What exactly happens to those jeans you ordered online that don’t fit?
After dropping off your return package at FedEx, you probably won’t think about it again until the refund reaches your bank account. SaaS enterprise ReturnLogic think of everything in between – and it raised a Series A of $8.5 million to keep growing this year.
The 2014-founded company — which names Philadelphia as its home but lists a Camp Hill address — is the creator of a platform that organizes workflows and returns operations for e-commerce retailers. Series A will aim to double its headcount, continue product development, and expand its API capabilities with new e-commerce platforms “beyond Shopify.” The round was led by Ann Arbor, Michigan’s Mercury with the participation of Revolution’s Rise of the Rest FundYork, Pennsylvania White Rose Ventures and Ben Franklin Technology Partners.
While e-commerce was on the rise before the COVID-19 pandemic, the spread of the virus drove more and more people to shop online. In 2020, the pandemic added $102.08 billion in online sales and $116.45 billion in 2021.
“Despite the explosive growth of the e-commerce sector, retailers and brands have continued to struggle with the substantial financial impacts of returns,” said Pierre Sobotta, founder and CEO of ReturnLogic, in a statement. “Our vision is to be the operating system for returns. Our comprehensive platform provides detailed data and rigid focus to help retailers navigate the complexities and inefficiencies of their returns technology stack, including reverse logistics workflows.
Retailers have largely reduced the sales side of e-commerce, said Blair Garrou, CEO of Mercury. But they tend to struggle with the resource draining aspect of returns, which ultimately weighs on a brand’s bottom line. ReturnLogic currently works with a range of small and large e-commerce brands and handles third-party warranty returns for large retailers, including walmart, Amazon and best buy.
“ReturnLogic is something entirely new to this market and draws solely on Peter Sobotta’s deep operational experience in reverse logistics and supply chain management,” Garrou said in a statement.
A ReturnLogic spokesperson did not immediately return a request for comment on the number of people the company employed in August.