Should you consider buying products via reverse e-commerce?

If you have heard the term reverse e-commerce for the first time and how it works then you are at the right place.

So, what is reverse e-commerce??

The process of moving goods from their point of consumption back to their point of origin. Example: when we order a product from any e-commerce website and we return it back because of any reason. So, the returned products are categorised into the following three categories.

1. Open box category

Open box/unboxed category products are those where buyers have opened the sealed box before returning the product back to e-commerce.

2. Refurbished products

If the product is returned due to damage or transit wear and tear, it moves into the refurbished category.

3. Old stock product

These are invariably boxed products but belonging to earlier vintage.

Around 20-25% of the products sold online get returned each year.

Why do e-commerce companies sell the products in secondary market?

Repacking and resealing opened boxes is considered unethical by large companies. They do so to save on warehouse, transit and repair costs. So they liquidate these products at really heavy discounts like 80-90% varying across product categories.

Reseller or the seconds market resell these products at a discount of 20-40%? varying across product categories

Size of the reverse e-commerce market is around $6-8 Billion.

Why does reverse e-commerce exist?

1. Customer retention/Acquisition?

An easy returns process can attract even more new customers. Advertising a simple return process can encourage first-time buyers to give your company a chance.

2. User experience?

How a user is treated on an e-commerce platform is through two ways

1. Checkout journey

2. Order fulfilment.

If either of these are found to be lacking or don’t meet their standards, it can be detrimental. You want to ensure that every customer receives the best service and has a great experience all around when dealing with your company

3. ROI

It’ll help you increase sales substantially— it was reported that 45% of shoppers made an additional purchase when processing a return on a web site. While merchants may incur significant costs when implementing a reverse logistics process, the ROI will be immense.

What are the throwaway discounts across various categories?

1. Electronic Gadgets - 25-40%
2. Furniture - 40-50%
3. Apparel -30-40%
4. Home appliances - 20-40%

Players available for secondary market products?

There are present various players in the market who buy such products

1. Grabgear - For unboxed electronic products

2. Get my couch - For refurbished furnitures

If you like this article, do?Like??? , Share and Comment ?? and don't forget to subscribe to this newsletter..!