Two Boxes

Two Boxes is a returns-processing software company serving direct-to-consumer brands and third-party logistics providers (3PLs). Its focus is the warehouse side of reverse logistics — what happens after a returned item arrives at the facility — rather than the consumer-facing return initiation step. The platform digitizes brand standard operating procedures so warehouse associates can inspect, grade and dispose of returned units through guided workflows, capturing item-level data such as SKU, product type, return reason, damage attributes and photographs.

For 3PLs, the product is positioned around faster processing, reduced associate training time, standardized handling across multiple brand clients, and accurate billing for value-added services. For brands, it provides real-time dashboards and item-level return detail covering restock rates, quality defects, fraud signals and the status of returns in transit versus processed. Two Boxes ships an integrated hardware-and-software package intended to be operational at go-live and integrates with brands' existing returns stacks, including Loop, Happy Returns, Narvar and Redo. Product areas added around 2024 include a partner portal for onboarding, multi-language localization of the warehouse interface, recommerce enablement through a partnership with Arrive, and a set of fraud- and abuse-detection products.

The company was founded in 2022 by Kyle Bertin (CEO) and Evan Stalter (CPO) and launched its product in 2023. Its team page lists engineering, product, customer success, onboarding and finance roles, plus an advisory group drawn from Shopify Fulfillment Network, Loop, Whiplash, Passport, 6 River Systems, Optoro, Inmar Intelligence and Stord.

Founding story

The founders' stated premise was that there had to be a better way to handle returns, and the company set out to build returns-processing technology that maximizes the recovered value of returned goods while reducing the volume of inventory sent to landfill.

Business model

Two Boxes sells software to 3PLs and to ecommerce brands, deploying a combined hardware and software package into warehouses and integrating with customers' existing returns, ecommerce and warehouse systems. Sales are handled through a demo-request motion, with pilots that the company says convert to paid expansion.

Software sold to 3PLs and brands; the company also positions its data as enabling 3PLs to charge accurately for value-added returns services.

Traction

As of the September 2024 funding announcement, Two Boxes had processed more than one million returns, served over 20 3PLs in North America and processed over $100M in returns for more than 120 merchants since launching its product in 2023. The company reported a 100% pilot conversion rate, with 100% of 3PLs that tested the software expanding usage within 90 days, and customer-reported results including an 80% reduction in employee training time, a 50%+ efficiency increase and a 15%+ increase in returns revenue. Its website cites an NPS score of 81. Published case studies report outcomes such as a 95% restock rate at GoBolt, a 3x processing speed-up at Capacity, a 50% reduction in returns processing time at Flowspace, and a 94% decrease in fraudulent returns at birddogs.

Latest developments

The company announced a $3.2M raise to accelerate its AI-powered returns processing platform, positioned around helping 3PLs and retailers fight fraud and recover inventory faster. Other recent activity includes a partnership with Slotted to help retailers find returns-ready fulfillment partners, a reverse logistics stack partnership with Happy Returns, a joint eBook with Narvar, and a "Returns 2.0" tech-enabled reverse logistics launch with Barrett Distribution Centers.