Processing returns is a big task for retailers. The industry’s total revenues will reach $743 billion in merchandise in 2023. According to the National Retail Federation and Appriss Retail.
Retailers have tried to make it easier for customers to return items. For example, Amazon has partnered with Kohl’s And Target has started accepting returns of your car. Startups have also come up with new technologies to manage the delivery and returns experience.
Returnmates, now rebranded as wobble, is the latest to attract new venture capital for its customer-focused approach to delivery and returns. The Los Angeles-based company raised $19.5 million in a Series A led by 7GC. Additional participants include Blackhorn Ventures, Lightshed Ventures, and Rise of the Rest Revolution. To date, the company has raised $25.6 million.
The company rebranded to Sway as a way to showcase its evolution beyond revenue into last-mile delivery capabilities, company co-founder and CEO Eric Wimmer told TechCrunch via email.
“We’ve built solutions to reduce costs for retailers, lower environmental impact and remove friction for shoppers,” Weimer said. “For shoppers, Sway’s doorstep returns program meets the customer wherever they are. No more printing labels, repackaging or waiting in line at the post office – you can process your return from the comfort of your home.
Wimer, one of Uber’s first employees, teamed up with co-founder Christian Zak to take on the experience of delivering and returning packages after an ill-fated trip to the post office in 2020. Sway’s approach relies on a two-way communication platform and a network of driver-partners to monitor purchases from pickup at the door to No returns.
Shoppers use the SMS platform and tracking page for a 30-minute delivery/pickup window. They can add arrival instructions and add packages to their truck.
The company offers retailers next-day and two-day delivery services as well as a returns and exchange product that reduces the return cycle from a week to less than three days on average.
![Sway founders Christian Zack and Eric Wimmer](https://techcrunch.com/wp-content/uploads/2024/01/Founders-Kristian-Zak-left-and-Eric-Wimer-Right.png?w=680)
Sway founders Christian Zack and Eric Wimmer. Image credits: wobble
Since inception, brands using Sway have seen a 66% reduction in lost package rates and a 20% increase in repeat purchases compared to legacy carriers, according to the company.
“A return that goes through the Sway network is cheaper than one that is shipped back individually to the retailer,” Wimmer said. “We verify the item in our warehouse before it is shipped back, thus preventing fraud and allowing us to receive immediate refunds. We also consolidate multiple returns into one box, which reduces shipping costs per unit and eliminates the need for individual repackaging.”
Since August 2021, Sway has expanded to 20 cities and grown its team from five to 100. During the same period, its revenue has increased 14x and its customer base has increased 7x.
Sway is currently active in California, Texas, Washington, DC, Maryland, Virginia, New York, and Florida. Weimer said the new funding will enable the company to further develop technology, grow its team and expand coverage from 20 to 25 cities.
“Given our revenue and customer growth over the past two years, capital has been critical to expanding our infrastructure, technology and footprint to better support our brands, shoppers and driver partners,” Weimer said.