Controlling reverse logistics costs and increasing return volumes have become important parts of businesses’ strategies. While there is a growing number of solutions from third-party logistics providers (3PLs) and technology companies, estimates suggest there may also be over 500 reverse logistics startups.
Reverse logistics has often been regarded as a necessary evil, resulting in many companies simply accepting the costs and volumes. But with the introduction of such technology solutions as artificial intelligence (AI), cloud computing, and visibility and the need for resilient supply chains, businesses are now looking to establish processes, create benchmarking solutions, and streamline costs within their reverse logistics departments.
In 2023, the Reverse Logistics Association (RLA) hosted its first reverse logistics startup contest at its annual conference. The contest highlighted the cutting-edge solutions that were emerging and rewarded the best startups. The winners of the first contest were NewMine, which helps retailers understand the reasons behind returns via AI, and Pollen, an app that helps businesses optimize transportation costs for returns.
This year, we had a record-breaking number of entrants, with some traveling from overseas to participate.
Thank you, especially to the judges: Julie Ryan, HP; Isaiah McPeak, Vendidit; Nikos Papaioannou, Amazon; Sean Magann, Sims Lifecycle Services; and Rudee Bertie, NeX.
This year’s winners were Returned.com, the Judges winner, and 360 ID Tag, the audience winner.
Returned.com
Founded by husband-and-wife team Paul and Eliza Lim, Returned.com recently emerged from stealth mode and officially launched. The company is based on a patent-pending AI platform that handles all return logistics, which allows consumers to navigate return policies, scan receipts, track status, and receive refunds faster across all retailers in a single location.
The app also includes a donation engine. If the cost of the returned item outweighs the cost of receiving and handling it, a retailer may reimburse the consumer and tell the consumer to donate the item. Returned.com can handle the donation return, from pickup to delivery, via its app.
Additional solutions, such as a “new or like new” marketplace, are in development.
RLA Startup Pitch Competition Judge Isaiah McPeak said of Returned.com, “It’s one of the first meaningful, consumer-benefitting applications of AI that I’ve seen in this industry.”
Indeed, Returned.com’s website cites market statistics that support the need for such an app. Most consumers, 75%, have not made a return due to the cost and complexity of the returns process. Almost half of retailers, 44%, now charge shipping fees for returns.
360 ID Tag
The idea behind 360 ID Tag evolved from founder Chelsea Duhs, who had started an eBay business selling various items, including designer dresses, sunglasses, shoes, and handbags. According to Duhs, “What if the person who bought a designer dress wore it to their special event, tags tucked in out of sight, and returned it? Would I have any case to argue because I would have no proof? In this scenario, the cost was high as the dress would have lost most of its value if it returned with signs of wear.”
According to the National Retail Federation (NRF), return fraud contributed $101 billion in overall losses for retailers in 2023. Moreover, for every $100 in returned merchandise, retailers will lose $13.70 to return fraud.
So, Duhs developed the 360 ID Tag, an anti-wear and return security tag accessible for e-commerce merchants and marketplace sellers designed to deter and prevent return policy abuse. The tag works by looping a durable security tag through merchandise and sealing both ends with a serialized tamper-proof security seal.
RLA’s Reverse Logistics Startup Competition – 2025
We are now accepting applications for the 3rd Annual Reverse Logistics Startup Competition, which will be held in March 2025 at RLA’s annual conference in Las Vegas.
If you are interested in participating, please email RLA Research Manager Cathy Roberson at Cathy@RLA.org and provide the following details:
1. A description of your startup
2. Startup’s website
3. Date the startup was established – Must be 5 years old or less.
4. Contact details
Benefits of participation:
1. Present to a panel of judges, plus the 1000+ attendees
2. Networking time to meet potential partners and customers during the event
3. Reduced registration fee
4. Complimentary table space on exhibit floor.