The most important metric for returns management is the exchange rate — what percentage of return requests result in an exchange rather than a refund. Exchanges retain revenue; refunds lose it.
Loop Returns' exchange workflow:
1. Customer opens return portal
2. Loop presents: return for refund OR exchange for a different item
3. If exchange: customer can choose a different size, colour, or even a different product
4. Loop offers an incentive for exchanges (e.g., "Exchange and get an extra $10 store credit")
5. New item ships immediately when exchange is selected
6. Customer sends original item back
Loop's exchange-first workflow and incentive system typically converts 20–40% of returns into exchanges rather than refunds.
Returnly's exchange workflow:
1. Customer opens return portal
2. Customer selects reason and selects return or exchange
3. If exchange: customer uses Returnly Instant Exchange credit to shop
4. New item ships before original is returned
5. Customer has a window to return the original item
Both workflows prioritise exchange over refund. The Returnly Instant Exchange model is unique in allowing the new item to ship before the return is received.
Returnly's most distinctive feature. When a customer requests an exchange: - Returnly funds an instant credit that allows the customer to shop immediately - The new item ships right away — no waiting for the return to be processed - Returnly assumes the risk of the return — if the customer doesn't return the original, Returnly handles the collection
For customers who need the replacement item urgently (size exchange, damaged item), Instant Exchange dramatically improves the return experience. The perception of getting the new item before sending the old one back drives higher customer satisfaction scores.
Loop's analytics dashboard:
- Return rate by product, size, reason, and SKU
- Exchange rate by flow (return type)
- Revenue retained through exchanges vs refunds
- Return reason trends over time
- NPS score from return experience
Returnly's analytics:
- Return volume and value
- Exchange conversion rates
- Instant Exchange performance
- Return reason tracking
Both platforms provide the data needed to identify return patterns and make product or size chart improvements. Loop's analytics are generally considered more actionable for merchandising decisions.
Loop Returns:
- Starter: $155/month (500 returns/month)
- Essential: $575/month (unlimited returns)
- Advanced: $900/month
- Plus: Custom
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Try Sellable free →Returnly:
- Pricing is custom (Returnly's Affirm acquisition moved it to enterprise pricing)
- Not publicly listed; expect comparable or higher than Loop for mid-market plans
Loop's transparent, tier-based pricing is more accessible for mid-market brands. Returnly's enterprise model requires a sales conversation.
Loop Returns for most DTC Shopify brands. The transparent pricing, exchange-first workflow, and exchange incentive features are well-suited to the standard DTC return management use case.
Returnly for brands where Instant Exchange is a specific differentiator for their customer experience — fashion brands with high size-exchange rates, premium brands where immediate replacement is a service quality commitment.
For brands with optimised return flows, exchange rates of 25–40% are achievable. Starting benchmarks are often 15–20%. Loop and Returnly both report that brands using exchange-incentive features (bonus store credit for exchange) see exchange rates 15–25% higher than without incentives. Each exchanged return retains 100% of the sale revenue.
Yes. Loop Returns supports international return management, including generating international return labels and managing multi-currency refund processing. Returnly also supports international operations. Both platforms' international capabilities are more limited than their US functionality — verify your specific international return requirements before committing.
Loop installs as a Shopify app with a native integration. When a return is processed through Loop, it creates the appropriate Shopify refund or exchange order automatically. Return status updates sync to Shopify order management. For Shopify Plus brands, Loop integrates with Shopify Flow for custom automation.
Returns management platforms ROI comes from: (1) support cost reduction (self-serve portal eliminates return-related support tickets), (2) exchange revenue retention (each exchange saves the full refund value), and (3) operational time savings (automated label generation, tracking). Brands typically see payback periods of 1–3 months at $1M+ annual revenue with significant return volume.
Yes. Loop's branded returns portal is white-labelled — your brand name, colours, and logo appear throughout the customer experience. Customers can access the portal via a link on your website or order confirmation email. The branded experience is important for customer trust and brand consistency, particularly for premium DTC brands.
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