Auctane, which has built one of the parcel industry’s most formidable multicarrier portfolios, said Monday it has acquired the assets of Return Rabbit, a returns management provider. Terms were not disclosed.
Auctane owns brands such as ShipStation, Stamps.com, ShippingEasy, ShipEngine, ShipWorks, Metapack and Endicia. The acquisition will complement Auctane’s portfolio of multicarrier shipping solutions by equipping e-commerce merchants with an intuitive and adaptable returns management offering, the company said.
Return Rabbit, launched in 2021 and backed by Supply Chain Ventures and Multiverse Investments, has carved out a returns management niche for Shopify sellers, among other groups, Auctane said.
Loran Gutt, Auctane’s vice president of corporate development, said in an interview that one of the big gaps in the market for merchants are siloed platform offerings. Typically, providers have one platform offering selling, a second offering shipping and a third returns. Return Rabbit provides an integrated solution for retailers, he said.
Auctane also discovered that Return Rabbit had leadership expertise in revenue retention, which would allow merchants to keep more of the sale from the original transaction through the suggestion of suitable replacement items and store credits, according to Gutt. “We were also very impressed with its analytics, which helps to mitigate the cost of returns,” he said.
“In today’s ecommerce landscape, virtually every merchant has to grapple with how to handle customer returns, and the stakes are high,” said Albert Ko, Auctane CEO, in a statement.
According to a recent survey, 44% of U.S. shoppers reported being less likely to shop with a retailer that has a difficult return experience.
Return Rabbit’s enterprise-grade analytics allow small and midsize merchants to better understand the reason their customers make returns and offer suggestions for exchanges that help preserve sales, Auctane said.
“When we started Return Rabbit, the aim was not just to streamline the returns process for retailers but also to convert the entire process into a positive experience for shoppers with a … focus on increasing revenue retention through increased exchanges and store credits. By joining Auctane, we will gain access to a broader set of global resources and capabilities to apply our expertise and solutions to a global client base,” said Gagandeep Singh Suri, founder and CEO of Return Rabbit, in a statement.