Auctane Buys Return Rabbit to Bolster Shipping Solutions

Shipping and logistics company Auctane says it has acquired returns management platform Return Rabbit.

The deal — no dollar amount was provided — is designed to bolster Auctane’s existing shipping portfolio, which includes businesses such as Stamps.com ShipStation, Metapack and Endica, per a Monday (June 12) news release.

“In today’s ecommerce landscape, virtually every merchant has to grapple with how to handle customer returns, and the stakes are high,” Auctane CEO Albert Ko said in a news release.

He added that the “analytics and exchange-focused approach that Return Rabbit brings to the conversation empowers merchants to make smart decisions about this critical part of the delivery experience.”

Launched in 2021, Return Rabbit offers full-catalog exchanges, custom return reasons, and deep reporting functionality, and has become a “leading” solution for Shopify sellers, per the release.

“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 relentless focus on increasing revenue retention through increased exchanges and store credits,” Gagandeep Singh Suri, the company’s founder and CEO, said in the release.

“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.”

Auctane was previously known as Stamps.com before going private in 2021 after accepting a $6.6 billion all-cash offer from private equity firm Thoma Bravo.

The company’s purchase of Return Rabbit comes at a time when, as noted here recently, retailers that charge fees for a return are finding themselves on a tightrope.

“On the one hand, fees levied when customers decide not to keep what they’ve bought help offset the costs of handling those returns — the shipping, handling and restocking,” PYMNTS wrote in May.

For example, a shopper could order several pairs of shoes to determine which size fits best and keep just that pair.

“Ostensibly, the specter of being charged for, say, over-ordering and then returning an item (even with those convenient boxes and labels provided), would lead over time to a more thoughtful shopper, with less waste in the commerce system itself,” that report said.

For merchants, the maintenance (or even boosting) of short-term margins must be weighed against the notion of losing the customer for good.

Meanwhile, research by PYMNTS and Cybersource finds that 96% of shoppers review return policies before making a purchase. Joint research in the “2023 Global Digital Shopping Index” showed that roughly two-thirds of U.S. consumers had used returns by mail or in-store, which suggests that returns are a vital integral part of the shopping experience.

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