and supply chains
There’s no one-size-fits-all solution when it comes to tackling tariffs—but these strategies offer a strong starting point for reducing costs and unlocking new value through returns.
Bonus Resource: 2025 Trends Report
Looking for deeper strategic insights? The 2025 Trends Report breaks down emerging themes in consumer behavior, returns policies, and post-purchase experience design—all backed by network-wide data.
Unlock the insightsFor help activating any of these solutions, reach out to your Loop contact or explore resources in the Loop Help Center.
Not a Loop brand yet? Get started by booking a demo.
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