[Tribune] 5 tips to grow your second hand business

The Covid crisis was a real and accelerating indicator of the trends that encouraged the population to consume better. But what does this mean? Better consumption means buying less, but better, while enhancing the sustainability of products by giving them a second life. In 2021, 44% of French people bought at least one refurbished item, including 55% of those aged 18-34. In order to respond to this enthusiasm, retailers have adapted to respond to the pure players who have pre-empted the sector. Today, Backmarket’s valuation (5.1 billion euros) is three times higher than that of the Fnac Darty group.

In order not to be abandoned, traditional retailers have to adapt by offering refurbished products. It is important to control all stages of the value chain in order to reduce costs and improve customer experience.

1. Develop your own resources

Second-hand products are becoming scarce. This is why it is so important to multiply your sources of supply. The first method is internal! Retailers create a large volume of products that cannot be resold as new through e-commerce opt-out and after sales service. The second method isUse his POS to install stations to redeem used products via vouchers and give them a second life. The last method isDetermine, according to the sectors of your activity, the players whose activity generates a large number of used products. In the world of telephony, second-hand specialists make agreements with French and foreign operators, especially American ones, who are unable to sell their used products and who can still get a second life.

2. Set up the quality process

Once the sourcing issue is resolved, it is important to prepare the PLM in order to manage the product life cycle and establish quality processes in order to define the key control points. Therefore the products will be tested, recalled, emptied and qualified in order to meet the user’s requirement.

The goal is to have the best possible customer experience without being disappointed with the product received.

Une charte qualité doit être mise en place afin de reprendre les différents points incontournables de qualité du produit reconditionné, par exemple pour un PC on prendra en considération l’état de la batterie, l’état de la batterie, l’état de la batterie, l’état de la batterie, l’écran, le clavier, lechâs lech accessories.

3. Communicate on your site

Quality processes must be detailed and transparent so that customers can understand how to select and renew products. The different states produced (eg: new, perfect, very good, good) should be the subject of a detailed description, so that at certain locations we find concrete imitations of what each case indicates (scratches, impacts, battery capacity, etc.). Customized product details are more popular with customers because they know exactly which product they are going to get. It is also possible to go beyond the image as well as the overall image of the product. Stores are also generators of used products, so an e-commerce site will be a great forum for them to sell their products.

4. Pay attention to the shipping and post-purchase experience

Used products can generate a large number of returns and affect customer satisfaction. It is therefore important to take all precautions when sending in the product. There are several ways to do this:

– Offer free case and screen protector on technical products to make the bumps on the product invisible

Introducing new accessories like charger and headphones

– Proposing an additional guarantee to support the customer in case he suffers a setback in his purchase

All of these items will improve your shopping experience while reducing product returns, which are above the market standard for second-hand products.

5. Reinventing the distribution method

New consumption patterns have changed the attitude towards the ownership of an object. The PAAS system of “product-as-a-service” is gaining ground and the product used is the cornerstone. As with cars and leasing, tech, DIY products, or even furniture can be rented for the short, medium and long term. Players are evolving to help retailers respond to these issues.

A new consumption model is presented to consumers in the flea market. In 2021, 14% of smartphones sold in France were refurbished. Retailers must adapt quickly in order to position themselves in this market and not allow new players to fit in. These adjustments will not be made without investments and a complete overhaul of the enterprise to include the used products division whose operations will be different from the traditional activity.

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