Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun Nov 5 2017 00:25:07

New Resale Model Could Disrupt eBay C2C Sales

By: Ina Steiner

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What if a retailer allowed customers to resell their past purchases on its marketplace? Swiss electronics retailer Digitec Galaxus is offering such a service for products purchased from their websites digitec.ch and galaxus.ch.

According to the company's announcement, the customer can select an item from the list of purchases in their account under the "My Products" section. Since the retailer already knows the details of the product, the customer only has to provide information about its condition and the desired selling price, though they do have the option of uploading additional photos.

Once listed, the items appear on the retailer's site with an indication that the item is "Used." Digitec Galaxus even passes along the item's warranty to the next customer. Products that customers purchased for at least 50 francs going back to August 2014 are eligible for resale through the program. The seller can set their own price, and they have the option of participating in a Dutch auction where the price drops over a 1- or 4-week period.

The service is seamlessly embedded in the retailer's existing online shops.

We discovered the service through a tweet from Jochen Krisch of German publication Exciting Commerce who linked to a story about the service in a Swiss blog called Carpathia. 

Retailers like Best Buy have long had trade-in programs, understanding that some consumers like to upgrade to the latest gadget or generate cash to buy more things. But Digitec Galaxus takes this to another level - closer to the eBay model, but much easier.

Digitec Galaxus says all used items are backed by a wealth of detailed product data, as only items that were once purchased from digitec or Galaxus can be recycled. The buyer sees, for example, how old a used smartphone is, whether it has one or two SIM card slots or with how many megapixels the mobile phone camera shoots photos. Furthermore, all existing warranty services are passed on to the buyer. 

The Swiss retailer uses an escrow model and will mediate in cases where the condition of the item has not been described accurately.

If retailers like Best Buy try this model, it could have an impact on the "consumer sellers" that eBay is trying so hard to attract. It could also impact professional sellers of certain categories, since customers would be drawn to retailers' website rather than marketplaces knowing they could peruse a mix of new and used goods and get service from the retailer, even for the used items.




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This user has validated their user name. by: Ming the Merciless

Sun Nov 5 01:37:58 2017

Smart.

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by: Clothing Seller This user has validated their user name.

Sun Nov 5 03:00:14 2017

Absolutely stupid.  The retailer can't verify the condition of the product or that the product even exists in the hands of said owner.  Just because someone made a purchase it does not mean they wont be tempted to abuse the feature.  

Furthermore, it's no different than eBay cutting out the smaller, the pre-owned and the collectible sellers by creating services like Twice and Valet.  With employment opportunities being very low and with lower wages than the 1980's, big business continues to squeeze the middle and lower income populations which is 99% of the world population.

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by: FeelingFroggy This user has validated their user name.

Sun Nov 5 04:02:56 2017

A few fake items that the retailer has to pay for will end this stupid program.

Nothing stopping scammers ( and they will do this ) from buying something and then replacing it with some chinese knock off and listing it. The retailer will be stuck a few times and will end the program with as much notice as it gave when it started it.

I'm really surprise that Fleecebay hasn't thought of something as dumb. Umm Maybe in the spring changes.

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by: Snapped This user has validated their user name.

Sun Nov 5 11:50:32 2017

''The Swiss retailer uses an escrow model...'' - to address the 'fraud' issues on a back end they claim, so presumably they could vet, or hold a payout adequately too.  (Smaller scale = able to accommodate). Or at least they want to appear so capable.  At the niche retailer scale, it seems feasible enough.  They'll be surprised by the cost of quality customer service that isn't automated or outsourced and thus prone to alienate folks though.  That dwarfs the occasional digital finger discount and warranty claim fund combined.
----

''..it could have an impact on the ''consumer sellers'' that eBay is trying so hard to attract.''  

Would that be more of an impact that eBay's current abhorrently abusive and obstructionary policies and practices have already done to discourage such sellers who don't cycle a whole lot more zeros left of the decimal point?  Despite all eBay's machinations with autonimatron listing and fulfillment being 'designed' (plagerized) and randomly unleashed to accommodate such categoricaly related items, which no doubt to them represents both business innovation and attractiveness to potential sellers, all their other policies still hang damoclesean, demonstrating they still lack the capacity for this:
''...understanding that some consumers [potential sellers] like to upgrade to the latest gadget or generate cash to buy more things. ''
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''...and get service from the retailer, even for the used items.''

The first warranty ever offered was a discriminator.  But it was also conditional, as a reasonable business cost control.  The first unconditional warranty was the next related discriminator.  And offering it is a choice all can make to compete.  If backed via 'a service or underwriter', especially one inherently more 'acceptable' to the end buyer, it's even easier to compete.  Choosing if, how, and judging a capability to compete, well that's business.

But when it becomes virtually compulsory to provide it out of pocket, wth attendant penalty for non-compliance being a certain sentence to eCom purgatory and an artificially induced supply depression, it not only shutters the independently enterprised seller affected, but also eliminates all potential buyers of that preowned supply, who's 'dissappointment' is likely to be permanent.

But it doesn't eliminate their desire to buy.  

And the fact this and more to surely follow retailers who are fundably scaled will now offer means to host those exBaytriots, on BOTH sides of the handshake, is indeed, as Ming has categorized.


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by: TomH This user has validated their user name.

Sun Nov 5 14:12:35 2017

I think it is pretty smart -- for the European narrow niche market this seems to be aimed at. My sons sale on eBay Germany with few of the problems that are experienced by us stateside eBay sellers.

I would be very hesitant to try if on eBay dot com unless the volume was so high that the loser scam buyers could be written off.

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by: donald This user has validated their user name.

Mon Nov 6 00:21:54 2017



Great idea. We should learn from them.

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by: Chicago48 This user has validated their user name.

Mon Nov 6 04:34:40 2017

"The retailer can't verify the condition of the product or that the product even exists in the hands of said owner.}
It's a smart move and stops the counterfeiting of high ends.  Of course there would have to be controls, such as "when" can the product be resold?   What proof is required that you bought the product to resell it?  (Receipts? credit card statements?)  Can it be resold only by the original buyer or can a family member resell it?
Also, Ann Taylor is trying a subscription program for clothing, as is Rent the Runway.  Retailers are mixing it up.  Not just having a B&M, but adding ecommerce and subscriptions.
We are truly becoming a "throwaway" disposable society.... renting stuff vs. long-term possessing.

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by: quovadis12345 This user has validated their user name.

Mon Nov 6 07:39:55 2017

First of all, and to compare, this is the ONLY large retailer in a small country of 8 million people. Secondly, in a country where everything works like clockwork, and people do not rob each other blind like they do here. This could possibly work.

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by: Barbbie This user has validated their user name.

Mon Nov 6 09:56:21 2017

I think it is smart of them, of course, I do not sell their items so perhaps I would think differently if I did. I don't think it is much different from buying on best buy. I think that ultimately, the attractiveness of the venue will command a higher price and thus the price concerned will still seek out the knockoff or used items on the other venues. Plus you have those loyalists on venues who will never bother to know or care that a retailer has a special program and whose buying habits will not change no matter what another venue does.
Of course, it can also backfire or cause angry feelings toward the retailer, example on Walmart, despite our pretty obvious name on the ads online and packing slip, people still try to return our items to a Walmart. Some are mad when they call or email me because they were unable to make a return at the store and are surprised supposedly did not know third parties could sell there.



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