Two Boxes: A Logistics Solution for E-Commerce Returns

Two Boxes, a Denver-based logistics startup, has secured $5.3 million in funding led by Peterson Ventures. This funding, which more than doubles the company's valuation, will enable Two Boxes to expand its engineering and go-to-market teams, as well as extend its reach beyond North America.

• The funding round was oversubscribed, with Assembly Ventures joining as a new investor alongside continued support from Vinyl, Range Ventures, and Matchstick Ventures.
• Two Boxes aims to solve the challenges of e-commerce returns, a growing concern in the retail industry.

The Rise of E-Commerce Returns and Sustainability Concerns

The average e-commerce return rate is estimated to be 16%, with $816 billion worth of retail merchandise returned in 2022 alone. This leads to significant waste, as much of the returned merchandise ends up in landfills.

• Two Boxes addresses the sustainability concerns by offering a solution that helps brands and 3PLs (third-party logistics providers) handle returns more effectively and capture key data throughout the process.
• The company's platform streamlines inspection, prioritization, processing, and tracking of returned items, enabling businesses to reduce waste and improve efficiency.

Two Boxes' Approach to Logistics and Returns Management

While many solutions focus on moving returned items back to the warehouse, Two Boxes stands out by addressing the complexities of returns processing once they arrive. The company's platform helps businesses:

• Streamline inspection and prioritization of returned items.
• Process returns more efficiently.
• Track returns and gather valuable data.
• Tackle return fraud, a growing concern in the industry.

Two Boxes: Driving Efficiency and Sustainability in Logistics

Two Boxes has partnered with Loop and Happy Returns, a UPS Company, and supports over 20 3PLs across North America, including major players like Capacity, Flowspace, and GoBolt.

• The company's platform has a 100% pilot conversion rate, with every 3PL testing the software expanding its usage within 90 days.
• Clients have reported significant benefits, including an 80% reduction in employee training time, a 50%+ boost in efficiency, a 15%+ increase in returns revenue, and complete visibility into vital metrics.

Two Boxes' Impact: Transforming the Logistics Landscape

Since launching, Two Boxes has processed over $100 million in returns for more than 120 merchants, including brands like Caraway, Made In, Tecovas, The Perfect Jean, and Thursday Boot Company.

• Two Boxes is making a significant impact on the e-commerce industry, helping businesses address the challenges of returns and improve sustainability efforts.
• The company's innovative approach to logistics and returns management is transforming how businesses handle returns, reducing waste and increasing efficiency.

Key Takeaways

Two Boxes is a promising solution for e-commerce businesses looking to optimize their returns management and drive efficiency. By tackling the complexities of returns processing and providing valuable data insights, Two Boxes is helping businesses reduce waste, improve profitability, and create a more sustainable future for retail.

• The company's recent funding is a testament to its potential and the growing need for solutions that address the challenges of e-commerce returns.
• As e-commerce continues to grow, Two Boxes is well-positioned to become a key player in the logistics industry, driving innovation and sustainability in the process.