How Aviator Nation makes money on 56.6% of their returns

Since partnering with Loop, Aviator Nation has been able to lower their refund rate by 11% and increase upsells and exchanges.

Industry
Apparel

Previous returns solution
Return Magic

Key features
Instant Exchange
Shop Now
Bonus Credit

“I don’t want to discount the power that the return process has to generate extra revenue for the company. It’s really surprised us here at Aviator.”

Aviator Nation, a 1970’s-inspired lifestyle brand, handcrafts all of its apparel in its California factory.


The brand prioritizes designing high-quality, made-in-America products for a passionate community that values comfort, style, and ethical fashion.

Founded by Paige Mycoskie in 2006 in Venice Beach, the company has since grown into a global lifestyle brand with 17 destination retail locations, as well as a popular ecommerce line. 

As Aviator Nation grew its ecommerce business, of course, they also saw their return rate go up – sometimes, an item didn’t fit, or a customer decided they wanted to try a different style.


They needed to streamline the returns process – and while they initially chose an alternative option for managing returns, they ultimately came to Loop.


Once they realized that Loop’s returns management technology offered the features and functionality they needed to grow their business, it became an easy decision.

Since adopting Loop, the brand has seen:

  • 11% decrease in refund rate
  • 56.6% revenue retained from returns
  • $10.51 average upsell per return


Challenge

As Aviator Nation’s ecommerce line expanded, the brand adopted a returns management solution, Return Magic, to streamline the returns process.


Unfortunately, they found the solution to be lacking key features and functionality they needed. 


“The biggest pain point for us with Return Magic was the amount of time that it took us to have to manually process each return,” says Matthew Solusod, Aviator Nation’s Ecommerce Customer Service Manager. 


“And how much labor and effort it took away from actually being able to serve our customers quickly and effectively.”


When the brand began considering alternative returns management platforms, they gravitated towards Loop as a top contender.


“The thing that stood out to me the most with Loop was how customizable and how powerful and robust the system was,” says Solusod.


“There were quite a few platforms that offered similar features with similar pricing, but the amount of customization Loop offers was unmatched.”


Solution

After moving to Loop, Aviator Nation’s team was able to improve both their operational efficiency and the customer experience, leading to a better experience for both employees and customers.


They were also able to discover untapped sources of new revenue via exchanges and upsells. 


Some of the key benefits they discovered with Loop include: 

1) A streamlined user experience for customers

“The user experience for the customer became so much more clear and cut and dry,” says Solusod. “The customer knew what they would get in an exchange, and it’s really easy for them to self-service that process without us needing to assist it through customer service avenues.”

2) Reduced customer support workload

On the business side, “our customer service representatives are now able to purely focus on taking care of our customers,” adds Solusod.


“The less time our team is spending processing returns, the more they can focus on those high-value customer interactions and then ultimately keep those customers for the lifetime that they’re with our brand, making sure that they have a great experience every time.”

3) Additional revenue generation through exchanges and upsells

The brand has seen significant benefits from Loop’s Instant Exchange and Shop Now functions, which enable customers to instantly exchange a product for any other item in the store without returning to their shopping cart.


They’ll either be refunded or charged for the difference in price.

As a result, more customers have opted for exchanges over refunds than they had previously, with an 11% reduction in the overall refund rate.


The brand can incentivize more exchanges by offering “bonus credit” that the shopper can put towards the purchase price, which often leads them to purchase an item that’s more expensive than the original product even after applying the bonus credit.


“I don’t want to discount the power that the return process has to generate extra revenue for the company,” says Solusod. “It’s really surprised us here at Aviator.”