PayPal Gets into the Returns Game as It Evolves

PayPal acquired a company called Happy Returns, which helps retailers manage their returns – or, as Happy Returns has described itself, “a leading provider of return and logistics solutions for retailers and their customers.” PayPal had invested in the company in 2019.

In a blog post last week, Happy Returns took credit for pioneering the box-free, in-person return process and said hundreds of brands use its returns software and reverse logistics services. It operates a network of over 2,600 locations where customers can return items purchased online, spanning over 1,200 unique metro areas in every state in the continental US.

Making it easier for people to return goods ordered online can help retailers gain information that can help them control returns abuse, though as we’ve noted previously, marketplace sellers don’t have the same ability to identify and potentially block serial returners.

Happy Returns cofounder and CEO David Sobie (who notably did a stint at eBay Motors in the mid-2000s) and co-founder Mark Geller said in Thursday’s post:

“As part of PayPal, Happy Returns will continue offering a best-in-class returns experience to retailers and shoppers. Our technology and platform will help extend PayPal’s commerce platform beyond discovery and payments to the post-purchase experience. With PayPal’s support, we will also focus on improving our platform and expanding our footprint, all with the goal of providing more customers with the most seamless, cost-effective and environmentally friendly way to make and process returns.”

A spokesperson for Happy Returns said the move signals PayPal’s evolution from a pure payments platform to a digital commerce enablement engine. He said merchants were increasingly turning to PayPal to ask how they could use its platform capabilities across their full customer experience and to help them drive incremental sales in the digital era.

“The innovative Happy Returns team will serve as the nucleus for PayPal’s post-purchase offerings to merchants and consumers,” he said. PayPal will be able to guide consumers along their entire commerce journey from discovery (Offers & Deals), payments (PayPal and Venmo online & in-store) to returns and exchanges.

Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.