BNPL firm Affirm acquires Returnly in $300m deal
Returnly enables online shoppers to generate an instant merchant credit when initiating a product return, so they can order a new or replacement item without delay while their return is processed.
The company has processed over $1 billion in returns for more than 1,800 merchants. By settling orders in real time and taking on the risk of product returns, Returnly aims to increase customer satisfaction and help businesses to achieve higher return-to-repurchase rates.
Max Levchin, CEO and founder of Affirm, says that consumers’ expectations for the return and exchange process have increased significantly in recent years.
“In 2019, Affirm invested in Returnly because we recognised their technology’s ability to help merchants remove friction from returns, drive loyalty and retain more customers,” he says.
“Store credit, issued before the item is actually returned, is now a practical requirement in highly competitive segments like fashion and lifestyle.”
Eduardo Vilar, CEO and founder of Returnly, adds: “We started Returnly to fix the broken returns model that offered consumers and merchants nothing but downside and frustration.
“As returns continue to challenge and inhibit commerce, we believe that now is the right time to join forces with Affirm and expand the reach of our mission.”
In 2020, US consumers returned around $428 billion in goods to retailers. The rate of returns for online purchases is often three times that of goods bought in-store and the number of online returns more than doubled in 2020.