Olive: Sustainable Beauty & Apparel - Shop Now

Olive Expands Sustainable E-commerce with Beauty Retailer Support

A startup named Olive introduced a novel shopping platform earlier this year. Its primary aim is to enhance the efficiency, convenience, and sustainability of online shopping.

The platform allows customers to consolidate orders from various retailers into a single shipment. This shipment arrives in reusable packaging, eliminating the need for traditional cardboard boxes.

Reusable Packaging and Returns

If a return is necessary, the same reusable packaging is utilized. Alternatively, Olive will arrange for package pickup directly from the customer’s location.

Since its launch in February 2021, Olive has onboarded over 100 retailers, with a strong focus on the fashion industry.

Today, the company is broadening its reach by incorporating support for an additional 25 beauty retailers.

New Beauty Retailer Partnerships

Launch partners for this expansion include prominent brands such as Supergoop!, Kora Organics, and Pai Skincare.

Other participating brands are Erno Laszlo, Jecca Blac, Sahajan, Clark’s Botanicals, NuFace, Purlisse, Cover FX, LYS Beauty, and SiO Beauty.

Peace Out Skincare, Koh Gen Do, Julep Beauty, In Common Beauty, Indie Lee, Glow Recipe, Ursa Major, RMS Beauty, Ceremonia, Sweet Chef, Follain, and BalmLabs are also joining the initiative.

Expanding Beyond Fashion

These new partners complement Olive’s existing roster of apparel and accessory retailers.

Notable names include Adidas, Superga, Rag & Bone, Birdies, Vince, Goop, Khaite, and Veronica Beard.

Enhanced Packaging for Delicate Items

To facilitate this expansion, Olive has developed a new line of reusable packaging.

This packaging incorporates protective features designed for more fragile items.

Previously, Olive offered options like soft garment bags and rigid containers. Now, they are introducing a sustainable alternative to bubble wrap commonly found in shipments.

Olive’s version is integrated into the reusable packaging and can be deflated by the customer for easy return pickup.

Addressing E-commerce Challenges

Olive’s concept is particularly relevant given the surge in e-commerce adoption spurred by the COVID-19 pandemic.

However, this growth has also heightened consumer awareness of environmental concerns related to packaging waste.

The increasing number of delivery vehicles from companies like Amazon, UPS, and FedEx is also becoming a visible issue in urban areas.

While market leaders prioritize delivery speed, Olive focuses on efficiency and sustainability.

(Amazon offers a consolidated delivery option called Amazon Day, but it requires customers to opt-in.)

The Founder's Vision

Olive founder Nate Faust was motivated to create the company after observing a lack of attention from larger e-commerce companies to address market inefficiencies.

Faust previously held leadership positions at Quidsi (Diapers.com and Soap.com, acquired by Amazon), Jet (acquired by Walmart for $3.3 billion), and Walmart.

He ultimately sought to build a business within the e-commerce sector that prioritized social and environmental impact over mere growth.

“I realized I wanted to build something focused on social and environmental impact, not just growth and consumption,” Faust stated.

Recognizing the Problem

Faust recounts an epiphany while taking out the trash and recycling.

He observed the excessive waste generated by the standard e-commerce delivery experience.

He also highlighted that the greatest contributor to carbon emissions in the post-purchase supply chain is the emissions from last-mile deliveries.

Beyond Packaging: Addressing Returns and Convenience

Consumers are increasingly concerned about the hidden issues associated with e-commerce, beyond just packaging waste.

Returns remain a significant inconvenience, prompting Amazon to partner with Kohl’s for in-store return kiosks.

The need to create separate online accounts and repeatedly enter shipping and payment information across different websites is another common frustration.

Olive aims to provide a streamlined, Amazon-like one-stop-shop experience to address these issues.

Olive’s Return and Delivery Process

Olive simplifies returns by allowing customers to place unwanted items back into the reusable packaging.

Customers can then leave the package for pickup or drop it off at their building’s concierge.

Olive collaborates with the USPS and a network of local carriers to serve customers within its current service area, covering approximately 100 million U.S. consumers on both coasts.

Working Towards a Fully Sustainable System

Currently, Olive partners with retailers who ship packages to its warehouses on the East and West Coasts.

There, the items are repackaged into reusable containers for final delivery to customers.

This means Olive is currently responsible for managing the recycling of initial packaging.

However, the company is actively working with its brand partners to have them ship orders directly in the reusable packaging.

This would eliminate the need for repackaging at Olive’s warehouses.

A few retailers have already adopted this practice, and Olive hopes to expand it to all partners.

Business Model and Future Growth

Olive currently operates on an affiliate commission model.

However, the company anticipates that this model may need to evolve as its customer base and partnerships expand.

Currently, around 10,000 consumers have utilized Olive, despite limited marketing and customer acquisition efforts.

Securing Funding for Expansion

Olive is fueling its growth with a recent fundraising round of approximately $15 million.

Investors include Invus, Primary Venture Partners, and SignalFire.