As online shopping continues to surge, the challenge of handling merchandise returns has escalated, leading to significant waste and lost revenue for brands. Among those addressing this issue is Emily Hosie, founder and CEO of Rebelstork, a Toronto-based startup dedicated to transforming how the baby gear industry manages returned and overstock items.
Rebelstork operates an online marketplace offering deep discounts on returned baby products, achieving remarkable growth of 300% year-on-year. The company collaborates with well-known retailers such as Target and brands like BabyBjörn to sell items that are overstocked or returned, helping to mitigate the environmental impact of wasteful returns. According to Hosie, the baby gear sector alone accounted for nearly $16 billion of the $743 billion in merchandise returns reported by the National Retail Federation last year.
Hosie’s background as a merchandising executive at leading off-price retailers, including TJ Maxx and Saks OFF 5th, equipped her with insights into excess inventory management. Her personal experience as a new parent highlighted the need for better solutions in the baby industry, especially for returned goods that remain in excellent condition.
Rebelstork’s approach involves streamlining the return process through advanced technology, enabling brands to track their products from return to resale. The startup manages incoming returns in four warehouses across North America, where items undergo quality checks and are tagged for sale. An AI-powered pricing tool helps ensure competitive pricing on their marketplace, with discounts reaching up to 50%.
The platform categorizes items into three labels: “overstock” for unopened products, “open-box” for opened but unused items, and “quality used” for gently used gear with minor imperfections. This systematic approach not only facilitates better inventory management for brands but also appeals to a growing demographic of environmentally conscious consumers.
Backed by notable investors including Serena Williams and Jay-Z, Rebelstork recently raised $18 million in a Series A funding round led by Maveron. The funding values the company at $60 million, underscoring investor confidence in its mission.
As consumers increasingly prioritize sustainability, particularly among millennials and Gen Z, Rebelstork is poised to capitalize on this trend. “Parents are mindful of the world their children will inherit,” Hosie said, emphasizing the desire for high-quality, eco-friendly options. “If we can provide a quality stroller that’s saved from the landfill, they’re not just buying a product; they’re supporting a movement.”
