When you’re scaling up an ecommerce store, you probably already know that your return requests go up in line with your new sales.

As many as 40% of ecommerce sales may end in a return, making refunds an all-too-common part of life for ecommerce merchants of all types.

But rather than loathing or fearing returns, you can make your streamlined and simplified returns process part of a superior customer experience that differentiates you from competitors.

By using a returns management solution that automates the returns process and provides customers with self-service options for refunds and exchanges, you’ll be able to consolidate the work of your customer support team and save their bandwidth for more specialized requests while enabling customers to set up returns in the space of seconds, rather than the hours or even days it might take when using manual support.

And with the right returns management solution in place, you’ll even be able to retain more revenue from your customer returns by incentivizing exchanges, which will help to grow each customer’s lifetime value to your brand.

When considering returns management solutions, you have a few options to consider, including:

Believe it or not, returns management software varies a great deal. So to help you pick the right one for your customer experience, we’re comparing two major options: Loop and Returnly.

Off the bat, there’s one big difference between these two: Loop is the only returns software purpose-built for Shopify. As a result, it’s going to be fast, more customizable, and better integrated into the Shopify experience overall.

Despite that advantage, there are still some key differences worth exploring. Before we get too deep into our comparison though, let’s take a look at a few common features that all returns platforms share.

What does a returns management solution do?

Simply put, returns management platforms offer a suite of tools that allow ecommerce brands to optimize their returns workflow. A great return software will allow the entire returns process to be customized.

The features vary across platforms, but here are the usual suspects:

  • Printable shipping labels
  • Exchanges handling
  • Store credit handling
  • Returns portals
  • Returns data
  • Return shipping management

Optimizing the returns touchpoint will boost more than your support team. It can actually boost profits. Brands focus on the goal of reducing returns overall, but some returns are unavoidable.

The returns touchpoint is where disappointment can be turned into dollars. The combination of the right software and the right strategy can convert a disappointed buyer into a lifelong customer.

By providing customers with easy returns, and other options such as exchanging a product for a different size without needing to initiate another transaction, you can provide a great customer experience and re-engage them with your brand.

How does Loop compare to Returnly?

Full disclosure: if you missed the logo, we are the makers of Loop. Truth be told, we get asked to compare ourselves against Returnly pretty often. So we’re writing this article to answer the question as fairly as possible.

In this post, we’re going to look at three major points of comparison:

  • Integrations
  • Exchanges
  • Unique features

1. Integrations

When comparing these two returns solutions, integrations are a good place to start. If you are a scaling Shopify brand, you’ll surely be working with a tech stack covering shipping, logistics, and other ecommerce must-haves.

So which tool offers the best integrations? The short answer: they both do. The long answer? It depends.

If we are talking about the big ecommerce apps, both returns platforms have you covered. In total, Returnly has 36 integrations ready to use. Loop Returns has 45.

There are a few unique integrations offered by each solution though. For example, Loop is the only returns platform to offer a Zapier integration, which will make it a simple process to build custom workflows across various apps.

2. Exchanges

Here’s one of the biggest differences between Loop and Returnly: exchanges. If you read the product descriptions, they may appear to operate the same. But there are some differences that turn out to be game-changers.

A peek under the hood reveals a subtle yet dramatic distinction in how exchanges function when comparing Loop to Returnly. We’re talking about how exchanges are handled in the backend of Shopify.

Loop built exchanges on top of Discount Codes:

  • Discounts do not inflate Net Sales. 
  • Discounts are clearer for your accountant. 
  • Discounts power Bonus Credit (more on that later)

Returnly built exchanges on top of Gift Cards:

  • Gift Cards inflate Net Sales. 
  • Gift Cards are a nightmare for your accountant. 
  • Gift Cards have cash value. 
  • Returnly Gift Cards can’t add Bonus Credit.

For the full deep-dive on what the above difference means for your accounting department, our team will gladly walk you through it step by step. If you’re looking for that a-ha! moment, book a demo.

3. Unique features


  • Bonus credit: With Bonus Credit, the Returns touchpoint is instantly transformed into an upsell opportunity like no other. You’ve won the customer’s heart with an easy returns process, but Bonus Credit allows brands to further guide people toward exchanges.
  • Instant exchanges: What if customers could exchange products on your website and have their new items sent immediately? With Instant Exchanges, you can do that. Plus, Loop’s system allows brands to place a credit card hold until the returned items are received.
  • Workflows: Loop enables your brand to set specific conditions for whether you’ll process a refund, offer an exchange, or even allow the customer to keep the item while receiving a full refund. Using conditional logic workflows, you can easily set policies and automate approvals based on a wide variety of conditions, without pestering your customer support agents to weigh in.


  • In-Store Returns: With In-Store Returns, Returnly connects your online and in-store systems to enable contactless return drop-offs at your store locations.
  • Green Returns: Green Returns is an automation that asks customers questions to determine if leaving the item with the customer might end up being more cost-effective (and also good for the environment).


Which platform do you think will work best for you? Returnly and Loop are both out here doing it – and both are able to count many great brands as happy customers. We like Loop.

Sure we’re biased, but we’ll back it up with talk, data, proof, and a smile.

Book a demo to learn more.