Unlock Higher Profits with Smarter Return Solutions with Redo

0:24 Ty Robbins

Yeah, thanks Stephen. My name is Ty Robbins. I am Head of Partnerships over at Redo, a company based out of Salt Lake City, Utah, that is a Shopify app for ecommerce stores.

0:39 Stephen Brown

All right. We're going to do a little bit different webinar. We do these occasionally, but we like to present interesting technologies to our community, our customers. If you are following my newsletter, you've probably seen me post about returns from time to time, and the financial implications of those. We're going to talk about returns, but so much more. Redo is, as Ty and I were talking, it's more than a returns app. It's returns, it's tracking, it's package protection, and Ty will get into this. So we want to highlight Redo. Redo is getting a lot of energy in the ecommerce community, and it's just an opportunity to showcase what they do and potentially see if it's something that could be of help to our customers. So with that, I will kind of step back into the background and let Ty talk. Feel free to send us your questions as we go on. So Ty, tell us about Redo, what you guys do and why an ecommerce business should care.

1:47 What Redo replaces and why returns hurt

Ty Robbins

So I think the number one reason why an ecommerce business should care is the ability to consolidate not only the number of apps that you're using, but the data itself, onto a single platform. So the way I like to think of Redo, and the way it was described to me last week on a call with a prospect, is they reached out and they sent me an email and they're like, hey Ty, am I wrong on this? It feels like as if Loop Returns and Gorgias had a baby, they would name it Redo. And I thought that was a perfect way to put it, because that's exactly what Redo is making possible, is we're bringing in a plethora of different Shopify apps and bringing it into one centralized location.

2:28

So in this diagram, on the left hand side, we see a bunch of different logos in this Shopify app ecosystem. We have our players that are returns, maybe the Loop Returns, Happy Returns or Narvar. We have the classic support apps like Gorgias or Zendesk. We have package protection providers like Route or Navidium. Warranty and claims like Extend or Seel. Order tracking like AfterShip, Shopify has a basic version, and Malomo. What Redo's goal is, is to bring all of these solutions into one cohesive app and do it completely free. On today's call we're going to walk through portions of each section of Redo's platform, from returns, our package protection offerings, support, order tracking, and warranty and claims.

3:20

The hinge product that Redo has, the keystone that holds all of our platforms together, is our returns offering. What we've learned working with many ecommerce brands, around 1,600 today, is that many brands are suffering from inflation and are looking for every opportunity to save. Whether it's the increase of shipping cost or the increase of fraud that's taking over, it's becoming more and more expensive as an ecommerce operator.

4:04

And what many brands have pivoted to doing, such as H&M, Abercrombie and Fitch, J.Crew, and even Amazon Prime today, is they're now beginning to charge for returns. They're no longer offering a free return shipping label to their customers, creating more friction for their customers to return items, which has naturally caused conversion rates to decrease. And so it puts us in a little bit of a rock and a hard place when it comes to being an ecommerce operator and enabling returns. If we offer free returns, our profits are crushed. But if we don't offer free returns, then it's less likely that customers are going to want to try out our brand for a first time.

4:50

So what Redo is attempting to do, and what we've seen a lot of success in over the last three years, is giving you the ability to put the liability of returns on Redo's back, empowering your brand to offer free returns without having to pay for those return labels yourself.

5:14 The Popflex demo, from cart to return flow

Ty Robbins

And so I want to hop in and show you an example of what this looks like. One good example of this is Popflex, which is a very popular women's activewear brand. If you've heard of someone named Taylor Swift, you've probably seen her rocking a lot of their apparel. And so if a customer is on Popflex's website and they go to check out with any item, for example, let's say I want to check out with a dress, the customer is going to have the opportunity to go through their typical checkout process, and they'll be prompted with the opportunity to opt in for a free return shipping label.

5:53

For example, in my cart right now with Popflex I have the black dress and maybe a sapphire skirt, and this is where Redo is presented to the customer. This tab right here, or what we call internally here at Redo, is a cart card, is 100% customizable and valuable to what makes most sense to your brand. So we can match the ethos of your brand to your customers. In this case, Popflex is advertising Redo as easy returns. They customized the widget to be an easy return logo, and they put in here, if a customer opts in, they're going to get a prepaid shipping label for $1.98, and they won't have any questions or any extra fees if the customer would need to make a return in the future. At any time a customer can opt out of this offering, or they can add it back onto their cart.

6:55

If a customer opts in here, then Redo is going to be 100% liable for this customer's return shipping label. This is how we're able to shift the burden of cost from you as the merchant and put it onto Redo's back. When a customer goes through and checks out with Popflex, and say maybe this black dress didn't fit the way I wanted it to, at the end of the day, any customer can come into the merchant's website, they can select somewhere on your site to start a return or exchange. In this case, Popflex has a branded return portal where a customer is going to be prompted to enter in their email address and order number.

7:46

Once a customer enters in this information, they'll be taken to a page that looks very similar to this. I'm just going to hop into my demo account, because right now I don't have any active orders with Popflex. Once the customer enters in their information, this is the page that they'll see. They'll see their customer account, a branded return portal, and they'll have the opportunity to track their package from this page. Rather than a customer going to a USPS, maybe FedEx or UPS tracking page that is bland and boring, the customer can be taken to a beautifully branded page that fits the ethos of your brand, where they can check the status of their package, see what's in their order, and they can also see any upsells, promotions or notifications that you want to send to them.

8:39

From this same page, the customer can begin an exchange, a return. At this page, the customer can see their order number, which items are associated with their order number, and they can begin a series of questions that you set up as a merchant. Every question that's going to be shown to your customer is going to be dynamic and customizable to the needs that you have as a store. For example, in this specific journey, we're able to see the back end of it within the return flow.

9:16

This return flow is where the magic happens at Redo. This is where we're able to customize the journey that we want to take our customers on. Here we could segment customers and treat them differently based on who they are, how many times they've ordered with our product, which products they're ordering, and even where they're ordering from. What our data has shown, with the 1,600 brands that we work with today, is the more dynamic and customizable the journey you take your customer through on this return flow, the less likely they're going to go through and hit a cash refund, and the more likely they're going to opt in for an exchange or for an in-store credit.

10:04

Bringing this to life on the customer experience is what we're seeing here. Based on how the customer's reacting to these questions will dictate which questions they will get in return. For example, if they received a wrong item, we could come in and prompt them to upload an image so our customer success team could go through, validate that they received the wrong order, and get them the right order shipped out. Or we can reject it, saying, hey, this is the right order, you're at fault as the customer.

10:35

If the customer came in and maybe it was a fit and sizing issue, we can collect all the data that they're filling out, and we can prompt the customer to either go through, make a cash refund, get an in-store credit, or go through and do a shop now. We can add incentives here, or disincentives like restocking fees on cash refunds. We can dynamically populate items directly in the portal based on what the customer originally ordered, or what we think would make the most sense for them to exchange the item. But at the end of the day, Redo is going to be covering the return shipping label on behalf of this customer.

11:18

If a customer comes through and they want just the refund, they could come in and click the refund button. They'll have the opportunity to schedule an outdoor pickup, meaning FedEx will come right to their doorstep to get that return item to ship it back to you. Or they could simply ship it back to you with a QR code, or print out a label that will be emailed to them directly after they submit the return. Redo is going to coordinate with any shipping carrier in the US and we'll generate labels for each one of those.

12:00

The beauty of what Redo is doing for the return process here is we're facilitating a way for customers to get answers immediately, taking away the number of support tickets you're receiving, and most importantly, we're giving the customer a free experience when they need a return shipping label. I want to take a pause here and just see if there's any questions or anything that I could dive deeper into on the return flow up to this point.

12:24 How Redo makes money and what's free

Stephen Brown

I have a question. I'll kick it off for you, Ty.

Ty Robbins

Please, thanks Stephen.

Stephen Brown

What, um, you know, do you guys have any data, because I expect most brands have existing solutions. So have you guys had any quantified results, before and after Redo?

13:04 Ty Robbins

Yeah, absolutely. And I think a good example of this is Popflex, that we were just on. They were using Narvar about 45 days ago, before they made the transition onto Redo. With Narvar, they saw that three out of 10 customers that went through their Narvar return portal opted in for a cash refund. Fast forward to today, on Redo, 53% of their customers that go through the return portal are electing for an exchange or an in-store credit. This has retained over $500,000 in their business just in the last 30 days.

13:35

But I would say the two biggest things to know of, like before and after contrast, if you are using Loop Returns or Happy Returns or ReturnGO, is the two biggest things you're going to see when transitioning to Redo is, Redo is completely free and we're paying for your customers' return shipping labels. So you're going to see a big elimination of cost, which will boost your margins. And then second, if you're coming from Loop or ReturnGO, you're going to see, what we see is a 12.8% decrease in your refund rate by leveraging Redo's return flow.

14:16 Stephen Brown

All right, hold on, I got to pull on a thread. I had somebody ask, and I thought the same thing. Redo is free?

Ty Robbins

Yep, you're exactly right.

Stephen Brown

How does Redo make money?

14:31 Ty Robbins

Yeah, Redo will never charge you a subscription or any type of monthly fees. Our belief is that merchants are already being burdened enough by market conditions. The only way Redo makes money is if a customer comes in and they opt in for free returns. Redo is going to be liable for the return shipping label. For those customers who opt in and do not need a return shipping label, we make the difference. So you can do the math there. If 10 customers opt in and Redo only has one return, and that return shipping label's around $8, then we're able to make the spread of around, you know, $5 to $7 on this.

15:10 Stephen Brown

Gotcha, okay. And I have another question. I mean, we're mostly looking at, you've kind of bounced around on some of the capabilities, but mainly on the returns flow. Is it an all-in-one package, or can you say, I just want the returns piece but not the tracking?

15:34 Ty Robbins

Yeah, so it is pick and choose, Stephen. If you have the returns offering, then the entire outside apps within Redo are completely free. If you don't have the returns offering, then there are different ways that we can monetize with Redo, through maybe different types of subscriptions. But if you're using the return application Redo has, then the software that does all of our customer support ticketing, similar to Gorgias, will be completely free, included. But I think you hit it on the head, Stephen, is when you use Redo, you don't have to use every single software or feature. You can pick and choose.

16:04 The support app, AI, and integrations

Ty Robbins

But what we've noticed from our power users, around 600 merchants that are using every single feature Redo has, is that when we're having that return data, we're able to facilitate 35% of customer support tickets. So the way this looks is, typically if you're using Loop and then maybe like Gorgias or Zendesk, you need to connect an API to have those two systems communicate one with another. You'll still have to log into Loop and you'll still have to log into Gorgias to clear out your queue. But with Redo, you're able to do everything that Gorgias is doing directly within the Redo platform.

17:02

For example, within our support tab, this is where our Gorgias-like application lives, where you can consolidate every communication channel you have with your customers onto one cohesive platform, and you can reply natively to them. For example, if it's a Facebook comment, Facebook Messenger, Instagram DM or comments, if you have Attentive or a chat bar or email, every single one of those customer communication channels can be put directly into Redo, and you can reply natively as if you were in platform, all from the single page. You can edit your Shopify data on the orders, and you could pull in your return data if a customer has any outstanding returns with you.

17:50

And you can also create returns directly within the Redo support app. For example, let me see if I could find one that is a good example of this. For example, on [unclear] order, we could see all of his return data, and if we click on this plus icon, we can create a return directly for this customer in the app. In addition to this support app, similar to maybe like a Gorgias or Zendesk, we can create rules and automations around these support tickets, around routing them directly to different types of customer support reps we have, automating them based on rule set bases, where if a subject line includes returns, we could automatically send them an email with our return portal link. Or if the body of the message includes maybe something along the lines of a problem with shipping, we could automatically push them towards our shipping claim solution. But at the end of the day, the support app is going to do everything that you have on Gorgias or Zendesk, and it's going to be completely free for you and your customer support team, no matter how many users you have.

19:08 Stephen Brown

So I've got another question from the attendees. You currently support Shopify. What about BigCommerce, any plans to add BigCommerce?

19:17 Ty Robbins

So it's in the road map, Stephen, but it's not number one or two. BigCommerce is number three on our list. We're looking at Salesforce Commerce Cloud right now, where we have two customers on Salesforce Commerce Cloud today, and then WooCommerce, and then BigCommerce is number three on that list. Likely eight months down the road.

19:31 Stephen Brown

Okay. So Chris, that was Salesforce, then Woo, then BigCommerce, eight months. These guys just got a lot of money, a Series A, so hopefully they can move fast. Some other good questions, and I want to piggyback on this one. Does the support app allow you to train it using AI responses? Like, you know how a lot of support apps have AI responses. Is that capability in Redo?

20:04 Ty Robbins

Yep, you're exactly right. So Redo, if you enable it, will pull in all the data that you have within your Shopify account, can review all prior support tickets, like emails, Instagram messages, Facebook messages, and it will essentially create an LLM for you, or a long language model, directly for your ecommerce brand to empower those AI functionalities. We've seen different merchants use this to automate macros for their customer support tickets. We've even seen them automate customer tickets themselves by just relying on AI to auto email back the customers. And we also have a chat bot feature directly on your website, where AI can basically coordinate with your customer on your site, acting as a concierge or a sales rep, where if a customer comes on their site, let me see if I could pull up an example.

20:59 Stephen Brown

Yeah, that was one of the things I was going to ask you next, because there's a couple use cases around customer service with online stores. One is the returns, but the other is like, people are like, hey, tell me about, you know, I'm fat, can the surfboard hold me up, right?

Ty Robbins

Exactly right.

Stephen Brown

So you guys, you're able to train the support app to some of that stuff as well?

21:25 Ty Robbins

Yep, you're exactly right. And it will also read, like, all the data you have on this. So if you're like, hey, I weigh, you know, 250 pounds, will this Stewart board, you know, keep me afloat? Yeah, it may say, hey, you know, the Stewart board maybe is better for people under 250, but the Ripster here is a little bit more reliable for you. And so that's something that the LLM model will be trained on. And the more you use Redo in the ticketing software, the more data we'll have and the more accurate it will become.

21:58 Stephen Brown

And you guys are a pretty big organization. I mean, you guys have quite a large organization, so you guys are really developing quickly.

22:06 Ty Robbins

Yeah, so we have around 90 full-time employees. And Stephen, I would say, like, I'm looking out at their offices right now, we have five rows of engineers and developers, and four of those personnel are dedicated just to AI.

22:30 Stephen Brown

Okay. And you guys just raised a huge round of funding, so you're probably going to accelerate your go to market and your product quickly. Another question from the attendees, sorry if I pronounced this wrong, Zan says, do you have integration with TikTok or Amazon? I'm thinking he's talking about TikTok Shop, and you know, Amazon's interesting, because Amazon's kind of a closed community. But do you guys do anything within those marketplaces?

23:04 Ty Robbins

So we don't have a direct integration with Amazon today. We have a bridgeway where we can connect the two platforms to communicate one with another. For TikTok, we have our ByteDance integration pending review, so I would expect that's going to be approved in the next 15 days.

23:28 Stephen Brown

Awesome. Good questions. Think that's everything for now. Let's, oh, nope, I lied. If a customer doesn't pay the $1.98 at purchase and later wants to return the item, is Redo involved in that process, or do we have to handle that outside of Redo?

23:42 Ty Robbins

Oh, great question. And I should have touched on this more. Redo will still be involved in that customer's return. They will still come to the bottom of the website, or wherever you want to hyperlink your return portal. The only difference is when the customer is going to receive the return shipping label, there's two things that can take place. You as the brand can step in and say, hey, we'll cover this return shipping label, or you could push that cost on the customer, and that amount for that return shipping label will automatically be deducted out of their refund, in-store credit or their exchange value. So whether they opt in Redo or not, Redo will facilitate the return shipping label and we'll generate it for their customer. The only difference would be Redo would just be the one paying for the return shipping label if they opt in.

24:38 Stephen Brown

Another question from the attendees. What shipping platforms does Redo work best with?

24:54 Ty Robbins

So we work with all major carriers in the US, USPS...

Stephen Brown

I think they were referring more to like ShipStation, you know, all the WMS platforms.

25:02 Ty Robbins

Yeah, yeah. So we have a direct integration with, I haven't seen one WMS platform we haven't been able to integrate with. Each warehouse management system or inventory management system will have an access token. With that access token, we can automatically connect Redo with your WMS or IMS. Pretty easy to do.

25:29 Stephen Brown

Okay, great questions. Okay, I think, let's keep going.

25:36 Order tracking and package protection

Ty Robbins

Sweet. And so we walked through, high level, the returns platform. We touched on the support aspect of Redo. The last two pieces I want to touch on briefly is the ability to control the narrative around your shipping, which is order tracking, and then the ability to capture additional revenue with package protection.

So with order tracking, most cases what takes place with an ecommerce brand, maybe on Shopify, is a customer will order on your website and the customer will receive a confirmation email that their order was placed. This confirmation email is usually a generic email that Shopify sends out. What Redo has made possible is for you to customize every trigger and every email that's being sent to the customer.

26:25

And what this can look like, for example, we have different email triggers here. On the left hand column we have triggers that can be sent, from email confirmation, in transit, out for delivery, and the list goes on. The goal here is, rather than Shopify or the shipping carrier reaching out directly to you as the customer saying, hey, like, your order is out for delay, that sucks, we want the brand to have full control over that communication with the customer. Rather than UPS reaching out saying, hey, it's stalled in transit, you as the merchant can control the email that is sent to this customer based on the trigger, and you could make it more personalized. Like, hey, sorry, it seems like your package is taking longer than expected, here's a $10 gift card next time you shop with us, as an apology for the delay. One way that you can leverage it.

27:21

And what most merchants do is they aren't going in and building out the emails directly in Redo, but rather they're leveraging our API for our triggers and connecting it directly with their email service provider. Whether you're using, you know, Sendlane or Klaviyo, we can connect these API keys or triggers for carrier notifications to connect with your Klaviyo account, to automate those emails being sent. That way you could keep all your branding and every single email directly in one location, but you could get more grand when you're communicating with your customer base.

27:58

Lastly is the package protection component on Redo, and I want to bring up a quick example of this. So a merchant that's using Redo that does a pretty significant volume of orders each month is Baltic Born. What we've noticed is when a customer comes on their site, they have a 92% likelihood of checking out with Redo's offering. This is where Redo is going to be liable for the return shipping label, and where the customer can opt in for package protection.

28:39

The package protection on Redo can be in two ways. You can do it in-house, where you keep 100% of your package protection proceeds, or you could do it where Redo is liable for any lost, damaged or stolen packages. In that case, there is a revenue share split on the package protection amount. In this case, Baltic Born is doing an in-house solution, where they're offering package protection themselves and they're keeping 100% of the proceeds. Baltic Born's typically charging anywhere between 0.5% and 3% of order value for their package protection, and they have around a 90% adoption rate on this. What we found is our merchants using our package protection offering have an 85% margin on this amount. So for every dollar they take in from this opt-in, they're keeping around 85 cents.

29:38

Again, customers at any time can opt out of the free returns and package protection offering, but if they do, they will then be liable for return shipping, and if their package is lost or damaged. If the customer comes through and they order something, let's say from Baltic Born, and their package is lost or maybe damaged in transit, the customer at any time can go through the portal and they can report a shipping claim or warranty. From here, very similar look and feel as the return portal, it will be 100% customizable, but the customer can see their order number and select which item or items have had a shipping claim attached to them.

30:24

Similar to the return, the merchant can design the questions, or the journey they take their customers on, when they're filing a claim. They could prompt them to upload a photo. And then at the end of the day, you as the merchant will have an easy way to field every shipping claim request, and based on how you set up your shipping claim flow, you'll have all the information that is needed to send it off to UPS or whatever carrier you use to file a shipping claim. And in most cases, around 60 days, they'll be able to refund you for the full amount of the item.

31:12

And so the three biggest takeaways from Redo's platform is, it's completely free, we pay for your return shipping labels, and lastly, we're able to consolidate typically two to five different applications you're using in the Shopify ecosystem all onto one cohesive platform, at zero cost. And Stephen, not sure if we can open up the floor and do Q&As with anyone that has some, and dive into areas that are maybe more pertinent to this listener group.

31:37 Setup, case studies, and wrap

Stephen Brown

Yeah, so if there's any other questions, just keep feeding. I think we got a big batch, Ty, but let's take a pause for questions. If not, I'd say let's go back and kind of talk about, you've referred a little bit to some success stories. Let's talk a little bit more, and then we can wrap up and see if there's any final questions.

32:18 Ty Robbins

Perfect. Gonna fast forward through a few of these to dive into.

Stephen Brown

I have a good one, I know you have a slide on this. What setup services are included?

32:24 Ty Robbins

Yeah, so Redo will facilitate the entire onboarding of Redo. So your customer service team or your director of ecommerce won't need to lift a finger if you don't want them to. I would say in most cases, we sit down on a 30 to 40 minute call and we white glove set up the entirety of Redo for you. Whether you want to go live with the returns offering, shipping protection, support or order tracking, we'll be able to white glove set up the entirety of it.

33:06

But referring to those case studies, and kind of success stories, two prominent ones that I want to highlight today is Made by Mary and Freebird. Made by Mary, they're a fairly large business. They were able to get fully implemented and onboarded in two hours of time. This automated around 90% of the return and exchange issues, and they were able to save literally $175,000 in the last year.

33:42

Similar with Freebird. Freebird took two days of implementation. The Redo team flew out on site to implement them in person, which we love to do. They're on pace to save just around $325,000 this year alone. They saw an increase in their conversion by 5.9%, and their return software expenses dropped all the way to zero.

34:11

And so what I recommend, if those of you in the room are interested in learning more about Redo, or if you have additional questions or want to see if your use case may be a good fit for what Redo can offer, feel free to shoot me an email, [email protected]. I'd be more than happy to introduce you to my team, or I could even help you on a one-on-one basis to answer your questions, walk you through what Redo's platform can and can't do, to really see if it would be a good solution for you and your team. In addition, I'll go ahead and I'll drop my calendar link into the chat, so that way, if it's easier to book a call, you can just go right directly to my calendar and I could do that on a one-on-one basis with you. But Stephen, anything else I could dive deeper into for the group?

35:11 Stephen Brown

Yeah, we take any final questions. Okay, we got one. Okay, let me send this out. I'm going to send Ty's calendar link out to the audience, so feel free to schedule him directly there. Any final questions from those that have joined us? Obviously, if you're watching this on demand, you can use the same email address to reach out to Ty.

35:45

Doesn't look like we have any other questions. I think this is a super interesting solution, Ty. You know, the pricing is really compelling, your case studies are amazing. I'm glad you've been able to spend some time with this group. And for anybody that's watching on demand, check out Redo. They're a rising star in the ecommerce community, and save some money on your ecommerce business. With that, we'll call it a wrap. Thanks Ty, thanks all of you who joined us.

36:11 Ty Robbins

Hey, thanks Stephen. Bye.