Adrian Wilburn and Matt Vargas — two IU seniors studying finance and exercise science respectively — co-founded Returnit, a Bloomington startup focusing on making the online return process easy and convenient for customers.
The company wants to make the online return process as seamless as the online ordering process. Wilburn said large corporations often neglect the return process because they do not want customers to return items that are flawed or unwanted. Making it easier for people to return their flawed or unwanted items ensures more responsible consumption.
“We think it’s an exciting idea,” Wilburn said. “There’s a couple more companies doing it on the west coast and they’re having some success from a funding standpoint and a traction standpoint.”
The company offers four pickup methods: doorstep, dropbox, handoff and scheduled handoff. After selecting their pickup method on the website, the customer enters their return information and uploads their shipping label or QR code so it can be printed by Returnit.
For doorstep and handoff pickups, the company’s couriers are notified through a dashboard and arrive at the customer’s location to pick up their packages. If the customer needs packaging or wants to hand off their return directly to a courier, they can use the handoff or scheduled handoff options. For contactless doorstep and dropbox returns, the company will contact the customer when the return has been picked up and again when the return has been dropped off at FedEx, USPS or UPS.
For all pickup methods, the customer will receive a picture of the return receipt.
The company charges customers $5 per return. If the customer needs packaging, the company charges them an additional $1 per return. Customers can receive packaging for up to five items.
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Wilburn said California-based Returnmates is the most similar startup to Returnit.
Returnmates is an online shipping company that picks up returns purchased from any online retailer. In 2021, the company raised $5 million in its first round of venture capital financing.
Wilburn said there are three main differences between the company and its competitors: Returnit is quick, full-service and offers the dropbox return method.
“We apply the DoorDash model of coming within an hour to pick up your return when you file it,” Wilburn said.
In January, DoorDash introduced its Package Pickup service. Wilburn said the difference between Returnit and DoorDash’s service is that DoorDash does not offer the full-service packaging experience and the dropbox return method.
The company will compete in the annual Clapp IDEA Competition hosted by the Kelley School of Business’s Johnson Center for Entrepreneurship and Innovation. The competition allows IU students to pitch their business ideas to investors for the opportunity to win up to $25,000. The presentations will take place on April 7.
Wilburn said the company will look to expand and speak with other investors after the competition. He also said Returnit is prepared to focus on marketing and sales since it has not yet pursued a serious marketing campaign.
Vargas said the company has eight couriers who will get more involved as volume increases. Returnit is currently partnering with Tenth & College Apartments, a Cedarview Management property, to house one of their dropboxes.
“They were super annoyed with a bunch of people who would come into their office expecting the leasing office to deal with their returns,” Vargas said. “They don’t have the time for that because they’re getting enough packages in as it is.”
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Suzanne O’Connell, the vice president of real estate at Cedarview Management, said Returnit’s dropbox is an amenity for their residents.
“We receive so many packages incoming for our residents,” O’Connell said. “We needed to make sure our outgoing packages were being handled professionally and in a timely manner. Our hope is that the Returnit box is giving that resource to our residents.”
Since making its first return in January, Returnit has made more than 15 returns. The company’s goal is to process 50 to 100 returns during a monthly period and land more partnerships with Bloomington apartments by the end of the spring semester.
