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Hemster integrates tailoring at checkout for partner brands – free to the buyer, paid by the retailer to reduce returns.
ENTRY ANGLES
B2C-to-B2B pivot: convert consumer service to wholesale contracts with retailers · Clothing restoration and resale at scale through retail partnerships · Monetize retail returns problem by restoring and reselling returned items
VERTICALS
CAPABILITIES
Clothing restoration/repair operations at scale, Retail partnerships and B2B contract management, Supply chain management for high-volume returned inventory
Hemster says size doesn't matter anymore – meaning you no longer have to hunt for clothes that fit perfectly off the rack. Buy something approximately right, and Hemster will tailor it to your measurements.
The service is only available when purchasing from Hemster's partner brands, and it can be ordered at checkout. For the buyer, it's free – the retailer foots the bill, since alterations reduce returns and improve conversion.
To use it, customers measure themselves with Hemster's custom ruler, then ship the garment along with their measurements. Return shipping is prepaid. Hemster promises 99.4% accuracy and a turnaround of a few days.
That precision is powered by three components:
- An assembly-line alteration process with built-in quality control
- A measurement methodology designed to minimize human error
- Deep knowledge of how each partner brand's garments are constructed, enabling targeted, accurate modifications
Measurements are stored in the customer's profile, so repeat alterations on similar pieces from the same brand don't require re-measuring.
Hemster recently launched a related B2B service called (Re)vive – a dedicated operation for handling retailer returns. Stores ship back returned inventory, and (Re)vive restores it to sellable condition so it can be moved at full price rather than discounted as damaged goods.
Specialists inspect all incoming items, sort them by restoration complexity and potential value recovery, and log everything in an online catalog that the retailer can review and approve. Skilled technicians then restore approved items using brand-appropriate materials and proper packaging.
Retailers can then choose how to move the restored inventory:
- (Re)vive ships items back to the retailer's warehouse for the retailer to handle independently.
- The retailer sells the items through its own e-commerce channel, and (Re)vive handles fulfillment directly, cutting out the extra logistics step.
- (Re)vive sells the items through its own network of influencer partners and secondhand marketplaces. Minimum sale prices are set by the brand, which can track sales in real time through its (Re)vive dashboard.
The options are listed in order of increasing revenue share for (Re)vive – and decreasing hassle for the retailer.
The startup recently closed a $3.5 million funding round, bringing total investment to $7.5 million.
Hemster's original alteration concept was genuinely useful – but it never really scaled. The company was founded in 2015, and over its entire run under the original model, it raised only $4 million.
The explanation is behavioral: it's simply easier for most shoppers to return an ill-fitting item than to go through the effort of having it altered. Free return policies have thoroughly spoiled buyers.
The result is staggering return rates. On average, 24.4% of clothing sold online gets returned. Among retailers with higher return rates, 26% see more than 30% of items come back – and nearly 60% of those retailers get back 40–50% of everything they sold. That's an industry problem of the first order.
53% of all clothing returns happen because the item simply didn't fit. The garment is fine – it just didn't work for that buyer. But by the time it's traveled back and forth, been tried on, possibly worn, it may no longer be in sellable condition.
That compounds the loss beyond just the cost of free returns and re-stocking. In dollar terms, US retailers lose $38 billion a year to clothing returns.
And not every retailer is set up to recondition and resell returned items. Many liquidate them at a fraction of their value – or throw them out. (Re)vive claims retailers discard $1 billion worth of inventory annually.
(Re)vive has already restored and returned to circulation $23 million worth of goods. In 2024, the company expects to process $56.2 million – meaning it plans to handle more volume this year alone than in all prior years combined.
The pivot lesson here is sharp: don't try to reform consumer habits. If 53% of returns are due to fit issues, Hemster's alteration service could theoretically cut that rate in half – but only if buyers developed the habit of getting clothes altered. They didn't.
Another useful takeaway – one that [came up just recently](/review/tri-sposoba-dlja-masshtabirovanija-na-jetom-novom-rynke) – is that if your startup is running B2C, look for a path to flip it B2B.
That earlier startup started with a consumer review site earning affiliate commissions, then pivoted to producing the same reviews on behalf of brands. Today's (Re)vive does essentially what Hemster does – repairs clothing – but now it does it at wholesale, on long-term B2B contracts with retailers rather than for individual shoppers.
Can your B2C startup do the same thing it's already doing, but under a B2B model?
As for (Re)vive's model itself, the fundamentals hold up well. Returns are a real and costly problem for retailers. It's more economical to pay (Re)vive to restore and resell a returned item at full price than to liquidate it or discard it.
The secondhand clothing market – which encompasses restored apparel – is growing three times faster than the broader apparel market and is projected to reach $350 billion. There's a clear and growing market for what (Re)vive produces.
And because retailers return nearly 25% of sold clothing, they become reliable, high-volume, long-term suppliers of restoration inventory – a better supply channel than most.
Compare that to Croissant ([covered here](/review/reshaem-staruju-problemu-no-vryvaemsja-na-novyj-rynok)), which raised $24 million in its first round by offering shoppers a guaranteed buyback price – valid for 12 months after purchase – on items they buy at partner stores. Croissant then resells those items on secondhand marketplaces. But the buyback model probably captures far less than 25% of purchases. (Re)vive's supply channel may simply be superior.