- Two Boxes announced this week that it has launched with $4.5 million in seed funding.
Two Boxes – a way for brands and 3PLs to process returns and capture critical data from the return process – announced that it is launching this week with $4.5 million in seed funding. Vinyl Capital led the funding round with participation from Matchstick Ventures and Range Ventures. And Two Boxes has assembled an advisory board of industry veterans who have decades of experience in the e-commerce industry at companies like Amazon, Shopify, Whiplash, Loop Returns and Rent the Runway.
E-commerce returns have been soaring. And the NRF estimates that $816 billion worth of retail merchandise purchased last year was returned and for every $1 billion in sales, the average retailer incurs $165 million in merchandise returns, most of which ends up in landfills. Founded last year by Kyle Bertin and Evan Stalter, Two Boxes was developed with the goal of creating a more intelligent and efficient way for 3PLs and e-commerce merchants to process returns.
For Brands, Two Boxes
— Integrates with their stack, like Shopify, Happy Returns, Loop, and Returnly, to enable faster, higher quality, and more sustainable return processing
— Captures critical return processing data to better understand and connect with your customers, suppliers, and partners
— Automates reporting across the internal and external teams
For 3PLs, Two Boxes –
— Streamlines the returns operations with easy-to-use software and data-driven operations
— Improves the return offerings and ensures standardization across any merchants’ unique returns logic
— Processes the returns quickly and consistently, eliminates subjective and inconsistent disposition decisions, tracks return financials, and offers real-time visibility across a warehouse’s return operations
With this new funding round, Two Boxes will grow its engineering team and expand its product offering and presence into new markets across North America. And the company will further develop its data analytics capabilities so that brands and logistics providers can enhance their returns offerings, improve profitability, and reduce the environmental impact of returns.
KEY QUOTES:
“Our mission is to make returns an asset instead of a liability. Our technology solves crucial supply chain problems and quickly gets returned inventory back to stock. With our data-driven insights, brands can eliminate waste and increase operational efficiency across the reverse supply chain. Our software allows brands and their 3PLs to optimize their profit margins – ultimately turning returns into something they can benefit from, rather than a dreaded burden. The support from the team at Vinyl will help us scale our business significantly, given their deep experience as investors and operators in the e-commerce ecosystem.”
— Kyle Bertin, co-founder and CEO of Two Boxes
“Returns don’t scale — but the Two Boxes team has the right expertise to address this enormous opportunity for high-growth brands and 3PLs. The company’s technology solves issues of sustainability and velocity and will ultimately enable the first logistics network on the market for e-commerce returns.”
— TJ Mahony, founder and partner of Vinyl Capital
“Two Boxes is a game changer for a growing brand like ours. Before Two Boxes, understanding where our returns inventory is, getting it back to stock quickly, and capturing data about returns from the warehouse was nearly impossible. We’re now getting our inventory back to stock faster, serving our customers better, collaborating more effectively with our 3PL, and improving our bottom line.”
— Vitality COO, Steve Dilk
“The value of Two Boxes increases as we add brands to it. It’s 1+1 = 3. Our staff can process returns for all brands in one system, with no additional manual data entry and all parties have the single source of truth for every item processed.”
— Rock Returns CEO, Sonny Byrd
