The Swedish startup has stepped up as a staple in the e-commerce puzzle following a merger with one of Europe’s largest supply chain operators.
In its previous form, Returnado’s a cloud-based solution for retailers aims to make the return process smoother for consumers and more profitable for businesses. The idea was to turn the traditionally frustrating process of returning items into a hassle-free business for buyers, who would then be provided with replacement options as a way to generate additional or alternative sales for the retailer.
Now, the pioneer, formerly known as Returnado, is working under nShift banner, such as nShift Returnafter the supply management specialist identifies returns as a missing piece in e-commerce – and in fact his own – the mosaic.
Returnado founder Haider Abdo recently left the nShift brand, but watched the development of his initial imagination and its successful integration into the nShift setup.
He says: “Returnado, like nShift Return, still has the same offer, essentially the same technology and the same market differentiator. The difference is in the scale and its legitimacy for the retail market. “
In this respect, the acquisition and subsequent positioning, together with four other specialized e-commerce divisions, is a perfect storm. Returnardo has established itself in the European market as a major provider of return solutions, but large-scale prospective customers still linked risk to the idea of a scaling partnership.
Now customers get what they crave in the form of seamless return processes, retailers can boast of returns as a true delimiter, and nShift has added the latest string to its e-commerce bow.
Abdo added: “It was never an idea to change the Returnado model, but now it has the organizational structure and scale to make a wider distinction, sign more deals, use more resources and provide more value to industry. ”
Move up in the priority list
The acquisition and subsequent unveiling of nShift Return was completed by September 2021, and over the next six months, the company began to realize this ambition to expand its footprint.
Success was never in question even without the merger, with Abdo already initiating a larger round of funding before discussions began with nShift. However, once the wheels were in motion, the opportunity to better serve a wider range of users was too good to be missed.
“Only in the last year has there been such a clear increase in demand among customers, who now put returns much higher on their list of priorities,” he said. “If you look at the pandemic period as a whole, the change in mindset is huge, but especially in the last year, this realization has become a bigger difference between whether they continue to use a retailer or not.
The reason why retailers have reacted accordingly is because of this pressure from consumers, it is said Abdo. “If you look at the Covid-19 period, businesses had so many worries about deliveries – they couldn’t guarantee product delivery, there were warehousing problems, labor shortages, packaging shortages, availability challenges.
“With all this in mind, they just couldn’t handle the return fast enough. But initially this was good, because returns were not the main source of controversy for buyers.
Now this situation has changed almost completely.
Exposure to poor returns
Two years later, people are not only watching the processes of return and success, but are ready to take action against unsatisfactory experiences.
Abdo says this would probably happen over time anyway, through the natural evolution of online shopping. However, he acknowledged that the pandemic had accelerated the trend.
Shoppers who have traditionally been willing to shop at the store have suddenly been forced to buy products online, he said. At first, they would assume that any slow or bad return process is the norm. However, as they became more digitally savvy or focused on e-commerce, expectations have risen. The initial annoyance is no longer a reason to stop shopping from this provider.
Abdo adds that Returnado has played a role in reconfiguring this customer search. “Before, technically, no one was bad at profitability, because everyone was bad. That was the level of service by default, so no one complained or even noticed that it was a problem, “he said. “However, with Returnado, some retailers have started to offer their customers a better way. And now, like nShift Return, the company is offering this awareness to even more people.
“In this situation, when customers get this better experience elsewhere, they are less likely to have a bad experience with someone else. Those retailers who still rely on ignorance about returns will be quickly discovered and abandoned. ”
Another shift from Sweden
As a serial investor and entrepreneur, Abdo is known in the Scandinavian market for feeling opportunities where others are not. But he is quick to point out that although nShift Return is a pioneer in the e-commerce space, he is not the first to break the retail matrix off the Swedish coast.
“The idea of the retail sector not realizing that the process could be improved while it wasn’t, can be brought back to Clarna,” he said. “The bar for online shopping, especially in the Scandinavian countries, was quite low before they appeared.
“It was difficult to make purchases, get credit or make transactions in a satisfactory way. But since this was the norm everywhere, no one doubted how much it irritated buyers or harmed the business.
“Then Clarna arrived and gave consumers a reason to demand better and businesses a way to improve their profits through a better offer. At this point, if your company does not respond, does not accept and does not innovate, it was abandoned. It was that simple. “
This ambition to do better and improve the sector so directly is what has driven Abdo in all his entrepreneurial endeavors to date. His scope continues to expand far beyond the boundaries of retail, whether as a founder or investor. But this change because his Returnado child stands high among his achievements.
“It was the fourth company I founded, but the most successful so far,” he said. “It was an exciting, challenging and humbling journey, from reading these and trying to identify gaps in such a significant industry from my own basement, to being part of a world leader in e-commerce logistics services.
“It was an amazing five-year journey for me and let it last a long time for nShift Return.”