INSUBCONTINENT EXCLUSIVE:
Loop Returns, the startup that helps brands handle returns from online purchases, has today announced the close of a $10 million Series A
funding round led by FirstMark Capital
Lerer Hippeau and Ridge Ventures also participated in the round.Loop started when Jonathan Poma, a co-founder and COO and president, was
working at an agency and consulting with a big Shopify brand on how to improve their system for returns and exchanges
this brand over a straight-up refund.The goal, according to Poma and Morgan, is to turn the point of return into a moment where brands can
create a life-loyal customer when handled quickly and properly.The more we shop online, the more brands extend themselves financially, and
returns are a big part of that
Returns account for 20 to 30% of e-commerce sales, which can become a terrible financial burden on a growing direct-to-consumer brand
the fold by giving them post-purchase options that are more sticky and more lucrative for the brand than a refund.The company thinks of it
as Connection Infrastructure
Most brands already have a customer acquisition architecture, and Shopify and Amazon are ahead when it comes to the infrastructure around
After all, return volume is one of a handful of variables that help Loop Returns determine what it will charge its brand clients.But the
team is thinking about other layers of the connection infrastructure, with plans to launch a product in 2020 that also focuses on the
connection point after purchase
Poma and Morgan believe, with an almost religious reverence, that the brands themselves will help lead shoppers and infrastructure providers
did say they will use the funding to expand operations and further build out its current and future products.Of course, Loop is playing in a
Not only are there other players thinking about post-purchase connection, but Shopify has itself built out tools to help with exchanges and
returns, and even acquired Return Magic, a similar service, in the summer of 2018.That said, Loop Returns believes there is a long way to go
With data from returns and exchanges, Loop Returns is relatively well-positioned to take on personalization in a meaningful way.For now,
Loop Returns has more than 200 customers and has handled more than 2 million returns, working with brands like Brooklinen, AllBirds,
