How Rebag Reduced Order Processing Time by 50%

Learn how Rebag, a luxury resale company that specializes in high-end handbags scaled B2B operations and reduce order processing time by 50%.

Overview

Rebag, a luxury resale company that specializes in high-end handbags and accessories, has rapidly grown into a well-known player in the circular fashion economy. As a business that operates across multiple verticals—both direct-to-consumer and business-to-business (B2B)—Rebag needed a reliable solution to manage cash flow, streamline customer payments, and enable scaling without being bogged down by risk and inefficiency.

“What Resolve does is really help streamline our operations and allow us to scale with less risk. It’s easy for our buyers to use, and for us, the key value is that it simplifies the entire payment process and protects our cash flow.”

Charles Gorra, CEO of Rebag

With increasing demand from their B2B buyers, Rebag sought a way to manage large orders while maintaining smooth financial operations, avoiding the risks associated with customer defaults, and eliminating chargebacks. That’s where Resolve stepped in to help them introduce flexible payment terms, improve their credit approval process, and remove the manual burden of managing payments and returns.

Challenge

Rebag’s B2B business faces several unique challenges. The luxury goods industry often deals with high-ticket items, meaning a single large order could significantly impact cash flow. Rebag’s customers typically wanted longer payment terms—sometimes up to 90 days—but managing risk and ensuring on-time payments became critical issues. Additionally, the company was looking for a way to automate many of the manual steps involved in their payment and returns process.

Before partnering with Resolve, Rebag managed customer terms in-house, which limited their ability to scale efficiently. They had to deal with numerous chargebacks, manually adjust terms for each buyer, and juggle complicated returns policies. Charles Gorra, CEO of Rebag, expressed concerns over cash flow, customer risk, and scaling challenges. He explained that Rebag’s preference was to operate like a credit card company—minimizing customer risk while maintaining a steady cash flow.

The company needed a solution that would allow them to offer flexible payment terms, streamline transactions, reduce manual intervention, and most importantly, help manage risk.

Solution

1. Net Terms: Resolve provided Rebag with a tailored solution to address these key pain points. By offering net terms and managing the entire invoicing and credit approval process, Resolve allowed Rebag to focus on scaling their B2B operations. Resolve's platform removed the risk of chargebacks, automated the payment workflow, and enabled Rebag to offer more competitive terms without jeopardizing their cash flow.

2. Mitigating Credit Risk: One major advantage was Resolve’s credit assessment capabilities. Instead of relying on manual, in-house evaluations, Rebag could use Resolve’s automated system to pre-approve credit lines based on risk profiles and advance rates. Resolve also allowed Rebag to tailor credit terms and dynamic pricing to their customers’ specific needs, streamlining the purchasing process and improving the customer experience.

3. Longer Payment Terms: For larger orders, Resolve’s ability to handle net 60 and net 90 terms was particularly beneficial. According to the Rebag team, the system was easy to use and it fit seamlessly into their existing workflow. Customers could extend payment terms if needed, and Rebag had the flexibility to manage returns, which in turn made the overall cash flow cycle more predictable.

Results

Since implementing Resolve, Rebag has seen tangible improvements in their B2B business. They have successfully scaled their operations, offering flexible payment terms without the added risk of managing customer defaults. Some of the key results include:

• 100% reduction in chargebacks for transactions processed through Resolve.
• 50% improvement in order processing time through automation and eliminating manual invoice handling.
• Ability to handle larger, more frequent orders, with Resolve approving customers for credit lines of up to $250K.
• Streamlined returns process, allowing customers to return unsold items within 60 days, which helped Rebag maintain healthy cash flow and inventory turnover.

Additionally, by automating many aspects of the B2B transaction process, Rebag’s internal teams are less burdened with the administrative work of adjusting invoices, processing returns, or managing collections.