Two Boxes, a seed stage startup, is emerging as a much-needed innovator in the returns process for brands and third-party logistics providers (3PLs). With $4.5 million in funding and an experienced team of industry experts, Two Boxes is set to redefine the efficiency of e-commerce returns.
The Returns Challenge and Two Boxes' Solution
E-commerce returns have long been a pain point for 3PLs and warehouses, often resulting in logistical nightmares and economic losses. Kyle Bertin, Co-Founder of Two Boxes, identified this challenge, noting the staggering 20% to 40% return rate for online purchases in the U.S., and set out to transform it into a streamlined, efficient operation.
Two Boxes' software centralizes the returns process, integrating with existing front-end systems, automating SOPs, and providing guided instructions for warehouse staff. This not only simplifies training but also ensures more accurate inventory reconciliation. By focusing on automating and data tracking, Two Boxes offers actionable insights for warehouse operators and merchants, potentially turning returns from a logistical headache into an asset.
Human-Centric Approach and Operational Efficiency
At the heart of Two Boxes' ethos is a human-centric approach, where the day-to-day experience of warehouse workers is significantly enhanced. This improvement ripples through the entire supply chain, from brand value to end-consumer satisfaction. Two Boxes' technology enables triaging returns upon receipt, allowing 3PLs to focus labor on the most impactful returns for their merchants.
Case Study: Rocket Shippers
The effectiveness of Two Boxes' technology is exemplified in a case study with Rocket Shippers. This rapidly growing 3PL saw a 45% reduction in return processing costs and a significant increase in processing efficiency after implementing Two Boxes' solutions. The case study demonstrates how Two Boxes' technology not only boosted operational efficiency but also enhanced the quality of life for warehouse team members, a testament to the company's mission of transforming returns from a liability into an asset.
Funding and Industry Support
The launch of Two Boxes, supported by a robust $4.5 million seed funding round, highlights the industry's confidence in its potential. The backing by Vinyl Capital, along with advisors from Amazon, Shopify, Whiplash, Loop Returns, and Rent the Runway, underscores the significance of Two Boxes' role in the logistics sector.
With the logistics industry grappling with the challenges of e-commerce returns, Two Boxes' innovative approach offers a beacon of hope. The company is well-positioned to make a significant impact on the way brands and 3PLs handle returns, turning a challenging aspect of e-commerce into a competitive advantage. As the industry continues to evolve, Two Boxes stands ready to lead the charge in revolutionizing e-commerce returns for a more efficient and sustainable future.