Loop launches Offset to manage return costs efficiently

Loop has launched Offset, a new pre-purchase returns solution designed to help Australian merchants manage return logistics effectively.

As the holiday shopping season approaches, many Australian retailers are focusing on returns and reverse logistics to maintain profitability and customer relations. A significant rise in online shopping has led to increased complexity and costs in processing returns, resulting in a decline in free return policies. Currently, 62% of Loop's merchants impose return fees, a 47% increase since the start of 2020.

Offset aims to streamline the returns process by offering customers the option to pay a small upfront fee at checkout in exchange for the promise of free returns later. This solution allows merchants to recover return costs without compromising customer satisfaction.

CEO of Loop, Hannah Bravo, stated, "Offset marks a major step forward in helping merchants recoup the rising costs of returns while continuing to deliver a stellar customer experience. 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."

Many global retailers, such as H&M, Zara, and ASOS, have abandoned free return policies due to escalating return and reverse logistics costs. By using Offset, merchants can manage these costs while maintaining a satisfying customer experience.

Offset provides two models for merchants, allowing customization based on business requirements while keeping the shopper experience consistent. Shoppers can choose to pay an upfront fee for free returns. "Offset Free" is suitable for merchants with high return volumes in Australia, with Loop covering return software and domestic shipping costs. Meanwhile, "Offset Flex" accommodates merchants worldwide, enabling them to own the revenue stream and personalize the experience for different customer segments.

Early adopters of Offset, including Mac Duggal, Margaux, and Grant Stone, have reported nearly a 10% increase in average order values as a result of offering free returns assurance without increasing overall return rates.

Emily Greenfield, Director of E-commerce at Mac Duggal, said, "We are excited to see a significant portion of our customers embracing Offset. With the high cost of returns, we look forward to leveraging the tool to continue optimizing savings as we approach the upcoming holiday shopping season."

Overall, Offset provides business owners with a way to recover operational and shipping costs associated with returns while enhancing overall profitability and customer satisfaction. Loop reports that over 80% of shoppers opt to purchase Offset, indicating consumer appreciation for the security of free returns.