Read the 8-page pitch deck a founder backed by Slow Ventures is using to try to solve retail's $25 billion a year return problem

"We've all been there: You're shopping online, amass a full cart, and check out. You're over budget, but chances are those jeans won't fit right or that jacket will be too similar to the one you already own. At least one thing will end up in the return pile in your corner and make its way back to the seller. E-commerce - with its ease of purchase and lack of trying on - has led to ballooning returns."

"That's because the answer isn't good for business or the world at large. In 2023, apparel companies spent $25.1 billion in processing costs for returns, estimated a Coresight Research survey of 100 apparel retailers. That same year, more than 8 billion pounds of returns were sent to landfills, according to Optoro, a company specializing in returns solutions. 'They just think of it as the cost of doing business,' Alphons said."

Postmoda pivoted from peer-to-peer clothing rental to a platform that buys and resells luxury and designer returns. The platform aims to rescue returned items that retailers often send to liquidators or landfills because relisting costs are high. Ecommerce returns are growing, with about 20% of online purchases expected to be returned and apparel companies incurring billions in processing costs annually. Postmoda seeks to work with brands and retailers to take returns off their hands, relist them with minimal processing, and reduce environmental harm. The company raised funding from firms including Slow Ventures and Long Journey Ventures and several entrepreneurs.

Read at Business Insider