Startup Makes Business Case for Brands to Donate Returns Instead of Trashing Them

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2.18.2026

Quick Facts

U.S. retail returns hit $890 billion in 2024, up 15% from $743 billion in 2023, with 8.4 billion pounds sent to landfills
Good360 has distributed over $25 billion in donated goods from 400+ corporate partners, including 100 million returned items from Amazon
Emerging startups like Loop Returns and (Re)vive are building tech platforms to streamline donation processes for brands

A growing number of startups are building business cases for brands to donate returned merchandise instead of sending it to landfills, targeting the massive $890 billion returns market.

Returns accounted for 17% of all goods sold in 2024, according to the National Retail Federation and Happy Returns. The environmental cost is steep: processing returns contributes 24 million metric tons of CO2 annually, with 8.4 billion pounds of returned goods landing in landfills in 2023.

Good360 leads the established donation space with over $25 billion in distributed goods from 400+ corporate partners. The nonprofit has processed more than 100 million returned items through its Amazon partnership alone, touching 11 million lives.

“Good360 is trusted by more than 400 corporate partners who use Good360 to share their abundance with a network of nonprofits serving communities in need around the world,” the company states. They manage vetting, shipping, and tracking from start to finish.

Technology-focused startups are entering the space with specialized platforms. Loop Returns works with over 3,500 Shopify brands, using its Policy Enforcer tool to identify non-resellable items for donation. The platform emphasizes an exchange-first model to retain revenue while handling donation logistics.

(Re)vive raised $3.5 million in seed funding in 2024 to repair damaged returns before resale. Their software sorts and determines outcomes for returned items in about three minutes, operating on a commission-based model.

Happy Returns operates 350 Return Bars across 63 metro areas, processing returns that grew 800% year-over-year. The company works with brands like Sur La Table and digitally native companies.

The business case extends beyond waste reduction. With 80% of consumers preferring socially conscious brands, donation programs create measurable brand value. Good360 amplifies donations by 50x, meaning a $100 donation distributes $5,000 worth of goods.

Brooklinen exemplifies the model, donating unsellable bedding returns to homeless shelters instead of disposal. The company identifies non-resellable products during exchanges and directs them to donation centers.

“Returns are no longer the end point of a transaction,” said Katherine Cullen, NRF Vice President of Industry and Consumer Insights. “They provide an opportunity for retailers to create a positive experience for customers and can translate to brand loyalty.”