October 30, 2025
DragonImages/Depositphotos.com
Has Refundly Solved Online Return Refund Transparency?
Promising to bring visibility to the online refund process, Refundly is a new app which uses AI to track and manage online returns across all U.S. retailers — and alerts users the moment their refund arrives.
The app was co-founded by Lindsay Goffman, a Hollywood producer and busy mom who found herself manually tracking refunds across spreadsheets, only to discover missing refunds.
“Refundly started with a really simple frustration, I think most shoppers have felt — you send something back and then spend days or even weeks wondering when your refund will actually hit your card,” she told Fashionista. “This was particularly painful when I had a big family event and ordered several different dresses to find just the right one. I kept thinking, ‘How is it 2025 and we can track every package in real time, but not our own money coming back?’”
The app employs proprietary AI that connects to a user’s Gmail address — and up to two credit cards — to scan e-mail receipts, identify returns, and track each step, from initiation to reimbursement. A single dashboard shows the status of every return, with delays or other issues flagged. Refundly states on its website, “In transit? Delivered? Lost in space? We can keep tabs on a package’s journey back to the retailer.”
Uses are notified once the refund hits their bank account.
Refundly Aims To Simplify Returns, Consolidating Information Regarding Refunds
Mark Mucchetti, Refundly’s CTO who formerly worked at BeautyCounter and Meta, said in a statement, “The scale and complexity of tracking returns across hundreds of retailers makes manual monitoring impossible, creating an ideal application for AI automation.”
Developed over the last two years, the app’s investors and advisors include Sam Ng, director of engineering for Amazon AI, as well as executives from AI-powered chat-based shopping platform Daydream, PayPal, IBM and several other tech powerhouses and upstarts.
For consumers, the app’s benefit is saving time as well as the anxiety over not knowing whether a refund is in limbo. Refundly’s own analysis of refund patterns across 120 major online retailers found a 7.5% error rate, such as incorrect fees or missing refunds.
The app is free for consumers to download and use. Goffman told RetailWire that similar to Rocket Money, an app that negotiate bills and manage subscriptions on behalf of users, Refundly takes a small fee from collections when it resolves a discrepancy for users.
Refundly is also introducing a Plus subscription plan, one that offers the ability to track a larger volume of returns, e-mail customer support, and the ability to connect up to six credit cards. Early adopters have included professional stylists, event planners, wedding planners, studios, influencers, and others who frequently buy and return items.
For retailers, the app promises to reduce customer service inquiries and improve satisfaction. Refundly’s studies show that 24% of shoppers make a new purchase within days of receiving their refund notification.
In the coming months, Refundly will be introducing exclusive, personalized promotions once refunds are processed. Refundly will earn a fee as those promotions are converted to purchases.
“Retailers have been really happy that there’s a solution,” Mark Goffman, co-founder and Lindsay’s spouse, told Forbes. “We’re turning refunds into a brandable marketing opportunity, because the moment you get your money back from a retailer, and we’re letting you know, ‘Hey, you just got $138 back from Nordstrom,’ you’re really happy with Nordstrom.”
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Frank Margolis
Executive Director, Growth Marketing & Business Development, Toshiba Global Commerce Solutions
Kai Clarke
CEO, President- American Retail Consultants
Shep Hyken
Chief Amazement Officer, Shepard Presentations, LLC
Recent Discussions
Discussion Questions
Do you see benefits for online consumers and retailers in the way Refundly tracks and manages online returns refunds?
Would an app such as Refundly likely open up a meaningful post-purchase marketing opportunity for retailers?
Poll
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I think this is a helpful solution, especially during busy times of the year when people may be making a lot of returns. Unlike store returns, which are usually immediate, online returns are a bit of a process and most people don’t want to have to keep checking on the status.
I see tangible benefits for both online consumers and retailers in the way Refundly handles return‐refund tracking. For consumers, this app addresses a longstanding pain point: it gives visibility into the post-purchase refund journey, reducing the user friction of wondering “did I actually get my money back?” This helps build trust in the online shopping experience. From the retailer’s standpoint, fewer “Where’s my refund?” calls and complaints can translate into lower customer service costs, higher satisfaction scores, and potentially fewer lost customers.
Regarding whether the app presents a meaningful post-purchase marketing opportunity for retailers: yes — it absolutely could. Refundly’s model enables personalized promotions after a refund is processed, turning what would normally be a transactional, friction-filled moment into a retention and re-engagement opportunity. This aligns well with the idea of “the refund moment” as a trigger to drive re-purchase intent and loyalty rather than simply an exit point.
In summary, for retailers prepared to integrate and leverage this kind of tool, it’s a low-hanging post-purchase lever that can enhance experience and retention. However, success depends on seamless integration, ensuring the increased transparency doesn’t just expose friction but uses it as a strategic moment for connection.
Unfortunately this is a necessary solution, when the lack of transparency in the supply chain should’ve been solved by now.
They’ve solved a problem that (IMHO) doesn’t exist (and in giving the already cluttered world another app, perhaps actually created one.)
Anything that makes it easier for customers to make a return is a good thing. Often, it’s hassle-free returns that give a retailer a competitive advantage.
This is an alternative. Being able to know the status of your return can help, especially when it is communicated well. The real question is how important is this for the consumer to download and use a 3rd party app?
a 3rd party app… that will be highly involved in using your data & tracking your data. One more way for identity theft/breaches? (Macy’s past data breach alone, necessitated a change of my own credit card)
It’s a new revenue stream that capitalizes on companies that do not want to fix the root issues. Easier to upgrade reverse logistics that already exist?
Helpful for the example given, of a large event/wedding or even a home business where you have to buy lots of supplies.
Corporate entities I’m guessing would need a contract with the app for data safety.
But to incentivize/gamify average shoppers to make more returns? (then what, add tokens for environmental decarbonization).
Refundly is proof-positive that both retailers and consumers find returns/refunds painful and time-consuming. Although the context is associated with a negative experience, the app creates opportunities for cognitive reappraisal or reframing.
Does it take burden off retailers from fixing their own issues?
Just went through a return issue with a retailer that took 7 weeks to get the money back. Logistics & communication were the retailer’s problem.
1) Tracking reliability was poor & route was convoluted. (tracking stopped for a week, before I asked for the restart)
2) Retailer communication was boilerplate response, not individual.
Never once, did I think I needed a separate app to do it. Instead, I gave the retailer (Bluebella) as a sales lead to reverse logistics companies as a potential client. And tried to track down their own r.l. company… to make know customers were not happy.
Hopefully retailers care enough to recognize & solve their own pain points created. Millions of service apps have launched since the dot.com era, not all are meant to be permanent,
While Refundly offers a useful service, the transparency it provides should be a mandatory, built-in feature from every retailer, negating the need for an external app. Furthermore, granting a third-party application deep access to my email and credit card data significantly increases my cybersecurity exposure, a risk consumers shouldn’t have to take for basic refund visibility.
My gut feeling too… shifting responsibility to the customer, and adding data & identity danger.
A 3rd party encouraging (making easy, incentivizing, profiting off) returns. The opposite of retailers trying to discourage returns (better size charts, product page clarity, shorter return windows, cost for return postage).
100% agree to your point. Best way is to find a solution to problem beforehand and not when problem happened.
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I think this is a helpful solution, especially during busy times of the year when people may be making a lot of returns. Unlike store returns, which are usually immediate, online returns are a bit of a process and most people don’t want to have to keep checking on the status.
I see tangible benefits for both online consumers and retailers in the way Refundly handles return‐refund tracking. For consumers, this app addresses a longstanding pain point: it gives visibility into the post-purchase refund journey, reducing the user friction of wondering “did I actually get my money back?” This helps build trust in the online shopping experience. From the retailer’s standpoint, fewer “Where’s my refund?” calls and complaints can translate into lower customer service costs, higher satisfaction scores, and potentially fewer lost customers.
Regarding whether the app presents a meaningful post-purchase marketing opportunity for retailers: yes — it absolutely could. Refundly’s model enables personalized promotions after a refund is processed, turning what would normally be a transactional, friction-filled moment into a retention and re-engagement opportunity. This aligns well with the idea of “the refund moment” as a trigger to drive re-purchase intent and loyalty rather than simply an exit point.
In summary, for retailers prepared to integrate and leverage this kind of tool, it’s a low-hanging post-purchase lever that can enhance experience and retention. However, success depends on seamless integration, ensuring the increased transparency doesn’t just expose friction but uses it as a strategic moment for connection.
Unfortunately this is a necessary solution, when the lack of transparency in the supply chain should’ve been solved by now.
They’ve solved a problem that (IMHO) doesn’t exist (and in giving the already cluttered world another app, perhaps actually created one.)
Anything that makes it easier for customers to make a return is a good thing. Often, it’s hassle-free returns that give a retailer a competitive advantage.
This is an alternative. Being able to know the status of your return can help, especially when it is communicated well. The real question is how important is this for the consumer to download and use a 3rd party app?
a 3rd party app… that will be highly involved in using your data & tracking your data. One more way for identity theft/breaches? (Macy’s past data breach alone, necessitated a change of my own credit card)
It’s a new revenue stream that capitalizes on companies that do not want to fix the root issues. Easier to upgrade reverse logistics that already exist?
Helpful for the example given, of a large event/wedding or even a home business where you have to buy lots of supplies.
Corporate entities I’m guessing would need a contract with the app for data safety.
But to incentivize/gamify average shoppers to make more returns? (then what, add tokens for environmental decarbonization).
Refundly is proof-positive that both retailers and consumers find returns/refunds painful and time-consuming. Although the context is associated with a negative experience, the app creates opportunities for cognitive reappraisal or reframing.
Does it take burden off retailers from fixing their own issues?
Just went through a return issue with a retailer that took 7 weeks to get the money back. Logistics & communication were the retailer’s problem.
1) Tracking reliability was poor & route was convoluted. (tracking stopped for a week, before I asked for the restart)
2) Retailer communication was boilerplate response, not individual.
Never once, did I think I needed a separate app to do it. Instead, I gave the retailer (Bluebella) as a sales lead to reverse logistics companies as a potential client. And tried to track down their own r.l. company… to make know customers were not happy.
Hopefully retailers care enough to recognize & solve their own pain points created. Millions of service apps have launched since the dot.com era, not all are meant to be permanent,
While Refundly offers a useful service, the transparency it provides should be a mandatory, built-in feature from every retailer, negating the need for an external app. Furthermore, granting a third-party application deep access to my email and credit card data significantly increases my cybersecurity exposure, a risk consumers shouldn’t have to take for basic refund visibility.
My gut feeling too… shifting responsibility to the customer, and adding data & identity danger.
A 3rd party encouraging (making easy, incentivizing, profiting off) returns. The opposite of retailers trying to discourage returns (better size charts, product page clarity, shorter return windows, cost for return postage).
100% agree to your point. Best way is to find a solution to problem beforehand and not when problem happened.