Returbo is a market leader within the secondary market for e-commerce products, a profitable business which will likely generate more than €6M in revenues in 2015. Returbo garners profitably by selling customer returns and other secondary market products through its more than 30 online sales channels including Amazon and eBay, offering consumers brand products at unbeatable prices.
Since launching its campaign on Companisto, Returbo has secured more than 77,350€ of its 200,000€ goal. The company is valued at 11,500,000 €.
“The cost of returns processing often exceed the recoverable proceeds. Therefore, these products are mostly sold unchecked or even unsorted trader, exported to third countries or simply destroyed. This process is very high depreciation for online retailers and manufacturers. Returbo takes over the complete reception and storage of your returns and check the functioning of the goods. After checking the condition of the goods item is recorded in our system and available to more than 30 sales outlets for sale. Following the successful sale of your returns you receive your settlement,” according to the company’s website.
Current shareholders and investors include people and companies that provide strategic benefits (e.g., customer acquisition through portfolio synergy): Martin Sinner, founder of idealo.com and current online CEO of Media/Saturn group; German Startups Group, shareholder of numerous e-commerce businesses such as Junique.com, Katzenland.de, HundelandC.de, and Amorelie Investitionsbank Berlin (IBB); and Harbert Venture Loan Fonds.
Having reached a “breakeven” point, Returbo decided partially to finance growth with the help of the crowd in order to increase brand awareness and improve communication with consumers:
“We plan to scale up our successful model by intensifying our marketing & sales activities and by expanding our IT infrastructure, particularly in the area of customer relationship management (CRM). While doing so, we can use previous investments in our platform because only 20 % of the capacity of our logistics center is currently being used, which is why we need relatively few capital to significantly increase revenues and profits.
“One of the most important reasons why we have chosen to launch a crowdfunding campaign is that Returbo has not placed much emphasis on its public image thus far. We deliberately decided not to place too much emphasis on publicity because we first wanted to occupy the very lucrative market ourselves, to create barriers to entry for potential competitors by developing our innovative Returbo platform and making cooperation agreements, and to defend and improve our position as the market leader. Through this campaign, the relaunch of our website, and other PR activities, Returbo is now actively raising public awareness for the first time. Through our expansion, we want to achieve a larger market share and ensure that competitors may enter the market less easily.”
Simon Schmid co-founded Returbo after completing his studies at WHU – Otto Beisheim School of Management and directs the company’s strategy, acquisition of new partners and development of themarketing and sales department. Thomas Notemann, Head of Finance & Operations, combines his long-term experience in conventional commerce (in the retail, wholesale, and mail-order sectors) with his expertise in developing e-businesses. At Returbo, he is responsible for both finances and operations. Sebastian Seyda co-founded Returbo, contributing his experience gained from working for Brands4Friends, Amazon, and Bild-Shop Seyda also directs marketing and sales.
For more details and financial information regarding Returbo’s crowdfunding campaign, registered Companists may click here. The campaign closes 23 October 2015.
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