There are two certainties in life: death and taxes. But here at Fashionista, we’ve added a third painful chore to the list: returns.
Despite brands doing their best to make the process of sending items back more seamless, it can still be quite the headache for most consumers. And then there’s the pain point of waiting for the refund to hit the bank account.
Lindsay Goffman knows the struggle all too well. It’s why she co-launched Refundly, a new AI-powered app offering refund transparency, to help make the return and refund process easier.
Photo: Courtesy of Refundly
“Refundly started with a really simple frustration, I think most shoppers have felt — you send something back and then spend days or even weeks wondering when your refund will actually hit your card,” she tells Fashionista. “This was particularly painful when I had a big family event and ordered several different dresses to find just the right one. I kept thinking, ‘How is it 2025 and we can track every package in real time, but not our own money coming back?'”
With the help of proprietary AI, Refundly will scan users’ email receipts and automatically track refunds across retailers and cards, so shoppers will know exactly when to expect to get their money back. (The app is free to download and use.)
“At its heart, Refundly solves that stressful ‘refund limbo’ moment that every online shopper experiences,” Goffman explains. “It creates visibility into a part of the customer journey that’s been completely overlooked: what happens after a customer drops off their return.”
Brands and retailers also benefit from this: For one, it will save sellers time and resources by reducing customer service inquiries. But perhaps more importantly, by giving shoppers refund visibility and transparency, retailers gain consumer trust and can increase retention rates.
“Our studies show that 24% of shoppers make a new purchase within days of receiving their refund notification,” Goffman notes. “Refundly helps retailers convert refunds into repeat sales while lowering customer service costs and boosting satisfaction.”
Refundly is hardly the first program to track returns. But where other platforms cater primarily to retailers — tracking shipping labels, drop-offs and logistics — this app prioritizes the consumer experience, per Goffman. Users don’t need to forward receipts or manually enter information; Refundly handles all the work.
“We’re not just simplifying returns; we’re creating a new post-purchase category that benefits both customers who want transparency and retailers who want loyalty,” she says.
Photo: Courtesy of Refundly
Developing Refundly from concept to beta launch took two years. Goffman, her husband Mark, and their technical co-founder Mark Mucchetti worked with a team of engineers to build out the algorithm. Before launching to the public, the trio allowed set and wardrobe departments from major studios, which handle constant returns, to trial the app.
Goffman also spent months and more than 500 Zoom calls onboarding a team of investors and advisors. She landed some of the biggest names in retail, tech, entertainment and business, including experts at Amazon, IBM, Finish Line, Twitter and Rakuten. One of her key advisors is Julie Bornstein, a fashion e-commerce veteran and founder of AI-powered chat-based shopping platform Daydream.
“Every one of our advisors and investors brings something unique to the table. Some have guided us on payments, and others on AI, retail partnerships and return logistics,” Goffman says. “What they all have in common is a real understanding of how universal this problem is. Their insight has helped us make smarter decisions and scale Refundly to meet what we believe will be demand from millions of shoppers across the country.”
And Refundly’s launch couldn’t have come at a better time: The quickly approaching holiday shopping season — during which Adobe predicts a 5.3% year-over-year increase in spending — will be a prime opportunity to put the app to the test.
In the coming months, Goffman hopes to grow Refundly’s services, like providing exclusive and personalized deals, promotions and incentives from trusted retailers once a consumer’s refund is processed.
“At first, people asked if retailers would be upset with us for exposing inefficiencies in the return process, but the opposite has happened,” she shares. “Retailers are eager to work with Refundly to fix these pain points because they want customers to have a great experience. The reality is that the supply chain was never built to handle the massive volume of returns we see today, and Refundly helps bridge that gap.”
Source: Fashionista.com