.png)
Returns are often treated like an afterthought, a logistical headache brands are forced to deal with, but rarely optimize. What if the returns process wasn’t just a cost to contain… but a strategic lever to unlock new revenue, boost loyalty, and strengthen sustainability?
That’s exactly what we explored in our recent webinar with Pact and Fillogic.
When Pact suddenly found themselves with over 100,000 returned units stuck in limbo—stranded across borders, warehouses, and returns hubs—they knew they couldn’t just patch the problem. The cost to the business was mounting, and there was no clear path to recover that inventory at scale.
Instead of scrambling for a short-term fix, they partnered with Treet and Fillogic to build a smarter, resale-integrated returns process—one that could not only clear the backlog, but actually drive profit and retention. Within weeks, the system was live. Nearly 2,000 units sold in the first two weeks, and the brand unlocked a powerful new engine for loyalty and margin recovery.
The program combines a branded resale storefront with real-time returns routing. Customers can buy second-quality or excess inventory directly from Pact, and even list their own items peer-to-peer, all powered by Treet’s resale platform and Fillogic’s reverse logistics infrastructure.
Here are five key takeaways from how this partnership turned a costly operational headache into a profitable, scalable solution.
1. Returns Are One of the Most Overlooked Margin Opportunities in Ecommerce
Most ecommerce teams obsess over optimizing outbound fulfillment—how fast, how cheap, how flawless. On the reverse-logistics side, returns are often ignored until they pile up, eat warehouse space, and chip away at margins. The truth? Returns are one of the few levers in ecommerce where efficiency can directly lead to revenue recovery.
With the right systems in place, quality returns can be quickly triaged, resold, or restocked through a branded resale channel, before they become liabilities. That means more inventory recovered, fewer write-offs, and a stronger bottom line.
“Returns were stacking up post-holiday, and we didn’t really have a way to process them and turn them back into cash… that was chewing into our wallet pretty quickly.”
— Drew Cook, Pact
2. Resale Isn’t Just About Sustainability—It’s a Smart Financial Strategy
Resale often enters the conversation through the lens of sustainability, but when implemented well, it's good for the planet and better for your P&L.
For brands like Pact, resale creates a direct margin recovery channel for returned or excess inventory. Instead of liquidating for pennies on the dollar, they’re selling those items to customers who are already loyal to the brand. Even better? Launching with returns and excess inventory allowed Pact to open the door for Peer-to-peer resale. Most of those customers are choosing store credit over cash, creating a seamless loop of retention and repeat purchase behavior.
“It makes sense logistically, it makes sense operationally, and it makes sense financially.”
— Drew Cook, Pact
3. Crisis Creates Clarity and Opens the Door to Innovation
When Pact suddenly couldn’t fulfill from their Mexico-based 3PL due to a cross-border policy shift, they were stuck with over 100,000 units of returned inventory. It would’ve been easy to scramble for a temporary fix. Instead, they zoomed out—and reimagined how returns could be handled entirely.
Rather than bog down their new warehouse partner with reverse logistics, they brought in Fillogic and Treet to create a dedicated, tech-integrated returns recovery solution. That decision turned a short-term crisis into a long-term operational win. Returns became inventory to monetize not just a pain to manage.
Today, Fillogic is restoring 90% of returned units directly into inventory, with the remaining 10% funneled through PACT’s branded resale site via Treet. That means fewer write-offs, faster inventory turns, and significantly higher recovery value across the board.
“We decided we needed to figure something out… maybe there’s a partner who can really specialize in helping us process our returns and help us figure out a way to monetize those.”
— Drew Cook, Pact
4. Speed Comes from Specialization and the Right Partnerships
The key to solving complex problems quickly isn’t doing everything yourself, but partnering with the right people. In under 60 days, Pact went from a returns crisis to a live, integrated returns + resale program. That speed was only possible because each partner focused on their strength.
Fillogic handles the reverse logistics, routing and grading inventory at the edge, while Treet powers the branded resale site and manages the customer-facing experience. Pact focused on alignment, operations, and rollout. The result? A system that works can scale with the brand without heavy internal lift.
“We started this in the March, absorbed all the inventory and got live. So anybody that's on the phone saying, oh, well, it must have taken a year—BS. We got it live very, very quickly because of the partnerships.”
— Bill Thayer, Fillogic
5. The Loyalty Flywheel Is Real, And It’s Highly Profitable
When a customer sells their old product back to your brand and gets credit to buy again, you’re not just recovering value, you’re increasing it. That’s what Pact has seen in the early stages of their resale program: over 75% of sellers are choosing Pact credit over cash. That credit keeps them inside the ecosystem and boosts LTV.
Even better? Resale buyers are proving to be highly engaged customers themselves. And because the resale site is integrated with the brand’s identity and standards, it strengthens customer trust. In a world where acquisition costs are sky-high, this kind of loyalty loop is a cheat code.
“It starts to build this flywheel where customers buy new Pact products… at the end of life, they sell them… they get Pact cash… they come back and buy again.”
— Drew Cook, Pact
Final Thought
Returns are inevitable. Margin loss isn’t. As Bill from Fillogic so eloquently put it during the webinar:
“The only thing true in life is death, taxes, and returns.”
Bill Thayer, Fillogic
By rethinking reverse logistics and investing in resale infrastructure, brands can recover revenue, unlock loyalty, and meet sustainability goals—without compromise.
If you’re still treating returns as an afterthought, it might be time to reframe them—as your next big revenue channel.
👉 Ready to make the switch? Lets Talk.
