Returnly, a company that helps retailers manage post-purchase payments, aannounced that it had raised $ 8 million in Series A financing and secured a credit facility capable of funding more than $ 300 million in buyer buybacks, according to a press release from the company.
Mundi Ventures and The Venture City led the round, with additional contributions from Novel TMT Ventures and CoVenture, the latter of which provided Returnly with the new line of credit.
Returnly’s current retail and brand partners include Fanatics, UNTUCKit, Outdoor Voices and The Greats. The company has issued more than $ 100 million in return credit to customers, according to the press release.
Returnly works with returning customers to help them buy again using return credit. Customers receive credits even before they return their unwanted items, turning a potentially negative and costly process for the retailer into an instant new opportunity to make a sale and strengthen the retailer’s loyalty bond with the customer.
It is tackling the $ 150 billion ecommerce return market, an issue the industry appears to have little response to in recent years as ecommerce sales have continued to grow. The retail sector also just ended its generally busiest season in terms of returns, with around 20% of all annual returns taking place during the holiday season. Between 25% and 30% of online purchases are returned each year, according to an estimate by the U.S. Postal Service.
Plus, retailers are investing in technology to reduce product returns before they happen. Virtual reality, augmented reality apps, and fit experiences all aim to help customers feel more confident about shopping before finishing them.
Returnly offers a range of tools to help retailers with returns, but the most attractive capability might be its support for instant refunds in the form of credits. If returns are a reality for retailers, making it a seamless experience can be a quick way to build loyalty and retain returns.