Loop has introduced a new pre-purchase returns solution, Offset, designed to help UK merchants manage the high costs associated with returns and reverse logistics.
Offset provides a mechanism for merchants to offer hassle-free returns by allowing customers to pay a nominal fee at checkout, which grants them free returns later. This model aims to counteract the growing trend of charging return fees, a practice adopted by over 60% of merchants as a means to cope with escalating return expenses.
With notable retailers such as H&M, Zara, and ASOS moving away from policies offering free returns, Offset presents an opportunity for businesses to maintain a level of quality in their customer experience while mitigating operational and shipping expenditures.
Offset brings two models tailored to different merchant needs. The Offset Free model is targeted at merchants with a significant return volume in the US, offering Loop's coverage of return software and domestic shipping costs. Meanwhile, the Offset Flex model allows global merchants to personalise their approach, enabling them to handle the Offset revenue stream and adjust the return management strategy based on customer segments or regions.
Hannah Bravo, CEO of Loop, commented, "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. Offset offers the world-class, convenient return options consumers expect today and represents the evolution of the returns experience."
Among the early adopters of Offset are the fashion brands Mac Duggal, Margaux, and Grant Stone. These companies have reportedly seen a near 10% uplift in average order values since implementing the solution, attributed to the security of offering free returns without driving up overall return rates. Moreover, the fact that over 80% of consumers choose the Offset option suggests a strong consumer preference towards this guarantee of free return as added value.
Emily Greenfield, Director of E-commerce at Mac Duggal, stated, "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 to optimise savings as we approach the upcoming holiday shopping season."
