RePack

RePack is a reusable packaging service and loyalty program for e-commerce, whereby delivery packages can be conveniently and easily returned, and then reused. It is a concrete solution to reduce packaging trash in e-commerce.

RePack simply replaces single-use delivery packaging in e-commerce and the service has three elements

1. Reusable and returnable packaging

2. Global returns platform

3. Reward system for end-users

RePack packaging is designed mainly with apparel in mind. RePacks are durable, lightweight and made from 100% recyclable material. The bags are designed to flatten when empty to save space, and reduce CO2 emissions by up to 80% compared to single-use packaging.

Our shopping habits are changing and e-commerce market is growing at double figures. 

Between 2009- 2016, Amazon customers have submitted 33 million negative packaging-related comments. 

In 2016, world plastics production totalled 335 million metric tons. The main cause for the increase in plastic production is packaging. Plastic packaging was 42% of all non-fiber plastic produced in 2015, and it made up 52% of plastics thrown away. Half of annual plastic production is destined for a single-use product.

Single-use plastics have become a serious global problem. Every EU resident generates on average 35 kg of plastic packaging waste annually. A study conducted in 2016 shows that of all shoppers, 51% make purchases e-commerce (excluding groceries) and this is increasing. A few years earlier, the US EPA estimated that packaging amounts to 30% of all solid waste.

Every year, Europeans generate 25 million tons of plastic waste, but less than 30% is collected for recycling. Referring to the EU waste hierarchy, the prevention of waste generation, for example through reusable solutions, must take priority over recycling based alternatives. 

We will reduce trash in all the webstores delivering parcels to customers.

RePack packaging service is currently operational in over 50 webstores operating in 15 countries and has recently started US pilots. It has the potential to change how we perceive delivery packaging in e-commerce.

How?

Simply by replacing single-use packaging with returnable and reusable. 

RePack is reuse as a service. 

It has three elements

1. Reusable and returnable packaging 
2. Global returns channels 
3. Data platform 

1. Reusable and returnable packaging

RePack packages are specially designed to flatten when empty for easy returns in letter size and returned via the postal system or to RePack return points. 

Current packaging selection is focused on goods that don't require protection and come in three scalable sizes.

Smallest is 5-litre envelope size with padding, suitable for small items like pair of jeans and a t-shirt. Mediumis 20 litres, suitable for a winter coat or couple of shoe boxes while the largest one can accommodate up to 45 litres of merchandise, for example three boxes of shoes or a large backpack. 

Packages are made from recycled material that is light and durable and packages can be used at least 20 times. Protective, hard-case packaging is being developed.

2. Global returns channels 

Empty packaging is easy to fold and return in letter size via the postal system or to or via additional return points. RePack return is prepaid anywhere in the world, free of charge to the end-user. 

3- Data platform 

The RePack platform handles all data relating to the packaging cycle and includes the necessary proprietary software architecture enabling the service model. Each package has a unique ID that helps manage the entire cycle, including the loyalty program extensions. Each RePack ID is logged and managed in the platform.

Once the empty packaging is returned, the end-user is often rewarded with a voucher to save money on their next purchase. Webstores get their customer back, end- users save money and there is no trash. 

RePack users are rewarded for returning their RePack with a voucher for their next purchase (similar to a refund).

RePack represents a paradigm shift in packaging from single use to reuse. It is reuse as a service.

It is systemic innovation, not just an improvement on existing products.

RePack packaging is not sold to its customer but leased for use. Our two-sided business model creates value from packaging use and increases customer lifetime value for webstores.

RePack packaging  is not just a simple material or structural innovation that but a shift in thinking from linear to circular. Our solution has a significant impact on packaging material requirements and waste creation. Its return and reuse method improves material efficiency, creates local jobs and accelerates the shift to circular economy.

RePack comes from Finland where returnable, recyclable bottles are used by everyone. Up to 98 % of bottles are returned in Finland. It's in our culture and it's a competitive advantage the Nordics enjoy. Reusable, recyclable bottles are not popular in many countries but system has been proved to have significant environmental benefits.

RePack service is composed of three elements. Reusable design packaging, global returns channels and a data management system and a marketplace for webstores and consumers where deposit vouchers can be used at any RePack using store.

Our service is first reusable packaging service globally for consumer ecommerce.

We collect end-user feedback continously and feedback is 99% positive.  Net Promoter Score is on average 79%. RePack end-users don't just like the product, they love it. We see constant shares on social media onn users loving their reusable shipper experience and rave about the online shopping experience.

Packaging delivery volume in Europe has grown 3X in the past 12 months.

In the US we are in Pilot phase. In winter 2018 we piloted with outdoor brand 686 https://www.686.com/pages/repack and start five new pilots in July/August 2019.

In Europe we are scaling and growing and in the US we're looking for a Product-Market-Fit, therefor this program would be a perfect fit for RePack at this stage.

E-commerce is global, so is single-use packaging. That's why RePack is built to be returned globally by post from the beginning. Any RePack can be returned to a postbox, anywhere in the world, and the return fee is prepaid.

In 2019-2020 we build up the US (and Canadian) market for bigger launch in H2/2020.

In the Autumn 2019 we pilot in-store returns with H&M. 

Goal is to reduce the return price of an empty RePack to below manufacturing a new bag and replace single-use packaging in e-commerce deliveries. See screenshot below.

• Long sales cycles and novelty of our innovation. 

Sales cycles to win a new webstore are between 6 and 24 months. We have learned that it is not possible to shorten this. The organizational consequences of working with Repack demand inputs from various functions in a company (sales, marketing, purchasing, logistics, IT), making a swift implementation rare. 

Being the one and only reusable packaging service in the market means there is no such category in the minds of E-commerce professionals. We have RePack users and non-users who have responded to a questionnaire on the obstacles of use. For example, 30 % of consumers in this particular webstore had not even seen or heard about RePack. We need to dig deeper in how we make RePack available at a webstore.

• Packaging options and resources.

Many webstores initially demand fully branded packaging or solutions that are tailored to company specific needs. Being returnable and company specific are two challenging elements. 

Another barrier is IT integration. Each RePack has unique ID and this data is required by us in order to return a voucher once RePack is returned. Integration is implemented in warehouse operations of our customers and in ideal situation our IT system is integrated into Webstore platform and Warehouse Management System.

Current finances are just enough for bootstrapping growth in the clothing segment. This leaves no resources for Digital or Packaging development and puts a hold on Logistical localization as well as marketing activities. 

Sales Cycles : Due to the seasonality of fashion e-commerce, sales cycles are long, averaging at 18 months. We address this by increasing the prospect customer base in our sales funnel with our strengthened sales force in countries, ensuring and accelerating steady flow of new customers implementing RePack service. Also seasonality of online fashion, with busy periods in the Summer and Christmas, resulting in two windows of implementation (Feb-June & Sep-Nov). Thus sales the most active sales period is in February-June and September-October.

Lack of Awareness is a problem for end-users too and can be solved through increased marketing efforts for both e-commerce professionals and consumers.

In order to scale we require sales & marketing personnel and PR to make our solution visible in new markets. Prizes and Awards have worked well so far and our aim is to continue winning things to increase awareness and build commercial interest

Packaging options : This can be countered by investing in innovation together with webstores, material suppliers and logistics operators with added benefit of funding. 

IT integration

Cheaper return cost would remove the need for IT integrations as the cost of using reusable packaging would be less than single-use and all orders would be delivered in RePack, without the need of IT integrations when used as an option.

The question we need to answer is how to build this return network and how to communicate effectively to end-users where empty RePack can be returned.

We have 3 full-time and 6 part-time people.

RePack comes from Finland where returnable, recyclable bottles are used by everyone. Up to 98 % of bottles are returned in Finland. It's in our culture and it's a competitive advantage the Nordics enjoy. Our core operational and R&D team are located in Finland, and the objective is to add local Sales, Marketing and Operational teams.

Besides, in early 2017, the team has grown to 10 in total including Sales & Marketing personnel in France, the Netherlands and Germany.

Our award winning Founding team has 25+ years of entrepreneurial experience in the field of sustainability. We also have proven design know how. Finland is known for design and RePack is the first startup to win Finland's most prestigious design prize, Fennia Prize 2014.

RePack currently has three groups of partners:

• Postal operators provide the logistical backbone. RePack's can already be returned anywhere in the world, free of charge to the end user.

• Packaging manufacturing is outsourced. We have manufacturers in Bulgaria, China, Estonia, Finland and Latvia.

• Our main partners are online retailers and our users - movement creators.

Traditionally e-commerce retailers have bought their packaging whereas with RePack they buy access to a packaging service tailored to meet their specific needs at all times. Participating webstores pay per packaging cycle, which includes the packaging and prepaid empty return, and an additional monthly service fee to cover the reward system, end-user feedback collection, data management and marketing and a commission on voucher use. 

Currently Our business model generates money in the following ways : for the packaging use, webstores pay around 3€ per Repack cycle. The webstore may choose to re-invoice this to the end-user. 

In general, we see both, stores that do not re-invoice at all (All-In-RePack) and stores that re-invoice completely or partially (Optional-RePack). We collect a monthly service fee for voucher distribution, marketplace management to allow cross-use of vouchers, end-user data handling, customer feedback collection and marketing communications. 

A monthly service fee is used instead of a commission to enable voucher cross-use and thus, generating new sales to webshops using RePack.

In the future with cost-effective return channels the cost to return an empty RePack to reuse is targeted at €0.25-0.50 with selling price at €0.75-1.00 per cycle.

RePack is already profitable per cycle. Our gross margin percentage is about 40%. Packaging is a volume business so to reach profitability we need scale. As a rule of thumb currently 5000 cycles per month equal one full-time employee. Currently we are shipping on average 5-6000 per month.

For faster scaling Funding is required to hire more sales people and develop our e-commerce channels. 

Our projected revenues are in a table below

According to our EU wide market research, targeted users of our service are located in the Nordic countries, German speaking countries, Benelux-countries and in the UK and France. However, we’ve recently started a first pilot in the US. Indeed, globally we have identified US and Canada as possible market areas too due to their market size and competitive nature where differentiation and innovative solutions are important. Solve offers a circular economy challenge that fits like a glove to our US market entry. Global awareness of our unique solution needs a strong media coverage. The help of Solve would immediately sky rocket our exposure to a new level.

Solve would contribute to overcome our weaknesses in marketing, R&D and logistics. With Solve’s cross-sector community support, RePack could explore new opportunities within these domains.

Apparel brand owners

Logistics partners (3PL)

(Sustainable) Fashion organisations like Fashion For Good in EU

Manufacturing

Circular Economy orgs like Ellen Macarthur Foundation in the UK

RePack is well-known and scaling in Europe. Based on our discussions with US brand owners the US market is ready for reusable packaging. To find product-market-fit we need like-minded organisations and individuals to co-create the service and make is suitable for US consumers and brand owners. We're close but need support to make a successful market entry to the US market. Solve would be a perfect fit in terms of timing, knowledge and profile to increase the awareness of reusable packaging right this moment in the US.