How Peer-to-Peer Resale Reduced Tom's Trunks Returns by 29%
Key Insights
As Toms Trunks scaled rapidly, they faced a growing problem—rising return rates meant more refunds, increased shipping costs, and a higher environmental impact. They needed a way to retain revenue, cut down on unnecessary shipments, and provide a better customer experience without compromising their commitment to sustainability.
With Frate, Toms Trunks transformed their returns process by implementing full-catalog exchanges and peer-to-peer resale. Now, 58% of returns turn into exchanges instead of refunds, and their Ecodrop resale program enables customers to resell items directly to others, reducing refunds by nearly 30%. This not only cut costs but also accelerated revenue realization while reinforcing their sustainability mission.
Table of Contents
About Tom's Trunks
Challenges
As Toms Trunks scaled immensely, they encountered three key challenges:
- Rising return rates leading to higher refund volumes.
- Increased shipping trips, adding operational costs and environmental impact.
- Limited exchange options, leaving customers without an easy way to swap for another item.
"We were growing quickly, but so were our returns. We needed a way to reduce refunds, lower shipping costs, and provide a better customer experience without compromising our sustainability values."
Tom's Trunks, FounderToms Trunks was facing a common yet costly issue: traditional returns meant refunding customers at a high rate, requiring extra shipments, and increasing their carbon footprint. They wanted to find a solution that encouraged exchanges over refunds, reduced unnecessary shipping, and aligned with their commitment to sustainability.
That’s when they turned to Frate.
Results
"With Frate, we’ve not only reduced refunds but also turned returns into revenue with peer-to-peer exchanges and resale. It’s a game-changer for both our business and sustainability efforts"
Tom's Trunks, FounderToms Trunks converted 58% of returns into exchanges, reduced refunds by nearly 30%, and boosted resale revenue—all while lowering their environmental impact.
By implementing Frate’s full-catalog exchanges and peer-to-peer returns, Toms Trunks transformed their returns process:
- Seamless Exchanges: 58% of returns now result in an exchange instead of a refund. Customers can swap for any item in the catalog—whether a different size, style, or even a more expensive product.
- Peer-to-Peer Resale: Customers are given an eco-friendly return option, holding onto their item for up to 5 days while it’s automatically listed in Toms Trunks’ Ecodrop resale collection at a 10% discount.
- Faster Resale, Less Waste: 40% of customers opt in, and over 90% of listed items sell within three days—drastically cutting returns by nearly 30%.
Not only has this helped Toms Trunks reduce refunds and minimize waste, but it also allows them to recognize revenue faster while lowering costs. By embracing Frate’s innovative returns solutions, they’ve aligned their operational goals with their sustainability mission—turning what was once a challenge into a competitive advantage.
