Increased competition online, low brand loyalty and high return rates averaging around 30% and costing on average over 20 USD, per return, call for online stores to prioritize user experience, retargeting and re-conversion. Merchants are looking for tech solutions that help maximize their bottom line by reducing costs at key parts of the value chain. Wellstreet’s extensive experience in e-commerce and focus on creating customer experience fit for the expectations and needs of a digital consumer, as well as Wellstreet’s experience in B2B enterprise sales, making it a great match with Returnado.
Wellstreet was the company's first investor, going in pre-product in 2016, and supporting it until 2021. The company was then at a point in which it was operating with better results than most competitors, while also catching the attention of larger industry players. This context indicates that Returnado was outgrowing Wellstreet’s stage of investment. When they reached the point of a scaleup, two American PE firms acquired Returnado as part of the merger with the market leader nShift, a transaction for which Wellstreet took leadership. The founder is still part of Wellstreet’s network of founders that supports the portfolio and the programs, contributing with knowledge and learnings gathered throughout his time building the company.