How Caraway reduced returns fraud with Two Boxes

See how this renowned kitchenware brand bolstered its returns workflow to verify product quality and fight fraud. 

• 55% VAS success rate

• +3K items returned to stock

“Two Boxes has helped us regain control over our returns, delivering efficiency, visibility, and reliability all in one unified platform.” ­— Katya Lotzof, Associate Director of Logistics and Fulfillment Operations at Caraway 

About Caraway

Caraway is on a mission to craft well-designed, non-toxic ceramic kitchenware that thoughtfully raises the standards of what we cook with. Since 2019, Caraway has amassed a dedicated following with over 70k five-star reviews and partnerships with the likes of Crate & Barrel, Nordstrom, and Target.

The Challenge

Caraway needed a robust returns process to combat fraud and get products back on the shelves

Like many digitally native consumer goods brands, Caraway relies on a 3PL partner for fulfillment and returns processing. While its 3PL's fulfillment capabilities were strong, Caraway's established SOPs for returns processing needed a refresh.

Existing SOPs often required warehouse workers to manually analyze products and upload multiple photos and tracking numbers to different systems — just to process a single return. Not only was this process cumbersome, but it was also incredibly time-consuming, resulting in a significant returns backlog. With so many judgment calls to make in such quick succession, workers didn't always have time to precisely characterize each return's condition.

As a result of this manually intensive returns process, the Caraway team found itself preemptively validating low-quality and, in some cases, fraudulent returns. To ensure only the highest-quality (and legitimate) SKUs returned to shelves, Caraway’s Associate Director of Logistics and Fulfillment Operations, Katya Lotzof, sought a solution that could simplify her returns workflow and eliminate the risk of fraud.

Fortunately, when Caraway’s returns processing partner introduced her to Two Boxes, and Katya knew she’d found the ideal solution to her dilemma.

“Our team used to get hit with a lot of returns fraud with no real way to defend ourselves. We knew we needed a more precise solution for validating returns and a way to cut down on the time it takes to process them.”

The Solution

Two Boxes helps Caraway transform returns processing from a burden to a competitive advantage

With Two Boxes’ returns processing software, the quality of Caraway’s returned stock is no longer at the mercy of manual processes and 3PL discretion. Warehouse workers can simply scan the returned item's label, and Two Boxes’ software will walk them through a streamlined grading process complete with reference images and suggested next steps. Gone are the days of manual uploads and endless sifting through tracking numbers.

This streamlined system has also given Caraway enhanced visibility into the returns process, enabling Katya’s team to exert more control over which returns are validated and restored to active stock. Now that they can easily keep tabs on each SKU’s status, the Caraway team avoids accepting low-quality or fraudulent returns and prioritizes the resale of higher ROI returns. Plus, whenever they want to see how much revenue they’re recouping from a certain SKU, they can conveniently track it through Two Boxes’ user-friendly dashboard.

Empowered by a more efficient and transparent returns process, Caraway has even been able to capitalize on a surprising new opportunity: the reselling of some SKUs secondhand. Since Two Boxes makes it easy to inspect and label returns, workers now have the bandwidth to evaluate SKUs more attentively and determine which qualify for the secondhand market.

Katya says this new workflow has not only introduced an element of much-needed objectivity to a previously subjective system but also improved the employee experience at their warehouses. Now that workers have a set of quick, clear-cut steps to follow for each return, their days are less frustrating, and the overall working culture has flourished.

“Two Boxes gives us full visibility into every step of the returns process. Whether we want to see when someone’s trying to pull a fast one or figure out how much revenue we’re generating by each returned SKU, they have the answer.”

The Results

Caraway slashed return processing times

With Two Boxes at her side, Katya transformed Caraway's returns processing into a scalable workflow that cements product quality and deters fraudulent exchanges.

Katya and her team can’t wait to keep iterating with Two Boxes — in fact, they now recommend the tool to every 3PL they partner with. Since seeing what it can do for them, they’re excited to collaborate with the Two Boxes team to make the returns workflow even more efficient as new pain points arise.

“We love working with the Two Boxes team — they’re incredibly thoughtful and attentive to our input. Whatever questions we have for them or new solutions we’re looking for, we know they’re always an open door for feedback.” 

Ready to let returns grow your business?

At Two Boxes, we make returns an asset instead of a liability. Book a demo today to get started!