Insights
User insightProblemDevelopingLow

High cost of free returns eroding margins

Returns Fraud & Loss Prevention

IndustryRetail
Added Jun 23, 2026

Free returns have become a consumer expectation, but the cost is eroding margins and most brands treat returns as a pure cost center.

Analysis:

Turning returns into a retention opportunity — through instant exchanges, store credit incentives, and data-driven return reduction — is a proven wedge. Loop Returns has demonstrated this model. The opportunity is in the intelligence layer that optimizes return policies across the customer base.

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