FlavorCloud and Loop partnered to launch a cross-border returns integration solution to help companies protect margins amid U.S. De Minimis suspension.
“Suspending the de minimis threshold is one of the most impactful policy shifts in cross-border trade in decades,” says Rathna Sharad, CEO and co-founder of FlavorCloud. “Merchants now face a direct hit to profitability on every return back to the U.S. Our integration with Loop puts duty avoidance and drawback directly into the returns workflow, turning this regulatory burden into a competitive advantage.”
“We’re excited to partner with FlavorCloud to give our merchants a powerful new path to protect their margins,” adds Kristen Kelly, SVP of product at Loop. “By embedding FlavorCloud’s compliance and duty recovery expertise into Loop, brands can adapt quickly to these changes while keeping returns easy and transparent for their customers.”
Key takeaways:
· The native integration embeds duty avoidance directly into the returns workflow. Merchants using Loop and FlavorCloud can prevent double duty payments by structuring eligible returns as Delivered Duty Paid (DDP) and recover duties and taxes already paid on outbound shipments when goods are returned. The process is fully automated within the Loop platform, requiring no additional operational complexity.
· The combined solution also brings a multi-carrier network with optimized return rates and a fully trackable, compliant returns process to international shoppers. Loop’s user-friendly interface enables consumers to initiate returns and receive automated labels and customs documentation, while FlavorCloud’s technology manages customs clearance, compliance, and carrier routing across more than 220 markets.
- The solution also provides real-time updates in Loop, reducing refund delays and support inquiries by up to 40%, and works across express carriers globally and standard carriers in key countries, independent of outbound carrier choice.
