Arrive Raises $16 Million, Taps Maersk and DHL for Recommerce Consortium
Arrive Recommerce, a technology company that merges returns and secondhand sales in one platform, has raised $16 million in Series A funding as the firm seeks to onboard more brands and get out in front of more third-party logistics (3PL) providers.
Instead of collecting pre-owned inventory from consumers, Arrive built its Returns to Recommerce platform to help retailers and brands direct their non-new returns, excess inventory and damaged goods into a branded revenue-generating resale channel. In the company’s own words, the platform “focuses on turning a cost center into a profit center.”
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Arrive says the modular Recommerce Management Technology can help brands and retailers launch a profitable, branded and sustainable resale channel in fewer than eight weeks.
“Recommerce should be a core pillar of a brand or retailer’s strategy,” said Rachelle Snyder, CEO and co-founder of Arrive Recommerce, in a statement. “Our investors and brand partners share our enthusiasm about the evolution of this space, and this funding will allow us to expand our platform, continuing to lead this space with innovation and brand protection.”
Previously known as Arrive Outdoors, the company is expanding at a time when recommerce, particularly branded resale, continues to boom. In 2022, 88 brands launched dedicated resale programs, bringing the total in the space from 36 to 124, according to ThredUp’s 11th annual Resale Report.
The report also found that the global secondhand apparel market is set to nearly double by 2027 to $351 billion. In the U.S. alone, the secondhand market is expected to reach $70 billion by 2027, up from $39 billion in 2022.
Current notable customers include brands like Burton Snowboards, outdoor cooler and accessories seller Yeti, home and bedding textiles brand The Citizenry and maternity apparel seller Blanqi. The company wants to power recommerce for brands and retailers ranging in size and industry across apparel, outdoor products and hard goods.
In providing a new resale channel for brands, Arrive aims not just to deliver a new revenue stream for them, but also help them implement sustainable practices that can reduce waste and operational costs—ultimately enabling them to achieve their net-zero goals.
“Recommerce is a trend that is exploding with demand from both the brand and consumer side. By providing a profitable sustainable program with our returns-based resale offering we have hit a sweet spot in the market,” said Arrive’s co-founding chief operating officer, Ross Richmond, in a statement. “It’s great to be solving a problem that brands have been unable to solve effectively to date and create an opportunity for consumers to buy like-new products directly from the brands they love.”
Arrive also offers a returns assessment program that gives brands insight into the average resale value of their products. Brands can send the company a pallet of 100 randomly selected products that have been sent back by shoppers and are unable to be returned to stock or sold as new. They are graded and priced based on condition.
The company previously served as a rental platform prior to 2022, facilitating rentals of outerwear, sporting equipment, camping tents and more for companies like Eddie Bauer, Arc’teryx, The North Face, Columbia Sportswear and Marmot. Arrive expanded its partnership with Eddie Bauer to develop the (Re)Adventure resale platform late last year, but the program has since been discontinued.
Alongside the recent funding, the company unveiled the launch of the Arrive Recommerce Operators Consortium roping in top supply chain operators and retailers interested in recommerce.
So far, logistics players including Maersk, DHL Supply Chain, Ryder System and SCI are among those who have joined the consortium, which promotes the use of recommerce management technology worldwide.
The Series A funding was co-led by Javelin Venture Partners and Climatic VC, with participation from other funds including Maersk Growth, Sidekick VC, Cosmic Venture Partners, 444 Capital, Freestyle VC, Animo VC, Banana Capital, Alpaca VC, Regeneration VC and Wedbush Ventures.
“As a company committed to sustainability and responsible business practices, Maersk Growth is proud to invest in Arrive Recommerce’s mission to reduce waste,” said Peter V Jorgensen, Partner at Maersk Growth. “Arrive’s technology offers a profitable solution for brands to manage their non-new returns while also reducing their environmental impact. By supporting Arrive Recommerce, we are driving innovation and positive change in the retail industry.”
Arrive has raised $25.1 million to date.
