Two Boxes, a way for brands and 3PLs to streamline returns and capture critical data from the process, announced it had raised $5.3 million. New investor Assembly Ventures and existing backers Vinyl, Range Ventures, and Matchstick Ventures also joined this round. The oversubscribed funding round, led by Peterson Ventures, more than doubled the company’s valuation.
Several solutions address returning an item from a customer’s house to the warehouse. However, Two Boxes focuses on what happens when the return arrives at the warehouse—a complex, manual, and inefficient process. Through Two Boxes, brands and 3PLs optimize returns inspection, prioritization, processing, tracking, and a growing list of obstacles.
The recent Two Boxes product innovations empower brands and 3PLs to effectively combat return fraud, a costly issue growing in scale and sophistication. And by facilitating better returns management and speeding up the timeline in which inventory goes back to stock, Two Boxes makes brands and 3PLs more profitable, supports sustainability efforts, and reduces waste that might otherwise end up in landfills.
Two Boxes recently made news partnering with Loop and Happy Returns (a UPS Company) and currently serves 20+ third-party logistics providers (3PLs) in North America, including industry leaders like Capacity, Flowspace, and GoBolt. Upon trying it, the company clients immediately recognize Two Boxes’ value – the solution boasts a 100% pilot conversion rate and 100% of 3PLs who have tested the software expanded their usage within 90 days. The clients report significant benefits, including an 80% reduction in employee training time, a 50%+ increase in efficiency, a 15%+ boost in returns revenue, and complete visibility into critical metrics for both 3PLs and brands.
Since launching their product last year, Two Boxes software has been used to process over $100 million in returns for over 120 merchants, including popular brands like Caraway, Made In, Tecovas, The Perfect Jean, and Thursday Boot Company.
With this funding, the company plans to grow its engineering and go-to-market teams and expand its geographic footprint beyond North America.
Two Boxes recently launched several new features, such as a comprehensive Partner Portal designed to enable seamless onboarding and ongoing customer optimization. And this will allow rapid deployment, easy optimization of return processes, and simplified collaboration across 3PLs and brands. Plus, they enabled full localization of software for multi-language support to empower warehouse staff regardless of their primary language. Two Boxes also just integrated with Redo and will soon announce other integrations, further enabling their ability to support both fast-growing e-commerce brands and enterprise merchants. They have established their first recommerce partnership with Arrive, enabling brands and 3PLs to make recommerce a critical part of their returns strategy. Two Boxes is also rolling out a new set of products to empower brands and 3PLs to fight fraud and abuse via intelligent return operations and actionable data.
KEY QUOTES:
“Across our portfolio of e-commerce companies, we see firsthand how damaging high return rates can be to a business. Two Boxes optimizes what has always been a labor-intensive process while providing data insights that unlock further efficiencies. We are excited to support Two Boxes as they continue to innovate, expand, and become invaluable to the logistics and e-commerce sectors.”
-Taylor Jones, partner at Peterson Ventures
“Our mission is to make returns an asset instead of a liability and we’ve never been more excited about our ability to execute against that mission. We are committed to advancing our latest innovations in eliminating fraudulent returns, enabling recommerce, and scaling with rapidly growing brands. We remain dedicated to driving efficiency and sustainability, increasing profits, improving customer experiences, and supporting the growth of our clients—and this new capital will help us to accelerate these efforts at scale.”
-Kyle Bertin, co-founder and CEO Two Boxes
