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
On average, 70% of customers opt-in to paying the small fee, but far less than that actually return product. This means you capture more revenue than you spend on returns, allowing you to completely cover the cost of return shipping & return software.
Other consumer paid solutions keep 100% of your extra revenue earned through fees. Use the calculator below to estimate how much more you could make with Loop's revenue share.
We've made a few assumptions here ($2.98 fee at checkout, $10 fee at return). Your numbers might look a bit different based on return rates and shipping costs - let's crunch them together.
Other solutions
Software cost
$0
Return shipping cost
$0
Hidden costs
$109,000
Extra annual revenue
$0
With Checkout+
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
Kortnee S
Product & Operations Manager
"Absolutely love it. We’re seeing 63-68% of orders opt-in, especially size-bracketing orders. With Loop's exchange and upsell options, we’re seeing a huge rise in customers swapping styles & sizes. It's saving us a ton of money."
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