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
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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