Closing the Loop: Emily Hosie of Rebelstork On Embracing the Circular Economy
An Interview With Russell McLeod
Corporate Education & Collaboration: There are so many benefits to collaborations and partnerships. In our case, the more brand partnerships we bring onboard, the more products we can divert from landfills. The more partnerships = the greater our impact. Collaboration brings forward new opportunities and ideas you may not have otherwise developed on your own.
In our current economic model, we see a lot of waste and inefficiency. Products are designed, used, and then discarded, often creating environmental and economic burdens. The circular economy offers a solution by designing out waste and keeping materials in use for as long as possible. This shift can lead to innovative business models, sustainability, and economic resilience. How are companies making this transition, and what can others learn from their journey? I had the pleasure of interviewing Emily Hosie.
Rebelstork, the largest liquidation and returns recommerce platform for baby gear in North America, is founded and led by Emily Hosie, who has a track record of effecting industry shifting growth and success in the retail space. After spending her earlier career as a senior executive for some of the top retailers and off-price businesses in the retail industry, Emily turned her sights to a new industry in need of transformation — returns. In 2020, Emily founded the Certified B Corporation, Rebelstork, and in just four years, has become a driving force behind returns recommerce.
Thank you so much for doing this with us! Our readers would love to get to know you a bit better. Can you tell us your “Origin Story”? Can you tell us the story of how you grew up?
I grew up in Oakville, Ontario and later moved to Kingston where I attended Queens University. It was there that I have my first memory of wanting to be in retail. After volunteering for a charity fashion show as a stylist I fell in love with it. I thought if I could spend this much unpaid time interested in something, then this was a path I should follow. I had also always wanted to be my own boss, but I knew that wasn’t possible without first working under skilled leaders to learn how to run a business. I made a list of companies I wanted to work for and mentors I wanted to learn from. I spent the first several years of my career working in New York at the best off-price retailers in the world as VP of Merchandising for the Saks Fifth Avenue, Off Fifth. I later returned to Canada to serve as VP of Merchandising for the TJX Companies. Having spent a large part of my career in off-price retail, I became an expert in the retail vertical.
Could you share with us your journey and the pivotal moments that led you to focus on the circular economy within your business?
Because off-price retail was such a big part of my career, when I was pregnant with my first child, I found myself searching for the TJ Maxx of baby gear and couldn’t find it. As I started digging into where the returns in the baby gear industry were going and where the excess inventory was being sold, no one seemed to have an answer. Returns currently cost the total US retail industry more than $800 billion annually and the baby gear industry specifically, is close to $16 billion each year. It was shocking to think that millions of pieces of brand new, simply returned, never used open box items were going to landfills. It was at that moment when I thought to myself, if no one else was looking for a better, more sustainable option in this industry, then I would. Four years later, here we are, driving the circular economy, growing rapidly and making an impact.
What experiences in your background have shaped your understanding and commitment to sustainable business practices?
When I set out to build Rebelstork, I knew first and foremost that I wanted to build a better business, one that was transparent and different from what existed at the time in the baby gear space. I wanted to create positive change that would benefit retailers, brands, parents and the environment. I wanted to create a purpose and value-driven business, and I also wanted to have guidance along the way to help me do it. I knew from the get-go that I wanted to achieve certified B Corporation status, which would become our company’s north star. Following the guidelines and practices of B Corporation status helps guide all our practices and commitments as a business.
Can you tell us about a significant challenge you’ve faced in your career that has influenced your approach to business and sustainability?
When we first started Rebelstork, we were disrupting a legacy industry — baby gear. We knew that the company could only thrive if we were able to influence brands and retailers to change their legacy operations and practices and adopt new ways of operating to partner with us. We needed to prove to them that returns recommerce in this industry was a positive change to invest in. Our vision was to build the technology to process mass volumes of retailer and brand overstock and open box returns, coupled with a marketplace where consumers could shop at a discount. This would produce a win-win situation where retailers could divert millions of pounds from landfills annually while generating a new revenue stream for their business. Over the last four years we’ve influenced over 2500 brands and retailers to open their minds and positively change their supply chain operations to a planet friendly returns recommerce model through our partnership.
How has your company evolved to integrate circular economy principles, and what role have you played in this transformation?
Rebelstork was built around the concept of the circular economy. As the largest returns recommerce marketplace for baby gear in North America, it’s our core business. I’m very proud that my team and I have worked relentlessly over the last several years to build a platform that helps brands and retailers participate in the circular economy using our proprietary technology.
We developed the technology required to address the challenge of “reverse logistics,” for companies which refers to the complex processes involved in managing returned and overstocked inventory. Alongside that, we developed a unique deal batch technology system that assigns a unique identifier to each product we sell to give the brands and retailers we work with complete transparency throughout the entire workflow. We are working to make it as seamless as possible for a brand or retail partner to adopt a returns recommerce stream within their businesses.
What does ‘closing the loop’ in the circular economy mean to you, and why is it important for businesses today?
In my opinion closing the loop in the circular economy means that we are working toward no waste, saving goods from ending up in landfills and giving them new life. In retail, this mission is critical. The returns crisis is at a rapidly growing all-time high and returns recommerce is a solution. On average, 9.5 billion pounds of returns end up in landfills. Consider that those numbers continue to rise. Rebelstork is saving an estimated 12 million pounds of quality product from ending up landfills annually and we are growing rapidly. The recommerce market is projected to reach a value of $245 billion by 2025 and Rebelstork is proudly leading this for the baby gear space.
Additionally, consumer interests have changed. Consumers are interested in sustainable brands and are more likely to shop from a company whose sustainable mission aligns with their values.
Can you identify the 2–3 critical mistakes companies often make when transitioning to a circular economy model?
I can share two examples of potential limitations companies may need to overcome in order to successfully transition to the circular economy. The first is technological limitations. In legacy industries, retail included, companies are not currently set up operationally with technology and systems to enable a circular economy model. Partnering with companies who have developed the technology needed to power your company and shift operations will help for an easier transition.
Secondly is corporate education and buy in. Ensuring that leaders and employees across an organization are educated on why the circular economy is a viable option for them and the impact that it can make to their business and their consumers is key. This transition for an organization can be a sizable one and each player needs to understand it, the role they play in it, be open to driving change and believe in the mission for it to be successful.
What innovative strategies has your company implemented to reduce waste and promote resource efficiency?
We’ve been committed to continuously developing technologies to help parents across North America receive the best value. We developed the baby gear industry’s first and only AI-powered pricing technology, Rebelstork’s REV™ Pricing Tool. Rebelstork’s technology generates real-time resale value on most baby gear models. Expecting and new parents can trust that they are always receiving the best value on the open box products being shopped on Rebelstork.
From a resource efficiency standpoint, we built our own custom internal Ingestor system technology which allows us to ingest baby gear returns and liquidation from mass retailers by the truckload so that we can track and list thousands of unique skus for resale every single day. Rebelstork has since increased efficiency and the number of skus processed daily by +200%.
The system also sorts and conducts the initial quality inspection of every item that comes through their processing facilities. Because of this technology, parents across North America can trust they are always receiving the most credible baby gear and their retailer partners can divert baby gear from landfills.
What role do partnerships and collaborations play in your efforts to close the loop and create a more sustainable business model?
Partnerships with baby gear brands and mass retailers are vital to us. To date, Rebelstork has partnered with over 2,500 brands and retailers across +45 categories. These brands and retailers have partnered with us to help divert their returns and overstock items from ending up in landfills and instead be resold through our returns recommerce marketplace.
In partnering with Rebelstork, our partners have been able to create new revenue streams and mitigate return costs. And it’s not just businesses that are benefiting — consumers are, too. More and more expecting and new parents are buying open box goods at a discount. They feel confident because every item we resell is quality-checked through our rigorous “Rebby Pinky Promise” process.
What are your “5 Things You Need To Create a Successful Circular Economy Based Business”?
1 . Consumer Education & Awareness: We are seeing that Millenials and Gen Z are more interested in sustainability and if a company’s products or services have a positive impact on the environment or society. 42% of millennials have deepened a business relationship because they perceive a company’s products or services to have a positive impact on society and the environment. These demographics represent our current and future consumers and it’s important to put focus on their interests.
2 . Reverse Logistics Technology: To be part of the circular economy, developing an understanding of reverse logistics and technology is essential.
3 . Corporate Responsibility and Regulatory Compliance: Understanding best practices and sustainable measures is complicated. Put the effort in here, whether you look at B Corporation Status or other forms of compliance to help guide you.
4 . Corporate Education & Collaboration: There are so many benefits to collaborations and partnerships. In our case, the more brand partnerships we bring onboard, the more products we can divert from landfills. The more partnerships = the greater our impact. Collaboration brings forward new opportunities and ideas you may not have otherwise developed on your own.
5. Innovation: Is there a problem your company is trying to solve? If you’ve identified an issue with no current solution, this is your opportunity. For example, we developed REVTM , the first and only AI pricing tool in the baby gear industry that prices everything on our platform, ensuring parents are getting the best value for open box products. Nothing like this existed before REVTM and it has given consumers and partners access to information they didn’t have before.
What is one actionable step companies can take today to move closer to a circular economy model?
Everyone should be open to learning new ways of doing things and questioning existing practices that might be in place. Empower team leaders and employees to think about how you might do things differently in order to change the environment around you.
Could you share a story of a business or leader who has inspired you in the realm of the circular economy?
I was fortunate throughout my career to work with several leaders who inspired my creativity and business interests. When it came to Rebelstork though, it was my kids who inspired me to create a brand that would drive the circular economy and help protect the planet for their future. There were no options in the industry at the time, so the birth of this company came out of necessity.
How can our readers further follow your work or your company online?
Rebelstork would love to hear from you! We have a very loyal ‘flock’ community with whom we love to engage with. You can find us online at www.rebelstork.com, Instagram and TikTok @rebelstork or LinkedIn.
This was great. Thanks for taking time for us to learn more about you and your business. We wish you continued success!
About the Interviewer: Russell McLeod is an experienced business leader, social entrepreneur, and mentor. A champion of profit with purpose, the circular economy and of collaboration for positive progress.
Russell is the founder of Mightyhum a Toronto-based impact enterprise dedicated to supporting growing organizations. And, while it’s not a requirement, the Mightyhum team has a passion for collaborating with purpose-driven businesses. Mightyhum specializes in providing consulting services and turning hairy audacious concepts into achievable ventures & projects. The Mightyhum team work with C-suite executives and leaders, developing new product offerings, effective go-to-market strategies, building for profitability, and streamlining operations. Before Mightyhum, Russell was involved in the world of social enterprise as the Executive Director of ME to WE, one of Canada’s best known and most awarded social enterprises. While at ME to WE, the team demonstrated that being profitable and impactful was indeed possible. During his tenure, ME to WE delivered $20M in cash and in-kind to WE Charity, helping transform the lives of over 1 million people through access to clean water; the lives of 200,000 children with access to education; and 30,000 women-led businesses launched globally.
Russell’ personal mission is to inspire others that there is ‘a better way to do business,’ ‘that through business we can solve some of the world’s problems at the same time.’ You can follow Russell’s work at https://www.linkedin.com/in/russell-mcleod1/ or www.mightyhum.com.
