COMPANY OVERVIEW

Happy Returns is a company that provides centralized in-person return services for online retailers. The California-based startup sets up return kiosks in high-traffic areas such as shopping malls to accept returned items in person for online retailers and give the customers making the returns an immediate refund.

Source:Happy Returns

In April 2016, Happy Returns opened its first Return Bar at the Santa Monica Place mall in Santa Monica, California. In a 10-by-12-foot kiosk, the company’s “returnistas” accept items and process refunds for customers on the spot. The items are then shipped in bulk back to the e-tailers that sold them. The company is now accepting returns for its first client, Tradesy, an online consignment site, and it is in talks with several other e-tailers.

BUSINESS CONTEXT

Reverse logistics are a pain point for retailers. Returns are expected to total $260.5 billion in 2016 in the US alone, according to the National Retail Federation. Online pure plays see return rates of approximately 30% of total purchases in categories such as apparel and accessories, whereas physical stores see return rates of about 15%. And returns are costly for retailers. On average, one dollar of goods returned translates to only about 20 cents of value when factoring in credit-card fees, labor costs to prepare the goods for resale and shipping costs, according to industry experts.

BUSINESS MODEL

Happy Returns has created a mutually beneficial model that:

• Provides in-store return solutions for e-tailers that do not have physical stores.
• Reduces return costs by charging retailers fees and centralizing the shipping process.
• Improves retailers’ customer relationships through a better return experience. Customers do not have to print shipping labels, go to a post office or shipper, or wait for their refunds.
• Increases traffic to malls and shopping centers, some of which may convert to additional sales.

Source:Happy Returns

COMPANY PROFILE

DESCRIPTION

Happy Returns is a privately held company that provides centralized in-person return services for online retailers at its Return Bars.

INDUSTRY

E-commerce, reverse logistics

FOUNDED

2016

HEADQUARTERS

Venice, California

MANAGEMENT TEAM

David Sobie, Co-Founder and CEO David Sobie has held several senior marketing roles at e-commerce companies such as JustFab, REVOLVE and HauteLook. Mark Geller, Co-Founder and COO Mark Geller was the Head of Mobile at HauteLook, where he ran HauteLook’s Return to Rack program before co-founding Happy Returns. The two co-founders crossed paths while at HauteLook.

CLIENTS

Tradesy

FUNDING

Seed round: $1.9 million

INVESTORS

Andy Solomon (Sole Society), Brian Spaly (Trunk Club), Dennis Phelps (Institutional Venture Partners), Greg Fant (formerly of Thumbtack), Jason Lehmbeck (DataPop), Kara Weber (Brilliant Ventures), Rob Chesney (Trunk Club) and Rob Stevens (Matrix Partners)

WEBSITE

www.happyreturns.com