Loop now offers an app that lets Shopify merchants use data to optimize their returns processes.
The new Benchmarks by Loop automatically compares a merchant’s refund rate, top refunded products, time to repeat purchase and other returns data to industry benchmarks, Loop said in a Wednesday (March 8) press release.
The app brings this data together in a single dashboard, defines each metric, gives the merchant’s results and compares the results to those of similar brands, according to the release.
“The faster merchants can find ways to optimize their returns processes, the better for their bottom line,” Loop Senior Vice President of Marketing Tasha Reasor said in the release. “Benchmarks by Loop is the first of many new products we plan on releasing to help Shopify merchants be successful.”
As PYMNTS reported Monday (March 6), returns are cost-intensive and can be a true logistical nightmare, increase fraud and cause a dent in profits. But, at the same time, enabling a seamless and free returns experience can mean bringing in new customers, increasing average order value (AOV), boosting sales and creating return customers.
PYMNTS research has found that consumers expect a frictionless experience, from pre-purchase to post-purchase. For example, U.S. shoppers who use easy return options are 52% more satisfied than those who do not, according to the “2023 Global Digital Shopping Index,” a PYMNTS and Cybersource collaboration.
Online sellers walk a fine line when it comes to returns, needing to keep customers happy and confident while also keeping an eye on margins, Drew Cook, chief financial officer and head of operations at sustainable clothing brand Pact, told PYMNTS’ Karen Webster in an interview posted Feb. 3.
“We start from a place that consumers have good intentions, and you manage the exceptions outside of that,” Cook said.
Benchmarks by Loop is available at no charge in the Shopify App Store.
It joins the company’s lineup of products that also includes a return management platform that enables Shopify merchants to “transform returns into exchanges” by offering instant exchanges, shop now, bonus credit and other features, according to the release.
By doing so, merchants can improve their customer loyalty, revenue retention and reverse logistics costs, the release said.
“Today’s growing merchants must understand how their returns impact their bottom line to gain a competitive advantage,” Loop said in the release.
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