Weston Entrepreneur Sees A New Market In Returned Goods

WESTON, CT — As the pandemic has changed the way we shop, it has also altered our approach to how we return the stuff that doesn't fit, is the wrong color, or lacks the vibe it had in the catalog.

During the initial months of the COVID-19 pandemic, total online consumer spending increased by 43.7 percent year-over-year. That pace continued through August 2021. By the end of that year, a record $761 billion of merchandise was returned, according to a report from the National Retail Federation. Those online purchases are three times more likely to be returned.

With the notable exception of Amazon, getting those returns back in the mail to the online merchants is a pain. But one Weston entrepreneur is taking a crack at easing that pain, and believes he has discovered a growing and recession-proof business.

Kevin Dougherty owns and operates Returnable out of Weston. His company has begun rolling out drop-off boxes for shoppers to deposit returns as easily as mailing a letter.

Returnable employees pick up the goods from the drop-off bins regularly, check to make sure they are in "returnable condition" — having all the tags intact, in the case of clothing, for example — and handle the exchange.

The revenue model is subscription-based, $12.21 monthly, and so is clearly targeting the chronic return-er. Dougherty says the service pays for itself in gas money and time spent, at two or more returns a month.

Dougherty sees very few obstacles in the way of that growth, as his niche is almost completely clear of competition currently. He says that although there are some businesses that offer services to the merchant to ease the return process, his is the only one targeting the consumer. He predicts online shopping will continue to grow, albeit more slowly than it did in the couple of years immediately following the pandemic, until 50 percent of all retail is done online.

And why wouldn't it?

"If people have this really easy — literally, a two-step, process — we believe they're going to buy more items because they know they have this easy way to get the items back," the entrepreneur said, "You can test things out, you can try them, and really be happy with your purchase."

The business is recession-proof, according to Dougherty, and the current economic downturn is "good for Returnable, because people will be more money conscious, and instead of letting a return sit, will want to get that money back into their account sooner."

Making the process a breeze for customers, is also a win for merchants, Dougherty said, as it cuts down on the number of returns that businesses must bounce back. A "surprising number" of consumers return items in "unreturnable condition," and Returnable's workers cut those out of the pipeline completely. Reducing carbon emissions and waste associated with sending back purchases to the seller the old-fashioned way also makes for a greener footprint, Dougherty said.

A drop-box at Lily's Weston Market recently joined the flagship operations at apartment buildings in Norwalk, Stamford and Manhattan. More locations are scheduled to come online in Washington, D.C. and Atlanta shortly, as Daugherty continues to grow his five-person team.