Loop spent the week highlighting how ecommerce return policies have become a core revenue and loyalty lever for retailers in both the U.K. and U.S., backed by new proprietary research. The company’s report, “The Returns Revenue Gap,” draws on surveys of 1,000 consumers and 200 retail decision‑makers in each market to quantify how returns experiences shape buying behavior and margins.
Across geographies, Loop finds that over half of shoppers have abandoned purchases or stopped buying from a retailer due to its returns policy, and more than 58% routinely check policies before ordering online. Returns charges are particularly influential, with 92% of consumers saying fees affect their shopping decisions, underscoring the direct link between post‑purchase design and top‑line performance.
The research highlights how normalized return habits are shifting risk back to retailers, as roughly 30% of U.S. consumers and 32% of U.K. consumers deliberately order multiple sizes or styles intending to send some back. Practices such as wardrobing, misrepresented reasons for returns and swapping items in the box are now widespread, with up to 79% of brands reporting fraud or abuse issues.
Despite this, many retailers still rely on manual processes, with just 16% of U.K. and 19% of U.S. brands using AI or machine‑learning tools for fraud detection and returns review. Loop positions its operations platform, which already processes more than 100 million returns for over 5,000 brands, as infrastructure that can automate workflows, tighten risk controls and improve customer communication.
The report also reveals a strategic disconnect: while around three‑quarters of retailers acknowledge that returns experiences heavily influence loyalty, a small minority rank customer churn as a primary post‑purchase concern. Most focus on immediate cost and lost revenue, even as fees and friction visibly push customers toward competitors and impact long‑term lifetime value.
Loop CEO Hannah Bravo emphasizes that returns have moved from a back‑office cost center to a front‑line growth engine, citing data that 87% of shoppers would accept an exchange under the right conditions. By applying this behavior to actual refund volumes, Loop estimates more than $2 billion globally could be converted from refunds into retained revenue via exchanges and credit.
For investors and retail executives, the week’s findings suggest that brands which treat returns, exchanges, tracking and refunds as an integrated loyalty function may be better positioned to protect margins and share of wallet. Overall, the research reinforces Loop’s role in a growing returns economy, where technology‑driven post‑purchase experiences are increasingly critical to ecommerce performance.