Loop, a leading returns and reverse logistics platform, has announced the UK launch of Offset, a new solution designed to help retailers manage the escalating costs of returns. With the goal of balancing profitability with customer satisfaction, Offset offers UK merchants a pre-purchase option for customers, allowing them to pay a small fee at checkout for free returns later. This initiative provides retailers a sustainable way to fund return costs while enhancing the customer experience.
The Offset model comes at a time when major brands, including H&M, Zara, and ASOS, have started charging return fees due to the high costs associated with returns management and reverse logistics. Over 60% of merchants now charge for returns as they attempt to offset these expenses. Loop’s Offset offers a unique solution that enables retailers to maintain a premium returns experience without absorbing these costs entirely.
Offset’s pre-purchase fee option allows merchants to communicate potential return costs transparently at checkout, providing customers with a clear choice. In doing so, Offset reduces the likelihood of friction and dissatisfaction among shoppers who might otherwise be surprised by return fees after their purchase. The tool enables brands to recoup their costs and improve overall satisfaction, which is especially crucial as the peak shopping season approaches.
Loop’s Offset solution offers two models tailored to merchant needs:
- Offset Free – This model is aimed at US-based merchants with high return volumes, particularly those seeking to manage cash flow efficiently. Through Offset Free, Loop covers return software and domestic shipping costs in the US, including Return Bar® drop-offs, and recoups these costs by charging customers a fee upfront at checkout.
- Offset Flex – This model is geared towards global merchants who wish to apply Offset strategically across different regions, customer segments, and return scenarios. Offset Flex allows retailers to personalise the Offset experience, maintain control over return-related revenue, and optimise return costs without compromising on customer satisfaction.
Offset’s early adopters, including brands such as Mac Duggal, Margaux, and Grant Stone, have reported encouraging results. On average, merchants using Offset saw a nearly 10% increase in order values, as the added assurance of free returns has given shoppers greater confidence in their purchases. Additionally, over 80% of customers offered Offset have chosen to add it to their purchase, highlighting consumer interest in flexible return options.
Hannah Bravo, CEO of Loop, explained the importance of Offset in helping brands navigate the complex landscape of returns. “Offset marks a major step forward in helping merchants recoup the rising costs of returns while continuing to deliver a stellar customer experience,” Bravo stated. “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.”
Mac Duggal’s Director of E-commerce, Emily Greenfield, noted the benefits of Offset as the holiday season approaches. “With the high cost of returns, we look forward to leveraging the tool to continue optimising savings,” Greenfield shared.
The launch of Offset demonstrates Loop’s commitment to helping retailers strike a balance between operational costs and customer experience, making it a timely solution for a sector grappling with the financial pressures of reverse logistics. To learn more about Offset and how it can transform your brand’s returns experience, visit loopreturns.com/returns/offset
