Two Boxes launches with $4.5 in seed funding to solve the e-commerce returns problem in a sustainable way

Although the average e-commerce return rate varies depending on the industry, product type, and other factors. However, according to a study by the National Retail Federation (NRF), the average e-commerce return rate is 16%.

Over the years, e-commerce returns have been soaring over the years with the NRF estimating that $816 billion worth of retail merchandise purchased in 2022 was returned and for every $1 billion in sales, the average retailer incurs $165 million in merchandise returns – most of which ends up in a landfill. It’s against this backdrop that the founders of Two Boxes set on a mission to help brands and 3PLs process returns and capture critical data from the return process.

Today, Two Boxes announced its official launch with $4.5 million in seed funding led by Boston-based Vinyl Capital, with participation from Matchstick Ventures & Range Ventures. The startup will use the fresh capital infusion to grow its engineering team and expand its product offering and presence into new markets across North America.

Two Boxes will also use the funding proceeds to 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.

Founded in 2022 by Kyle Bertin and Evan Stalter, Two Boxes was developed with a mission to create a more intelligent and efficient way for 3PLs and e-commerce merchants to process returns. The startup has also assembled an advisory board of industry veterans who bring decades of experience in the e-commerce industry at companies like Amazon, Shopify, Whiplash, Loop Returns and Rent the Runway.

“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,” said Kyle Bertin, co-founder and CEO of Two Boxes. “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.”

“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,” said 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,” said Vitality COO, Steve Dilk.

Commenting on the funding, Rock Returns CEO Sonny Byrd:  “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.”