specification: FinOps Framework
specificationVersion: '1.0'
provider: Loop Returns
providerId: loop-returns
created: '2026-06-12'
modified: '2026-06-12'
description: >-
  FinOps profile for Loop Returns API consumption. Loop Returns uses a hybrid
  billing model combining a flat monthly SaaS subscription (plan tier) with
  variable per-shipment costs for return labels. Cost optimization centers on
  carrier selection, exchange rate conversion, and reducing outright refunds
  through exchange nudges.
billingModel: hybrid
billingComponents:
  - name: Platform Subscription
    type: fixed
    description: Monthly flat fee based on plan tier (Checkout+ free, Essential $155+, Advanced $340+)
    currency: USD
  - name: Return Shipping Labels
    type: variable
    description: Per-shipment label cost for carrier postage on return shipments, rate-shopped across carriers
    currency: USD
  - name: Instant Exchange Hold
    type: conditional
    description: Card hold placed at exchange creation; released or charged based on return outcome
    currency: USD
focusColumns:
  - BilledCost
  - EffectiveCost
  - ServiceName
  - SkuId
  - UsageQuantity
  - UsageUnit
  - ResourceId
  - ChargeCategory
  - BillingPeriodStart
  - BillingPeriodEnd
meters:
  - name: ReturnShipmentsProcessed
    unit: shipments
    description: Number of return shipments created and labeled through Loop
    chargeCategory: Usage
  - name: ExchangesCompleted
    unit: exchanges
    description: Number of exchange transactions completed (Shop Now, Instant Exchange)
    chargeCategory: Usage
  - name: PlatformSubscription
    unit: months
    description: Monthly platform subscription fee by plan tier
    chargeCategory: Recurring
  - name: FraudPrevention
    unit: events
    description: Fraud detection assessments applied to return requests
    chargeCategory: Usage
principles:
  - name: Visibility
    description: >-
      Track per-shipment label costs alongside fixed subscription fees to
      produce a full cost-per-return metric. Use Loop's reporting API endpoints
      (Return Data) to pull return volume and reconcile against carrier invoices.
    actions:
      - Monitor monthly shipment volume via the Return Data API reports endpoint
      - Tag return shipments by product category and reason code for cost attribution
      - Export return data to FinOps tooling for blended cost-per-return dashboards
  - name: Optimization
    description: >-
      Reduce total return cost by increasing exchange rate (exchanges vs.
      refunds) and leveraging carrier rate shopping. Higher exchange rates lower
      net refund liability and improve margin recovery.
    actions:
      - Enable Bonus Credit and Shop Now incentives to nudge customers toward exchanges
      - Use carrier rate shopping to minimize per-shipment label cost
      - Apply fraud prevention policies to reduce fraudulent return volume
      - Upgrade to Advanced plan if exchange revenue offsets the higher subscription cost
  - name: Accountability
    description: >-
      Align return cost ownership to merchandising and operations teams by
      mapping return reasons to product SKUs and policies.
    actions:
      - Use item grading and disposition data from the API to attribute reverse logistics costs
      - Review Loop Intelligence fraud signals to reduce policy abuse costs