California based online returns platform Returnly has secured a $3.2m seed funding round led by Index Ventures. Returnly lets merchants offer shoppers a seamless online product returns experience. Eligible shoppers get an Instant Refund™ they can use to buy again at that store immediately, turning product returns into repurchases.
Returnly fronts consumers their money in the form of an online wallet that can be used for repurchases from the same brand. Once the retailers receive the original good, the money is taken out of the wallet and put back in the customer’s account. This essentially amounts to a pot of money that screams ‘buy something with me’ to customers with puppy dog eyes. There are all sorts of behavioral economic forces at play in such a situation, but needless to say, people’s propensity to repurchase goes through the roof.