Loop, a leading platform for returns and reverse logistics, has announced the global release of Offset, an innovative pre-purchase returns solution now available to Australian merchants. Offset allows brands to offer free returns by providing customers the choice to pay a small upfront fee at checkout. This option helps merchants cover the high costs of returns and reverse logistics while giving shoppers the flexibility of free returns later.
With the growing expense of returns challenging brands globally, retailers like H&M, Zara, and ASOS have moved away from traditional free return policies. Today, over 60% of merchants charge a return fee to help manage these costs. Offset enables merchants to recover these expenses while preserving a high-quality customer experience that enhances revenue retention.
Offset offers merchants a powerful way to balance profitability and customer satisfaction. By being transparent about potential return fees during checkout, merchants can reduce potential friction and boost satisfaction among shoppers. Offset integrates with Loop’s premium returns services, making high-quality returns accessible even for brands with limited budgets.
Loop has designed Offset with flexibility in mind, offering two models to cater to diverse business needs:
- Offset Free: Designed for merchants in Australia with high return volumes, Offset Free covers all return software and domestic shipping costs, including Loop’s Return Bar® drop-off service. Merchants can recover costs through Offset fees collected from Australian shoppers.
- Offset Flex: Available to global merchants, Offset Flex allows brands to pass on return costs to consumers in a customizable way, enabling them to manage return costs by region, customer segment, and specific return scenarios.
“Offset represents a major advancement in supporting merchants with rising return costs, allowing them to maintain an excellent customer experience,” said Hannah Bravo, CEO of Loop. “Our goal at Loop is to help brands boost both profitability and customer loyalty, especially as we approach the holiday shopping season. Offset brings consumers the convenient return options they expect and elevates the overall return experience.”
Early adopters of Offset, including brands like Mac Duggal, Margaux, and Grant Stone, have already seen the benefits, reporting nearly a 10% increase in average order values, as shoppers feel more confident knowing returns are free. Over 80% of customers offered Offset choose to pay for this added security, highlighting the demand for easy, worry-free returns.
“We’re thrilled to see so many customers choosing Offset,” shared Emily Greenfield, Director of E-commerce at Mac Duggal. “With high return costs, we’re looking forward to optimizing savings as we head into peak shopping season.