Loveseat Aims to Ease Online Home Goods Return

Austin-based Loveseat, an online marketplace for home goods, has raised $7 million in Series A funding led by Bessemer Venture Partners with participation from notable angel investors Gokul Rajaram, Gabriel Weinberg, and Kal Vepuri.

Online returns have a complicated, emissions-heavy lifecycle that costs the retail industry $32 billion annually, according to Loveseat. Loveseat’s online auction marketplace offers a platform for consumers to buy local returned and overstock home goods at a significantly discounted price.

As much as 30 percent of home goods e-commerce orders are returned and Loveseat’s business model closes this gap, increasing margins by 40 percent, and its focus on buying and selling returned goods locally minimizes the overhead costs and energy endured by large retailers, according to the company.

Loveseat is primarily focused on prioritizing the consumer experience – with thousands of new listings each week, the competitive auction-style model allows users to bid on high-quality items, typically saving 70 percent of the original retail price. Customers are receiving better value and contributing to creating a healthier planet by reducing waste, according to the company.

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