Our investment in Two Boxes

A logistics network dedicated to maximizing the value of returned e-commerce inventory

We are excited to announce that Matchstick Ventures Fund III has completed an investment in Two Boxes. Two Boxes is the first purpose-built logistics network dedicated to maximizing the value of returned e-commerce inventory.  

Thanks in part to the COVID-19 pandemic, the growth of e-commerce has greatly accelerated in the United States. This rapid growth has exposed many inefficiencies and issues in the supply chain, particularly when it comes to management of returned goods. 

While retailers strive to make returns as easy and free as possible for their end customers, they bear the brunt of lost time, money, and even goods on their end. Many retailers buy new products even as they have perfectly good inventory in their returns channels, and up to 50 percent of returned goods end up in landfills or are otherwise disposed of due to inefficient reverse logistics processes.

Consumers and retailers alike are also becoming more cognizant of the sustainability of their purchasing behavior and supply chain decisions, as disruptions in both the delivery networks and real estate markets have created new opportunities to solve this universal problem.

Two Boxes enables a network of micro returns centers (MRCs) that operate in facilities smaller than 10,000 square-feet and strategically located near high-demand areas. By locating MRCs close to consumers, it enables “grading,” — determining the product’s quality and ability to be resold — to take place as soon as possible after a return is initiated and leaves the inventory in areas where retailers can maximize resale opportunities. 

Two Boxes is also developing software to track return quality and integrate with existing demand and supply chain planning software to empower retailers to optimize and improve the economics of returns. By providing clear and quick visibility to return quality, Two Boxes can help reduce the need for retailers to order and hold excess inventory, while also increasing the probability of selling inventory at full price by shortening the amount of time it takes to process returns. Through eliminating long-haul routes between major metro areas and processing facilities, Two Boxes improves the overall sustainability of retail supply chains and also reduces the probability a return ends up in a landfill.  

With our experience in retail technology, we have always believed the returns space is prime for disruption. We met Kyle Bertin and Evan Stalter through an intro from another founder and were instantly drawn to their energy, intellect, deep thinking and hustle.

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Ryan Broshar
January 27, 2022