CASE STUDY
Jul 12, 2024
How Clove recovered 500% more returned items with Two Boxes
About Clove
Clove creates sneakers specifically for healthcare workers in need of stylish, protective footwear that can withstand many 12-hour shifts. Since launching in late 2019, they've added hundreds of new designs and had their Clove Classic shoe recognized by the American Podiatric Medical Association for promoting foot health.
The Challenge
As Clove grew, they sought a more efficient method to grade and process their returns
Clove saw their brand awareness skyrocket in the wake of the COVID-19 pandemic, quickly becoming a top choice for healthcare professionals. But as they grew, so too did the number of returns. Items would arrive faster than they could be inspected and restocked, leading to a growing backlog to manage.
Processing delays led to returned products taking up more warehouse space, which increased storage costs. "We paid more in storage than we needed, and then we ended up paying more to correctly process those returns that weren't handled properly the first time," says Ji Hwan Kim, Director of Finance And Operations at Clove.
Ji Hwan and Ellis Kimmell, Clove's Finance and Operations Manager, began to focus their attention on evaluating and improving their processes. They found that items were either graded as perfect or were donated, with no guidelines to establish a middle ground. This resulted in missed opportunities to restock these almost-perfect items that could be resold at a discount.
Clove established a rigid SOP for grading these items, but the time it took to process did not help to reduce their backlog. They ended up switching to a new 3PL partner, who introduced Ji Hwan and Ellis to Two Boxes.
The Solution
Two Boxes empowers Clove's team with faster, more detailed reverse fulfillment
Thanks to Two Boxes, Clove turned their SOP into a simple and standardized process for evaluating returned items. Two Boxes' user-friendly interface guides warehouse workers through each step so they can easily tell what's in good condition and what can't be returned. "Two Boxes clears any doubt about classifying our returns because the software tells you what to do. The products will be processed correctly as long as you're going through the steps that are laid out on the screen based on the SOP," Ellis says.
Clove's 3PL partner can now quickly review return details and gauge each item's condition. Based on these assessments, the system marks each item for different outcomes, such as being repackaged for sale or earmarked for donation. This improved evaluation process led to Clove creating a "Nearly New" sales channel dedicated to slightly used shoes that are still in sellable condition.
Automated reporting and analytics from Two Boxes provide Clove with real-time insights into their returns process. These insights help Ji Hwan and Ellis identify trends so they can continue to improve the workflow over time. Their 3PL can handle higher volumes of returns with greater efficiency, reducing the backlog and lowering storage costs.
Now, Clove has a trusted strategy for managing returned items that can grow alongside their business.
The Results
Clove saves $10k each month thanks to faster returns processing
Finding Two Boxes has helped Clove turn their returns workflow into a source of revenue while clearing out their backlog of unprocessed items in the process.
Clove's improvements to date have been significant for their team:
500% increase in restocked items
$10k saved every month
100% reduction in backlogged returns
Ready to let returns grow your business?
About Clove
Clove creates sneakers specifically for healthcare workers in need of stylish, protective footwear that can withstand many 12-hour shifts. Since launching in late 2019, they've added hundreds of new designs and had their Clove Classic shoe recognized by the American Podiatric Medical Association for promoting foot health.
The Challenge
As Clove grew, they sought a more efficient method to grade and process their returns
Clove saw their brand awareness skyrocket in the wake of the COVID-19 pandemic, quickly becoming a top choice for healthcare professionals. But as they grew, so too did the number of returns. Items would arrive faster than they could be inspected and restocked, leading to a growing backlog to manage.
Processing delays led to returned products taking up more warehouse space, which increased storage costs. "We paid more in storage than we needed, and then we ended up paying more to correctly process those returns that weren't handled properly the first time," says Ji Hwan Kim, Director of Finance And Operations at Clove.
Ji Hwan and Ellis Kimmell, Clove's Finance and Operations Manager, began to focus their attention on evaluating and improving their processes. They found that items were either graded as perfect or were donated, with no guidelines to establish a middle ground. This resulted in missed opportunities to restock these almost-perfect items that could be resold at a discount.
Clove established a rigid SOP for grading these items, but the time it took to process did not help to reduce their backlog. They ended up switching to a new 3PL partner, who introduced Ji Hwan and Ellis to Two Boxes.
The Solution
Two Boxes empowers Clove's team with faster, more detailed reverse fulfillment
Thanks to Two Boxes, Clove turned their SOP into a simple and standardized process for evaluating returned items. Two Boxes' user-friendly interface guides warehouse workers through each step so they can easily tell what's in good condition and what can't be returned. "Two Boxes clears any doubt about classifying our returns because the software tells you what to do. The products will be processed correctly as long as you're going through the steps that are laid out on the screen based on the SOP," Ellis says.
Clove's 3PL partner can now quickly review return details and gauge each item's condition. Based on these assessments, the system marks each item for different outcomes, such as being repackaged for sale or earmarked for donation. This improved evaluation process led to Clove creating a "Nearly New" sales channel dedicated to slightly used shoes that are still in sellable condition.
Automated reporting and analytics from Two Boxes provide Clove with real-time insights into their returns process. These insights help Ji Hwan and Ellis identify trends so they can continue to improve the workflow over time. Their 3PL can handle higher volumes of returns with greater efficiency, reducing the backlog and lowering storage costs.
Now, Clove has a trusted strategy for managing returned items that can grow alongside their business.
The Results
Clove saves $10k each month thanks to faster returns processing
Finding Two Boxes has helped Clove turn their returns workflow into a source of revenue while clearing out their backlog of unprocessed items in the process.
Clove's improvements to date have been significant for their team:
500% increase in restocked items
$10k saved every month
100% reduction in backlogged returns
Ready to let returns grow your business?
Impact Summary
Increase in restocked items
Reduction in backlogged returns
Before Two Boxes, we were returning less than 10% of all returns into inventory in any sellable condition. Now, we are recovering more than 60% of the returned inventory, which is significant in terms of total units brought back.
Ji Hwan Kim
Director of Finance And Operations at Clove
Ready to supercharge your returns?
At Two Boxes, our mission is to make returns an asset instead of a liability. We’re proud to partner with 3PLs like Rocket Shippers to supercharge their return operations and benefit their team, customers, and the planet. If you’d like to make returns a strength for your business, reach out to us today!
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Returns are hard.
Two Boxes makes
them easy.
Returns are hard.
Two Boxes makes
them easy.