Request Early Access to LiquiDonate on Loop
Managing product returns is a complex and often costly process for retailers. From the logistical nightmare of dealing with unsellable inventory to the environmental and economic impact of waste, many companies find themselves caught in a cycle of financial inefficiency.
For those already using Loop’s return management system, the challenges of handling returns are compounded when unsellable items accumulate, or worse, are discarded. Fortunately, there’s now a solution that can turn waste into a positive social and environmental impact: LiquiDonate.
LiquiDonate, now integrated with Loop, offers a seamless way for retailers to donate unsellable returned items to local nonprofits, reducing waste and enhancing sustainability. In this blog, we’ll explore how this new disposition option works and how it addresses the common pain points of returns management.
Why Returns Management Still Hurts — Even with Loop
For retailers managing returns in Loop, the pain points are all too familiar. While Loop does a great job streamlining the returns process, many businesses still face significant challenges when it comes to unsellable items. In many cases, these items either require manual handling or, unfortunately, end up being discarded or liquidated.
For businesses already struggling with rising shipping costs, the process of returning products to centralized warehouses or disposal centers only adds to the financial burden. According to a report by the National Retail Federation and Appriss Retail, retailers expected more than $761 billion in merchandise returns in 2021, accounting for 16.6% of total U.S. retail sales. The high costs of shipping, storing, or destroying these goods mean that many retailers are losing out on potential revenue and facing mounting waste issues.
The Returns Waste Solution: Loop + LiquiDonate
LiquiDonate offers a game-changing alternative to the traditional methods of handling unsellable returns and unproductive inventory. By integrating directly with the Loop platform, LiquiDonate enables retailers to donate unsellable products to nearby nonprofit organizations — reducing waste, saving money, and creating real community impact.
Request Early Access to LiquiDonate on Loop
Here’s how donating improves the returns process:
- Automatic matching: LiquiDonate connects unsellable items to nearby 501(c)(3) organizations — like schools, churches, and community groups — with zero manual sorting required.
- Financial benefits: When unsellable inventory is donated, it is routed to verified 501c3 organizations, including schools, community groups, and churches, all of which are eligible for charitable tax benefits. Retailers can claim these deductions instead of paying for return shipping and disposal costs.
- Shorter shipping distances: Traditional return logistics can often require shipping products thousands of miles, increasing costs and carbon emissions. Returns are routed locally, reducing transportation distance by 83% on average.*
- Lower shipping costs: Retailers save an average of 26% on shipping label costs when donating to nearby nonprofits instead of distant warehouses.*
- Environmental impact: Less transportation means a smaller carbon footprint — a win for sustainability goals and ESG reporting.
*Stats from the Environmental Protection Agency’s recent report on reverse logistics emissions and cost-saving strategies.
The Financial and Environmental ROI of Donating Returns
Retailers using LiquiDonate to manage unsellable returns benefits in more ways than one. Beyond reducing waste, donating returns offers both financial advantages and measurable sustainability gains.
Financial Relief through Tax Deductions
Each donation is documented with a receipt, which can be used for tax filings. These receipts verify the donation and provide proof of the charitable contribution. This makes it possible for businesses to recoup some of the costs associated with reverse logistics. According to the IRS, donations to 501c3 organizations can be deducted as business expenses, providing retailers with a financial incentive to opt for donation over liquidation or disposal.
Progress Toward Sustainability Goals
The LiquiDonate x Loop integration supports a company’s sustainability goals. By redirecting unsellable products to nonprofit organizations, retailers can contribute to a circular economy and ESG initiatives, while reducing their overall carbon footprint.
The environmental benefits of reducing waste are becoming more critical, with a study by the EPA highlighting that 11.3 million tons of textiles were landfilled in the United States in 2018 alone.
Brand and Consumer Trust
According to a 2020 survey by Capgemini, 69% of businesses report seeing increased sales as a result of their climate initiatives, and 77% of company leaders observed increased consumer loyalty due to sustainability efforts. According to a report by America’s Charities, 90% of businesses reported that partnering with reputable nonprofits enhanced their brand, illustrating the value of corporate philanthropy in today’s market.
Today’s shoppers want to support brands that align with their values — and reducing landfill waste through donation is one of the clearest signals a brand can send.
Retailers that prioritize donations over destruction can see measurable ROI in the form of cost savings, tax advantages, and increased brand goodwill — all while doing good for the planet.
Turnkey Integration: It’s Easy to Add Donation to Your Loop Returns Workflow
The integration of LiquiDonate into Loop’s platform is designed to be seamless and user-friendly. Retailers don’t need to change their existing return workflows; once the integration is activated, it automatically adds donation as a disposition option for returns. This allows businesses and their customers to continue their usual returns process while simultaneously turning waste into a resource for local communities.
Request Early Access to LiquiDonate on Loop
Once a return is initiated, the Loop system identifies whether the item is eligible for donation based on preset SKUs chosen by the retailer. If donation is an option, the return is routed to a local nonprofit, cutting down on shipping distances and making the process more efficient. The customer receives a shipping label with an anonymized addressee, ensuring privacy and simplicity for all parties involved.
- Effortless setup: After activation, donation is automatically added as a returns option in Loop.
- SKU-based logic: Retailers select eligible SKUs for donation — these are flagged within the Loop system.
- Local routing: When an item qualifies, it’s matched to a nearby nonprofit partner, reducing shipping distances and carbon impact.
- Customer-friendly: The end customer receives a prepaid shipping label with anonymized recipient info, ensuring privacy and ease of use.
- No disruption: Retailers don’t need to adjust operations — the process happens behind the scenes, making returns disposition smarter without adding complexity.
Start Using Loop x LiquiDonate Today
Retailers looking to reduce costs, increase sustainability, and make a positive social impact should take advantage of the new LiquiDonate integration with Loop.
For a limited time, the integration fee is waived for current Loop customers, meaning no setup fees and no additional installation costs. This simple yet powerful solution can transform your returns process, making it more efficient, sustainable, and socially responsible.
To learn more or get started with LiquiDonate, reach out to us at support@liquidonate.com. Make a meaningful difference with your returns today.
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