A Clothing Rental Service’s Journey to Deliver a Seamless Experience

Nuuly, a clothing subscription rental service, has achieved over 50% year-over-year growth thanks to its expanded partnership with Recurly, a subscription management and billing platform. The technology has enabled Nuuly to deliver a more rewarding customer experience, drive growth, and launch new markets.

In a competitive world where fashion rental and subscription services are maturing, Nuuly’s key to success lies in providing everything a subscriber wants and expects – seamless purchase to smooth returns. According to a report by Recurly, “2025 State of Subscriptions,” the subscription market is shifting from mass acquisition strategies to more targeted approaches, focusing on enhancing subscriber experience and cementing customer loyalty.

The report analyzed over 2,200 Recurly merchants and 67 million unique subscribers over a 12-month period, revealing the increasing importance of providing a seamless experience, from online store inventory offerings to the return process and everything in between. Nuuly’s partnership with Recurly has enabled the fashion rental service to launch new features, including ‘check my return’ and ‘The Thrift Shop,’ which have eliminated delays in subscriber ordering new fashion as soon as returned items are in process.

“We knew we needed a subscription billing partner who could not only move fast with us but also scale as our business evolved,” said Joe Stratter, executive director of technology at Nuuly. “Recurly stood out because of its capabilities and speed of implementation.”

The partnership has also enabled Nuuly to offload operational pain points like payment orchestration, dunning, and subscription lifecycle management, allowing the company to focus on delivering a seamless and innovative customer experience. Nuuly’s primary goals were to eliminate complexity in recurring billing, improve time-to-next-shipment workflows, and gain flexibility to support new revenue models like one-time purchases.

“The big gains have been our ability to unlock faster repeat engagement with tools like ‘check my return,’” said Stratter. “By integrating UPS scan data with Recurly’s real-time orchestration, we can automatically trigger the next shipment as soon as a return is in motion – leading to higher customer satisfaction and reduced downtime between rentals.”

Another major ROI driver has been flexibility, which has allowed Nuuly to expand beyond rentals into resale via The Thrift Shop, all while keeping its billing infrastructure unified. The versatility has supported Nuuly’s growth of over 50% year-over-year and helped the company continue to innovate without needing to re-architect core systems.

Customer loyalty and delivering a personalized experience are at the heart of what Nuuly does, according to Stratter. “Our subscribers aren’t just renting clothing; they’re in search of an experience that is flexible and convenient for their busy lives while also aligning with their own sense of style and values.”

Nuuly’s commitment to sustainability and individuality has also been a key driver of its success. The company’s ecosystem is focused on eliminating the waste of one-off purchases and giving secondhand items a new life. Members subscribe and rent any six styles, every month, for $98, and are provided with free shipping and returns.

In addition to its partnership with Recurly, Nuuly has also been working to reduce its environmental impact. The company has implemented a number of initiatives, including:

Sustainable sourcing: Nuuly sources its clothing from a variety of suppliers, including those that prioritize sustainability and environmentally-friendly practices.

Reducing waste: Nuuly has implemented a system to track and reduce waste throughout its operations, including reducing packaging and minimizing returns.

Closing the loop: Nuuly’s rental model allows customers to return items and rent new ones, reducing the need for new, resource-intensive production and consumption.

Educating customers: Nuuly provides customers with information and resources on sustainable fashion practices, encouraging them to make more environmentally-friendly choices.

By prioritizing sustainability and individuality, Nuuly has been able to differentiate itself in a crowded market and build a loyal customer base.

In conclusion, Nuuly’s partnership with Recurly has been instrumental in driving the company’s growth and success. By delivering a seamless and personalized experience, Nuuly has been able to unlock faster repeat engagement, improve customer satisfaction, and reduce downtime between rentals. The company’s commitment to sustainability and individuality has also resonated with its customers, driving loyalty and growth.