Loop's exchange flow is its most valuable feature. Done right, it converts 30-50 percent of would-be refunds into exchanges and bonus credit. Done wrong, it adds friction without changing customer behavior. This SOP configures it to convert.
Every refund converted to exchange or bonus credit is retained revenue. At scale this is hundreds of thousands of dollars per year. The trick is to make exchanging easier than refunding, not harder.
Customer refunding $100 sees $110-120 in store credit. The boost is what converts the choice.
Apparel: different size, different color. Beauty: different shade. Don't restrict cross-category if your catalog supports it.
Ship the new item before the return arrives. Apparel brands above $5M ARR should always offer this.
Cap exchanges per customer per 90 days. Block known fraudulent emails. Flag customers with high return-to-purchase ratio.
Free return label for exchanges, paid for refunds. The shipping cost differential drives exchange behavior.
Show the bonus credit upfront. Don't bury it in step 3 of the return flow.
Place an order, return it, choose exchange. Note any friction. Customers won't share their friction, they'll just refund.
Record your screen while performing the loop returns exchange flow. ReccordSOP turns the recording into a SOP with timestamped screenshots. When your live setup changes, drift detection flags it.
Generate this SOP free15 percent is the sweet spot. Below 10 percent doesn't shift behavior. Above 20 percent loses too much margin.
Instant for in-stock items if your AOV is over $50. Wait-for-return for everything else.
Cap exchanges per customer per quarter. Flag high-return-rate customers for manual review. Monitor reseller patterns.
I built ReccordSOP after watching too many DTC ops teams lose months to undocumented workflows. These SOPs are battle-tested with Shopify operators running $1M to $50M brands.
Last reviewed June 1, 2026