Global-e, a Nasdaq-listed company that helps businesses sell directly to consumers across borders, has acquired Israeli startup ReturnGo. ReturnGo specializes in AI-powered tools for handling product returns and exchanges.
This move is part of Global-e’s effort to improve post-purchase services for its international clients and comes as more companies look for better ways to manage the rising costs and challenges of product returns.
ReturnGo was founded in July 2020 by Aviad Raz, Assi Abramovich, and Eyal Rosenthal to tackle one of online retail’s biggest and most costly problems—product returns.
In the U.S. alone, more than 30% of online purchases are returned, adding up to $428 billion each year, with $309 billion in direct losses. ReturnGo’s AI-powered system helps automate returns and exchanges, making it a popular solution for many retailers.
“This marks an exciting new chapter for ReturnGo,” said CEO and co-founder Aviad Raz. “By joining forces with Global-e, we’re amplifying our mission to make returns smarter, faster, sustainable, and more valuable for merchants and consumers alike.”
The terms of the deal were not disclosed, but Global-e said the acquisition is not expected to have a material impact on its revenue or financial results. Still, the strategic value of the transaction lies in giving Global-e merchants access to ReturnGo’s platform, which already serves over 2,500 global retailers, including Decathlon, Orthofeet, and Dixxon.
“Returns are a key aspect of the online shopping experience, especially in global commerce,” said Nir Debbi, President of Global-e. “This acquisition will enable us to provide our merchants with a better solution to deliver enhanced experiences, improve satisfaction, and strengthen loyalty of their customers.”
ReturnGo’s system uses machine learning to understand why customers return products. It guides users through smart, optimized steps to solve the issue and encourages them to choose exchanges instead of refunds.
Currently, refunds are requested in about 80% of returns. ReturnGo’s platform helps turn this loss-heavy process into one that protects revenue and boosts long-term customer value.
In June 2022, ReturnGo raised $6.5 million in Seed funding. The round was led by TPY Capital, with support from Cresson, Good Company, SeedIL, Aristagroa, and well-known angel investors like Yuval Tal, Dan Adika, Benny Schneider, and Haim Bar-On.
After that, the startup secured an additional $5 million in follow-on funding to grow its business further.
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