Your returns could be headed to a landfill. An AI-native software aims to reroute them to nonprofits.

Introducing LiquiDonate, an innovative AI-driven platform designed to address the persistent issue of product returns in retail. Hyaat Chaudhary, the founder of Luxome, which specializes in luxury weighted blankets, initially regarded returns as a minor concern. However, as unsold products accumulated in warehouses, he recognized the potential environmental impact of sending these items to landfills. Chaudhary's early efforts included donating 5,000 blankets to local charities, which inadvertently led to cancellations of new orders as customers sought discounted items from resellers. In his search for a sustainable solution, Chaudhary discovered LiquiDonate, a company leveraging artificial intelligence to coordinate product returns with suitable nonprofit organizations. This system not only simplifies the donation process but also reduces shipping costs by approximately 25% compared to traditional returns, given that nonprofits are often closer to customers than warehouses. The challenge of managing returns is not new; it dates back to the late 19th century with the rise of department stores and mail-order catalogs. Current return rates are strikingly similar to those of the past—around 10% for in-store purchases and 30% for online orders. As the retail landscape continues to expand, the volume of returns has soared, with projections estimating returns to reach $850 billion by 2025. Surprisingly, a significant portion of these products—around 9.5 billion pounds—end up in landfills rather than being resold. Disney Petit, CEO of LiquiDonate, was inspired by her previous experience with food donation programs to create a similar model for retail returns. Launched in 2021, LiquiDonate utilizes AI and computer vision technology to assess the condition of returned items. The platform evaluates factors such as product condition, shipping costs, and nonprofit needs to determine the best course of action, whether it be restocking, resale, donation, or recycling. The software integrates seamlessly into retailers' existing systems, allowing them to efficiently manage returns without the burden of excess costs. Luxome began using LiquiDonate for their returns, ensuring that items are only sent back to their warehouse if they are in sellable condition. This approach not only minimizes waste but also provides a tax receipt for donations, encouraging companies to participate in the initiative. Chaudhary initially harbored concerns about the potential for nonprofits to resell donated items. However, his experience with LiquiDonate has eased these worries, and he has received positive feedback on how Luxome’s products have supported individuals transitioning out of homelessness. Through this partnership, both Luxome and LiquiDonate are paving the way for a more sustainable future where returns contribute to social good rather than waste.