Loop, the leading returns and reverse logistics platform, announced the launch of Offset, a new pre-purchase returns solution that helps merchants offset the high costs of returns and reverse logistics. Offset helps brands offer a premium returns experience at no cost by giving their customers the option to pay a small fee upfront during checkout in exchange for free returns later. The solution ensures merchants can recover return costs while giving customers peace of mind with easy, free returns.
With the rising costs of returns and reverse logistics posing significant challenges for brands, global retailers like H&M, Zara, and ASOS have shifted away from free return policies. In fact, over 60% of merchants charge a return fee in an effort to recover the costs of managing returns. With Offset, merchants have a seamless way to cover the operational and shipping costs of returns, including drop-off solutions like Return Bars®, while continuing to deliver a high-quality customer experience that optimizes revenue retention.
Offset equips merchants with a powerful way to deliver profitability and customer satisfaction at scale. Being transparent about return fees up-front reduces friction and dissatisfaction among shoppers later. The power of Offset gives merchants access to Loop’s premium returns experience for free, regardless of budget constraints.
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As returns experts, Loop knows that one size doesn’t fit all – which is why merchants can choose between two Offset models based on their business needs. The shopper experience is the same for both models: shoppers have the option to pay a small fee upfront during checkout in exchange for free returns later.
- Offset Free: Merchants looking to free up cash flow can have Loop cover all return software and shipping costs, including Return Bar® drop-offs. In exchange, Loop collects return fees from shoppers through Offset.
- Offset Flex: Merchants who want to shift return costs to consumers in a targeted way can own the Offset revenue stream and recoup return software & shipping costs. Offset Flex allows merchants to personalize the experience for different customer segments, regions, and return outcomes.
“Offset marks a major step forward in helping merchants recoup the rising costs of returns while continuing to deliver a stellar customer experience,” said Hannah Bravo, CEO of Loop. “At Loop, we’re committed to ensuring our partner brands improve both profitability and customer loyalty, especially as they prepare for the peak shopping season. Offset offers the world-class, convenient return options consumers expect today and represents the evolution of the returns experience.”
Join early adopters including Mac Duggal, TA3 Swim, Grant Stone, and more who are using Offset to cover their return costs ahead of peak season. Loop’s merchants testing Offset in beta witnessed a nearly 10% increase in net average order values by giving shoppers the assurance of a free return, without increasing overall return rates. Additionally, over 80% of shoppers who are given the option to purchase Offset choose to do so, demonstrating that shoppers value the peace of mind from free returns.
SOURCE: Businesswire