We’ve just experienced record-breaking return volume.
Here’s how it happened.
During this year’s Black Friday Cyber Monday, Shopify merchants who use Loop saw a 24% increase in sales year-over-year (YoY). That’s 7% higher than those who don’t use our return management software.
Shoppers who experience Loop are more likely to shop again, faster, than those who don’t–regardless of time of year–which sets up Shopify merchants to reap the benefits of shopper loyalty during the holidays.
This spike in sales led to a spike in returns–a 31% increase YoY to be exact.
In fact, on December 27th, 2022, we processed a return every 1.25 seconds. Our busiest day ever. And during our busiest hour, we peaked at about 2 returns per second.
And although returns outpaced sales, that’s not bad news. It’s actually good news because Shopify merchants who use Loop also saw an 11% decrease in refunds this quarter. And a 38% increase in upsell value YoY.
In other words, Shopify merchants who used Loop experienced higher sales volume, lower return costs, and increased revenue rates. Even at the face of record-breaking return volume.
“We’re thrilled to have played even a small role in the successful holiday season of our merchants,” says Loop co-founder and CEO, Jonathan Poma. “Especially at a time where gifts are bought for others, sizes and preferences are going to be wrong. It’s a critical time of year to deliver a phenomenal returns experience. And the results our merchants got proves it.”
“The holiday season also creates unique opportunities for Shopify merchants to make a good first impression with shoppers who may be returning an item from a brand they’ve not experienced before,” he added. “So we take pride in decreasing refund rates and helping these holiday gift recipients find a product they’re going to love. And helping them build new long-lasting relationships with our merchants.”
But that’s not where this story ends.
Let’s break down our team’s findings below.
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Record Return Volume
The 2022 Holiday Returns Season saw a record-breaking increase in return volume.
From December 26 to December 30, 2022, Loop managed around 300,000 returns. That’s a 31% increase year-over-year when compared to the same time period last year. Our three busiest days were:
- December 26, 2022–65K processed returns
- December 27, 2022–68K processed returns
- December 28, 2022–62K processed returns
That’s a lot of returns to process. And that’s why using a return management software like Loop is so important. It allows Shopify merchants to better manage their returns especially during peak seasons.
“We anticipated a spike in returns,” says Poma. “But we were blown away by these numbers. This is a lot of returns to handle for independent businesses of any size, so we’re glad we can support our Shopify merchants and automate their returns process.”
Also, if you’d indulge us for just a moment, we’d like to offer some quick table napkin math: If Loop saves Shopify merchants 3-minutes on average per return, and we saw 300,000 returns in the last 5-days. That’s 15,000 hours saved. Or enough time to watch season one of White Lotus about 2,500 times.
Okay okay, that was fun. But we’re not done quite yet. Because when it comes to refunds and upsell value, that’s where things really took off.
Read more: 4 ways to improve customer experience through automation
Fewer Refunds for Shopify Merchants Who Use Loop
The 2022 Holiday Returns Season saw a significant decrease in refunds.
According to initial findings from Loop’s data team, the 2022 Holiday Returns Season refund rate dropped by a whopping 11%.
“Refunds are expensive,” says Loop’s COO, Hannah Bravo. “When returns end in refunds, merchants not only lose the original sale, but they incur additional costs. Plus, they’re more likely to lose that shopper forever.”
“That’s why we’re so proud to deliver a great return experience year round,” she added. “Especially during the holiday season, lowering refunds is a huge unlock for our merchants. It means they’re lowering costs and creating new long-term relationships with their customers.”
Fewer refunds is a big win for independent businesses on Shopify and Shopify Plus who use Loop, but it’s not the only good thing coming out of this holiday season.
Read more: How 36% of DUER’s customers choose exchanges over refunds with Loop
Greater Upsell Numbers for Shopify Merchants Who Use Loop
The 2022 Holiday Returns Season saw a significant increase in upsell value–additional dollars retained during a return.
According to initial findings from Loop’s data team, the 2022 Holiday Returns Season upsell value increased by 38%.
We really need let this stat breathe for a moment.
So here’s a quick breakdown for you to enjoy:
Let’s go back to the beginning of this story.
Remember how we said Shopify merchants who use Loop saw a 24% increase in sales during Black Friday Cyber Monday, which led to a 31% increase in returns? And how we told you this was actually good news?
This is exactly why.
Yes, we helped Shopify merchants lower their refund rates by 11%. An amazing accomplishment.
But if you take a look at the 38% increase in upsell value, you’ll notice that upsell value actually outpaced sales by 58%. That’s enormously good news, especially in a year that has thrown traditional expectations for holiday earnings out the window in many ways.
That means Shopify merchants who use Loop not only outpaced sales performance compared to other Shopify merchants who don’t use Loop, but they also decreased their refund rate and increased their revenue–all during peak returns season.
“We go to bed every night and wake up every morning obsessed with helping our merchants drive more sales and make returns more profitable,” says Poma. “It’s thrilling to see the impact of our return features like Shop Now, Instant Exchange, and Bonus Credit play such a massive role in making returns profitable for our merchants.”
“I’m so proud of our team. And of what we do for our merchants everyday,” he added.
Want to find out how Loop can help you achieve these results? Book a demo today.
Loop is a returns management app that grows with Shopify brands. And makes returns stress-free for you and your shoppers. Over 1,800 Shopify brands trust Loop to lower return costs, increase revenue, and drive repeat purchases. Learn more at loopreturns.com