Delivery

Jet.com co-founder repackages waste-free delivery platform Olive

It’s shifting from a B2C to B2B model, with an option for shoppers to consign their clothes, too.
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Olive

· less than 3 min read

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In February 2021, Jet.com co-founder Nate Faust debuted Olive, a sustainability-focused B2C platform that consolidated orders from 100+ fashion retailers into a reusable tote delivered weekly. So when brand partners suggested Faust try a different model, he didn’t listen—at first.

“The very first brand CEO that I ever spoke to for feedback on the concept…said, ‘Hey, I love it. [Could] you do this for all our orders?’ And I basically said, ‘No’...You should always listen to your customers, and I didn’t do that early on,” Faust told Retail Brew.

At the time, Faust assumed that the suggested change would lead to higher logistics costs, but last summer, he began to rethink things. Now, Olive is officially switching gears, relaunching today as a B2B business that partners with retailers’ fulfillment centers to directly pack, ship, and deliver orders in reusable packaging, like soft-side zipper envelopes and collapsible boxes.

  • While its previous revenue biz received ~10% of each sale, Olive is now paid directly by retailers, matching the cost their typical packaging providers charge.
  • Faust said the shift to B2B, which began last summer, was a “pretty significant rebuild,” including a Shopify app and POS integrations.

Olive delivers to consumers through its own service in the New York metro area and carriers like FedEx, UPS, and the USPS in the rest of the US.

“We didn’t love that we were intercepting that packaging midstream anyway, so it was an easy decision to focus on waste elimination, given that our whole purpose as a company—and our mission—is to reduce the waste from e-commerce,” Faust said.

  • Its partners include Rent the Runway and men’s apparel brand Rhone.

Package deal: Olive also makes $$ through a new offering that allows customers to use Olive’s packaging to send clothes they want to consign.

  • Olive sells the clothes through Linda’s Stuff, a reseller it recently acquired, roughly splitting the revenue with consumers.
  • This helps cover the cost of the packaging returns, and also extends Olive’s mission beyond just “circularity of packaging, but to driving the circularity of goods.”—EC
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