Sway Raises $19.5 Million to Enable ‘Customer-Centric’ Delivery and Returns

Sway, formerly known as ReturnMates, has rebranded and raised $19.5 million in a Series A round to build a “customer-centric” delivery and returns platform.

The company will use the new funding to grow its team, enhance its technology and expand its coverage from 20 cities to 25, Sway said in a Thursday (Jan. 11) press release.

“Up until today, delivery and return services have been treated like a commodity,” Eric Wimer, co-founder and CEO of Sway, said in the release. “With Sway, we become an extension of the brand’s experience.”

Sway helps brands redefine their relationship with eCommerce shoppers by delivering shoppers’ packages, picking up their returns and maintaining an open channel with the shopper throughout the process, Wimer said.

The company does so by providing next-day and two-day delivery services, doorstep return and exchange, and two-way SMS support and visibility that is “analogous to rideshare or food delivery,” according to the press release.

With these offerings, Sway said it has achieved an on-time performance of above 99%.

Its brand partners have seen a 66% reduction in lost package rates, a 20% increase in repeat purchases and a 15% drop in per-unit costs of returns, per the release.

The company’s Series A round was led by cross-border growth investment firm 7GC & Co., according to the release.

“Sway is fixing the decades-old returns problem in eCommerce for merchants and customers with a business model that actually makes sense,” Jack Leeney, co-founder and managing partner of 7GC & Co., said in the release. “Merchants reduce leakage, and customers purchase more with a truly seamless two-way supply chain.”

Brands and retailers are implementing smoother return procedures to create a pleasant customer experience, PYMNTS reported on Jan. 4. They are doing so at a time when shoppers return 16.5% of the items they buy online and in stores, according to the National Retail Federation.

In another recent move to meet this demand, shipping and mailing company Pitney Bowes said on Jan. 3 that it has launched a returns drop-off network with PackageHub. This network allows for no-cost, “no-box and no-label returns” at nearly 1,000 locations, the company said.