CCB Magazine

Michelle Reed: "We are the first closed-loop system for existing disposable cartons"

Photo: © sendmepack

Germany and the world are drowning in packaging waste. In Germany alone, 4.2 billion items of packaging are sent out every year. The company sendmepack has developed a solution to this problem and prevents cartons to be thrown away - in order to put them back into circulation. We spoke to co-founder Michelle Reed about the company concept, the overflowing mountains of waste and the vision that is needed.
 

INTERVIEW  Jens Thomas 

CCB Magazine: Hallo Michelle,  you are the co-founder of sendmepack. Before I ask you detailed questions, please introduce yourself briefly. 

Michelle Reed: Hi, I'm Michelle and one of the co-founders of sendmepack, where I'm responsible for marketing, PR and communications. I studied applied media management. I founded sendmepack with my partner Philip. He approached me one day with the glorious idea of a reusable system for shipping boxes. That convinced me straight away. I thought to myself: if nobody else is doing it, we'll just do it! 

CCB Magazine:What is the concept behind sendmepack? 

Michelle Reed:Our goal is to be the industry solution for online retailers to maximize the lifespan of shipping cartons. Just imagine that around 161 billion packets were sent worldwide in 2022. In Germany alone, this amounted to 4.2 billion shipments, an increase of around 83 percent compared to 2011. But up to 90 percent of these boxes are fully functional after the first shipment, which means they don't need to be sorted out at all. This is why we selectively pick up cardboard boxes that would otherwise be recycled - and put them back into circulation together with our customers. This makes us the first recycling system for existing disposable cardboard boxes.

Our aim is to establish an industry solution for online retailers to maximize the service life of shipping cartons. To do this, we specifically collect cardboard boxes that would otherwise be recycled - and bring them back into circulation

CCB Magazine:Do I understand correctly that you are getting ahead of the recycling so that it doesn't get that far in the first place? 

Michelle Reed:Exactly. Of course we have nothing against recycling, quite the opposite. Germany is the world champion in recycling anyway. But the cardboard boxes are recycled after a single use. We want to delay this process for as long as possible by reducing the demand for newly produced cartons - this process is usually called precycling.

CCB Magazine:Can you explain exactly how it works? How do the boxes get to you and how do you get them back into circulation? 

Michelle Reed: We collect the boxes that are available in our webshop from our logistics centers, one of which is in Nuremberg. Other large suppliers also have their packing stations there, which is very practical as we can easily pick up the boxes. Many even turn to us because they no longer need certain sizes, are closing their business or have overproduction - if we didn't buy these boxes, they would go to recycling unused. We sift through the boxes, sort out the ones that can no longer be used, remove a few bits of adhesive from the usable ones here and there - and finally we label them with a sendmepack QR code. They are then ready for dispatch. We have also established a Germany-wide returns network where all sendmepack cartons can be returned. 

Above: The sendmepack warehouses. Below: Michelle Reed. Photos: sendmepack

CCB Magazine:Who orders the boxes, are they individual customers or retailers? 

Michelle Reed: Both. Our boxes are suitable for everyone and all online stores. We currently have 135 different sizes in our program. We deliver them within one to three days.

CCB Magazine: If I've been informed correctly, you're currently missing the big online stores with the highest turnover, which account for around 80 percent of the shipping volume in the e-commerce sector in Germany. 

Michelle Reed: We first had to establish ourselves in the industry and develop a model that could withstand the volume of the large e-commerce providers. After three years on the market, we have now achieved this with the latest development of our business model.

CCB Magazine: And what does that look like? 

Michelle Reed:We have introduced two innovations: Firstly, we are now going directly into closed loops. Secondly, we are working with our customers to produce reusable shipping cartons that are linked to our system, using the most advanced and sustainable digital printing. These steps are the logical consequence of our experience in recent years and the needs of our customers. High-turnover companies in e-commerce often have high return rates, especially in the fashion sector, where 50 to 70 percent of goods are returned. We now enable these retailers to use their boxes multiple times, which saves considerable costs. We develop special labels that are attached to the returned boxes in the returns management system. These boxes can then be refilled and reshipped to the next customer. We also offer a specially designed dashboard that identifies potential CO₂ savings, among other things. We are also continuously working on the optimal design of the boxes. We cooperate with one of the largest corrugated cardboard manufacturers in Europe.

High-turnover companies in e-commerce often have high return rates, especially in the fashion sector, where 50 to 70 percent of goods are returned. We now enable these retailers to use their boxes multiple times, which saves considerable costs

CCB Magazine: How much CO₂ can your system ultimately save? 

Michelle Reed: Around 42 percent of emissions are already saved during one-time reuse. We were able to determine these figures in collaboration with the Technical University of Nuremberg. 

CCB Magazine: How do the customers actually benefit from your solution? Wouldn't it be easier for them to recycle the boxes? 

Michelle Reed: You might think so, but online stores in particular benefit from reusing their cardboard boxes instead of disposing of them for recycling: they reduce their costs for purchasing new cardboard boxes. They can also use the QR code tracking and dashboard to monitor in real time how much CO₂ is being saved. 

CCB Magazine: You are now three years old and have even been on the “Höhle des Löwen”. In the beginning you didn't even have a website, now you are a leading company. What advice would you give to others who want to move forward with a similar idea? 

Michelle Reed:It always takes a good deal of courage to start a business. Especially when you are the first to come up with a new idea. Although this has the advantage of being able to develop the market for yourself, you also make mistakes until success is achieved. And the bigger the idea, the more capital you need, especially in the initial phase. You should therefore always expect higher costs than originally planned. If you traditionally rely on venture capital, take the time to carefully check who is in the portfolio of investors, what added value they offer and how well they fit in with your project. And then: keep at it!

CCB Magazine: How do you finance yourselves? 

Michelle Reed: As a traditional start-up, we have continuously relied on venture capital over the last three years and have gone through several rounds of financing. So far, we have not been able to finance ourselves from our own cash flow, but that is currently changing. Since May of this year, we have had LTG KG and Turtlebox GmbH on board as partners. With these two partners, we are looking forward to long-term and organic growth.

CCB Magazine: Why didn't anyone come up with your idea before? Couldn't it be easily implemented by anyone?

Michelle Reed: That's right, we've been asked this question more than once. Thanks to our technical approach, we offer great added value that cannot simply be implemented by others. Our aim is to simplify the process and act as an intermediary. In this way, we make everyone's work easier and ensure smoother processing.

CCB Magazine: Last question, a new EU regulation stipulates that all packaging must be recyclable from 2030. Is that the end for you, because others will then implement your idea, or is that when you really get into the game? What are your long-term plans? 

Michelle Reed: We are ahead of the curve, because the new EU regulations will mean that everyone will eventually rely on reusable systems - and that also applies to online stores. Our advantage is that we already have a reusable product. That's why we're naturally delighted that the EU is finally catching up. We are facing an exciting time, as we will all have to become more sustainable in the future and look for solutions. We are already pursuing this approach and will continue to do so in the future - with many other online retailers.

Category: Innovation & Vision