Deal Dive: How (Re)vive expanded 10x last year by assisting retailers in recycling and reselling returned items
The fashion industry faces a significant issue: despite many returned items being unworn or undamaged, a vast majority end up in landfills. In 2022 alone, around 9.5 billion pounds of returns were discarded, according to data from return logistics software company Optoro. New York-based startup (Re)vive aims to tackle this problem by offering a sustainable solution for returned merchandise.
(Re)vive accepts products that retailers consider too damaged to resell and refurbishes them — whether that involves washing, reattaching a button, or simply removing some lint or pet hair. These items are then sold through various channels, and (Re)vive’s data platform helps retailers monitor and manage their waste effectively.
The technology behind (Re)vive is particularly noteworthy. Founder and CEO Allison Lee explained that the company’s software enables employees to sort, label, and determine the fate of a box of returned items in approximately three minutes. The software also provides retailers with insights into how much of a specific SKU (Stock Keeping Unit) was returned and the potential revenue from reselling the refurbished items.
Items that are refreshed and still in season are sent back to stores, while out-of-season goods are sold on third-party platforms like eBay and Poshmark on behalf of retailers, with (Re)vive taking a commission from each sale.
Lee mentioned that there is increasing demand for (Re)vive’s services as retailers face mounting pressure to reduce their environmental impact. Companies are now under greater scrutiny from investors and shareholders regarding the disposal of damaged goods — they can no longer simply write off these losses as part of doing business.
(Re)vive’s approach offers multiple benefits. It not only helps companies become more sustainable and reduce their environmental footprint but also provides a financial incentive by recouping some of the potential losses from returns. While some companies may be drawn to (Re)vive for its environmental impact, many are likely to be motivated by shareholder pressure and the opportunity to improve their bottom line.
Moreover, integrating (Re)vive’s services is relatively straightforward for retailers. They already ship out their “damaged” items from stores, and Lee humorously noted that working with (Re)vive is as simple as changing the shipping label to send these items to a (Re)vive warehouse instead of the company’s own facilities.
