Loop, the leading returns and reverse logistics platform, has officially announced the launch of its latest solution called Offset, which happens to be a new pre-purchase returns product geared towards helping merchants offset the high costs of returns and reverse logistics. According to certain reports, the solution in question brings to the fore a premium returns experience at no cost, and it does that by giving customers the option to pay a small fee upfront during checkout in exchange for free returns later. Such a setup, like you can guess, ensures that merchants can recover return costs, while simultaneously giving customers peace of mind with easy, free returns.
Before we dig any further, though, we ought to acknowledge how rising costs of returns and reverse logistics continue to be a significant challenge for brands across the globe, with retailers like H&M, Zara, and ASOS already shifting away from free return policies. More on the same would reveal that more than 60% of merchants today charge a return fee in an effort to recover the costs of managing returns.
To cater to this emerging need, Offset covers the operational and shipping costs of returns, including drop-off solutions like Return Bars®. This it does while continuing to deliver a high-quality customer experience that optimizes revenue retention.
Moving on, Offset also hands merchants an uninterrupted access of a powerful way to deliver profitability and customer satisfaction at scale.
“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.”
Among other things, we ought to mention that Offset is available, at launch, in two separate models i.e. Offset Free and Offset Flex. Beginning from the former, it is basically designed to help those merchants who are looking for free up cash flow, as it gets Loop to cover all return software and shipping costs. In exchange, the company collects return fees from shoppers through Offset.
Turning our attention towards Offset Flex, it arrives on the scene with an ability to help merchants looking for a shift return of costs to consumers in a targeted way. As for how it does that, the answer resides in helping merchants own their Offset revenue stream and recoup return software & shipping costs. Furthermore, it allows merchants to personalize the experience for different customer segments, regions, and return outcomes.
Already adopted by the likes of Mac Duggal, TA3 Swim, Grant Stone, and more, the solution’s early deployment has witnessed a nearly 10% increase in net average order values by giving shoppers the assurance of a free return, without increasing overall return rates. Apart from that, well over 80% of shoppers, who were given the option to purchase Offset, also went ahead and bought it.
Founded in 2021, Loop’s rise up the ranks stems from being the leading post-purchase platform optimizing returns, exchanges, and reverse logistics at scale. At present, the company offers Workflows, Instant Exchanges, Shop Now, Bonus Credit, and Offset to help global brands unlock cost savings, increase customer lifetime value, and retain more revenue. Loop’s excellence in what does it can also be understood once you consider the company has, thus far, processed over 55 million returns, and alongside that, it has helped merchants retain more than $2 billion in revenue over the past five years. Another example regarding the same is rooted in Loop’s clientele, which includes more than 4,000 of the world’s most-loved Shopify brands.
“We are excited to see a significant portion of our customers embracing Offset,” said Emily Greenfield, Director of E-commerce at Mac Duggal. “With the high cost of returns, we look forward to leveraging the tool to continue to optimize savings as we approach the upcoming holiday shopping season.”
