Returns

Factor Return Rates, Restocking Costs & Exchange Impact into Margin Intelligence

Agentis integrates with Loop Returns to incorporate return probability, restocking costs, and exchange-vs-refund behavior into per-order margin calculations.

How It Works

Agentis reads return data from Loop (return rates by SKU, restocking costs, exchange rates, and refund processing fees). For each product in the order, Agentis applies a risk-adjusted return cost based on historical return rates for that SKU and category. A dress with a 30% return rate has a very different expected margin than a consumable with a 2% return rate. Agentis factors this into each order's net margin calculation so your profit floor reflects the true expected profitability.

Data Flows

  • →Return rate per SKU and category from Loop → Agentis risk-adjusted margin model
  • →Restocking and inspection costs per return from Loop → Agentis cost layer
  • →Exchange vs refund ratio from Loop → Agentis net revenue retention model
  • →Return reason data from Loop → Agentis product-level margin intelligence

Benefits

  • Price in the true cost of returns: a 30% return rate SKU is not as profitable as it looks
  • Differentiate between exchanges (revenue-neutral) and refunds (margin-negative) in calculations
  • Identify SKUs where return costs make certain promotions unprofitable
  • Adjust profit floors dynamically based on return risk by product category

Setup

  1. 1Connect your Loop Returns account to Agentis via API key
  2. 2Agentis imports historical return data, return rates by SKU, and cost metrics
  3. 3Configure return cost allocation: flat per-order estimate or SKU-level risk adjustment

Technical Details

Agentis integrates via Loop's REST API using API key authentication. We pull return data from the /returns endpoint with filters for date range, SKU, and return type (exchange vs refund). Return rate calculations use a rolling 90-day window per SKU, updated daily. Restocking costs are configured per category in Agentis and cross-referenced with Loop's return reason codes. Webhooks on return.created and return.completed keep post-order margin reconciliation current.

Frequently Asked Questions

How does Agentis estimate return cost for new products with no history?

For new SKUs, Agentis uses the category-level average return rate as a default. As return data accumulates, Agentis transitions to the SKU-specific rate. You can also manually set expected return rates for new product launches.

Does Agentis treat exchanges differently from refunds?

Yes. Exchanges retain revenue (and often upsell), so Agentis weights them differently. A SKU with a 25% return rate but 60% exchange rate has a much better expected margin than one with 25% returns and 90% refunds.

Can return cost data change whether an order is flagged or held?

Yes. If a high-return-rate SKU is in the order with a discount applied, the risk-adjusted margin may fall below your floor, triggering a flag or a hold before fulfillment even though the pre-return margin looked acceptable.

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Key Concepts

Margin Analysis

Margin Leakage

The gradual, often undetected loss of profit across many orders, driven by small per-order cost overruns that compound into significant revenue erosion over time. Also called revenue leakage, a term more common in marketplace-seller (Amazon/Walmart) contexts for the same underlying pattern.

Margin Analysis

Order Profitability

The true net profit of a single order after deducting all variable costs: COGS, shipping, discounts, payment fees, fulfillment labor, and return allowances.

Margin Analysis

SKU-Level Profitability

The analysis of profit margins at the individual product or variant level, revealing which specific items generate profit and which consistently erode it.

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