The staggering volume of returned merchandise in the U.S. retail sector presents a dual challenge: immense financial loss and a significant environmental burden. One innovative startup, rScan, is addressing this by empowering enterprising resellers to prevent nearly a million pounds of retail returns waste from ending up in landfills, transforming a problem into profit.
Estimates from the National Retail Federation indicate that Americans spent over $1 trillion during the recent holiday shopping season alone, contributing to an estimated $5.5 trillion in total retail sales in 2025. A substantial portion of these transactions, approximately $850 billion in merchandise, eventually returns to retailers. However, for many companies, inspecting, sorting, and reselling these items is often more expensive than simply discarding them, leading to millions of tons of products accumulating in landfills annually.
This systemic inefficiency creates a massive ecological problem alongside a significant financial drain for retailers. The traditional reverse logistics process is costly and complex, leaving a vast pool of perfectly usable, albeit returned, goods destined for disposal. This is precisely where rScan intervenes, offering a streamlined solution to divert these products into a thriving secondary market.
A Smarter Approach to Retail Returns Waste
Founded by Ryan Ryker, Julian Marquez, and Rod Baradaran, rScan developed a unique software and logistics service tailored to the challenges of returned inventory. Their core offering for resellers is a straightforward barcode-scanning app, yet it’s backed by a sophisticated data infrastructure. This system allows resellers to quickly understand what they have, assess its condition, and determine its resale value.
When a reseller scans a product’s UPC barcode, the app instantly retrieves the item’s name, brand, images, detailed descriptions, and even manuals. This crucial information enables a thorough assessment of the product’s completeness and condition, helping resellers decide if an item is worth the effort. According to a report by Fast Company, this process is vital for navigating the often-disparate mix of items found in returned pallets.
Beyond identification, rScan’s platform automates the creation of product listings. It pulls dozens of necessary product attributes from its database and formats complete listings optimized for major online marketplaces like Amazon, eBay, and Shopify. The company continuously scrapes these sites to provide real-time pricing data, helping resellers set competitive prices and maximize their profits.
Empowering the Resale Economy and Sustainability
rScan’s business model is designed to be accessible and scalable, charging 30 cents per month per unique item cataloged and a sliding commission from 1% to 3.9% on monthly sales. This structure supports a diverse client base, from individuals working out of their garages to larger operations generating hundreds of thousands of dollars annually, as noted by CEO Ryan Ryker.
The company’s impact extends beyond just financial gains; it significantly contributes to the circular economy by extending the life cycle of products that would otherwise become landfill waste. Co-founder Julian Marquez highlights the social aspect, noting how rScan provides a vital safety net for individuals seeking supplementary income, especially in regions facing economic downturns. This aligns with a broader movement toward sustainable materials management and waste reduction initiatives.
Initially bootstrapped by its founders, rScan has grown to 36 employees and expanded into a 53,000-square-foot warehouse in South Bend, Indiana. This facility not only manages incoming returns from retailers but also provides storage and shipping services for smaller clients, demonstrating a comprehensive approach to reverse logistics. Their commitment to these values drives their future plans, including potential partnerships with outside investors who share their vision for a more sustainable retail future.
rScan exemplifies how technological innovation can address complex challenges at the intersection of commerce and environmental stewardship. By creating efficient channels for returned merchandise, the startup not only alleviates the financial burden on retailers but also makes a tangible difference in reducing landfill waste. This model points to a future where discarded goods are increasingly seen not as waste, but as valuable resources waiting for a second life, fostering both economic opportunity and ecological responsibility.
