Global-e acquires ReturnGo in bid to tackle e-commerce’s costliest pain point

Global-e, the Nasdaq-listed platform enabling cross-border direct-to-consumer e-commerce, has acquired Israeli startup ReturnGo, a specialist in AI-powered return and exchange technology. The deal is part of Global-e’s push to enhance post-purchase solutions for its roster of international merchants and reflects a broader industry shift toward addressing the mounting costs and complexities of product returns.

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ReturnGo was founded in July 2020 by Aviad Raz, Assi Abramovich, and Eyal Rosenthal to solve one of online retail’s most persistent and expensive challenges: product returns. With return rates from e-commerce purchases in the U.S. alone exceeding 30%, and generating $428 billion in merchandise returns annually, $309 billion of which represent direct losses, the startup’s AI-driven approach to automating returns and exchanges has quickly gained traction among retailers.

“This marks an exciting new chapter for ReturnGo,” said CEO and co-founder Aviad Raz. “By joining forces with Global-e, we’re amplifying our mission to make returns smarter, faster, sustainable, and more valuable for merchants and consumers alike.”

The terms of the deal were not disclosed, but Global-e said the acquisition is not expected to have a material impact on its revenue or financial results. Still, the strategic value of the transaction lies in giving Global-e merchants access to ReturnGo’s platform, which already serves over 2,500 global retailers, including Decathlon, Orthofeet, and Dixxon.

“Returns are a key aspect of the online shopping experience, especially in global commerce,” said Nir Debbi, President of Global-e. “This acquisition will enable us to provide our merchants with a better solution to deliver enhanced experiences, improve satisfaction, and strengthen loyalty of their customers.”

ReturnGo’s system uses machine learning to assess the underlying reasons for product returns, guide consumers through optimized resolution flows, and encourage exchanges rather than refunds, currently requested in 80% of returns, according to industry data. Its platform reconstructs a loss-heavy process into one that aims to preserve revenue and increase customer lifetime value.

The startup raised $6.5 million in Seed funding in June 2022 in a round led by TPY Capital, with participation from Cresson, Good Company, SeedIL, Aristagroa, and noted angel investors such as Yuval Tal, Dan Adika, Benny Schneider, and Haim Bar-On. It later secured an additional $5 million in follow-on funding.