Loop Acquires Customer Experience Platform Wonderment

Returns company Loop has acquired customer experience platform Wonderment.

The deal, announced Tuesday (Dec. 10) gives merchants access to real-time shipment insights, predictive carrier analytics, and streamlined returns processes — all from a single interface built by Shopify veterans with knowledge of that company’s system.

“By joining forces with Wonderment, we’re taking a significant step forward in our mission to help merchants simplify commerce operations and build enduring relationships with their customers,” Hannah Bravo, CEO of Loop, said in a news release.

“Our newly combined platform will unlock our merchants’ ability to turn returns and order tracking from a source of frustration into an opportunity to delight customers, drive retention, and fuel growth.”

“Joining Loop marks an exciting new chapter,” added Jessica Meher, CEO of Wonderment. “Our shared commitment to building exceptional products, optimizing customer and merchant experiences, and driving growth for merchants made this partnership a natural fit. Together, we’ll make a lasting impact on the Shopify ecosystem by helping brands deliver transparency and trust throughout the entire post-purchase journey.”

PYMNTS spoke with Bravo earlier this year about the problem of returns fraud, which cost American merchants an estimated $101 billion last year.

“The tightening economy has led to consumers getting creative when it comes to returns fraud, and online shopping is just making it easier,” she told PYMNTS. “Along with this, the intent to use items only temporarily and dissatisfaction with product quality are also driving factors in the rise of policy abuse.”

This behavior, Bravo went on to say, “might be a reaction to overly lenient returns policies that were prevalent during the eCommerce boom and the pandemic, when companies prioritized shopper convenience over profitability.”

However, despite its financial toll, Bravo said returns fraud presents a major opportunity for both brands and solution providers.

“Returns fraud and policy abuse have become difficult behaviors for retailers to prevent, turning into a major drag on many brands’ margins and contributing to major financial losses,” she said.

Meanwhile, Loop recently introduced a solution to help merchants offset the cost of returns and reverse logistics. The tool, known as Offset, lets brands offer customers the chance to pay a small upfront fee during checkout in exchange for free returns later.

“With the rising costs of returns and reverse logistics posing significant challenges for brands, global retailers like H&M, Zara and ASOS have shifted away from free return policies,” Loop said in the release. “In fact, over 60% of merchants today charge a return fee in an effort to recover the costs of managing returns.”