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.
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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