Jen Wehrmaker is Vice President of Marketing at B-Stock Solutions and former marketing executive at some big ecommerce names, including PayPal, eBay, and GoDaddy. She discusses how merchants can expoit the growing trend of increasing returns combined with high demand for used goods in Part 3 of EcommerceBytes Online Selling Trends 2019.
As customer returns increase, more retailers and brands are turning to secondary market channels like B2B marketplaces to sell the stock in bulk directly to eBay, Amazon, Poshmark and other B2C marketplace sellers.
What’s more, much of the inventory will be unused/new and open box quality (especially after the holidays). This gives (re)sellers a better opportunity to secure quality, name-brand inventory directly from the retailer/brand.
For savvy online sellers, breaking these lots into single units for consumers can be a boon, accordingly, expect to see more online sellers listing customer-returned and overstock items from today’s most popular retailers and brands.
Tips for selling open-box goods online
When sourcing open-box goods for resale, consider looking at dot com returns:
- A DOT COM return is typically much better quality than an in-store return : often the original packaging is intact or it may be brand new/unopened.
- You can assume DOT COM returns are consistently worth more: the higher quality the item, the more you can sell it for.
- There is less work required to package and prepare DOT COM items for resale.
- There are more SKUs available: there is typically more inventory available online which directly correlates to the amount of returns.
- When it comes to open-box/returned items, many online resellers would say “under promise and over deliver.”
- Don’t ever mark an open-box item as new; that can lead to lack of buyer trust. On marketplaces like Amazon and eBay, that can mean account suspension.
- Resellers should be totally transparent regarding the condition of the item as well as provide any details on what the buyer can expect regarding packaging, warranty, etc.
Take clear photos:
- Posting clear and accurate images of your products has major benefits including higher prices, more sales and additional trust from buyers.
- It also makes searching for listings easier.
Used items are in high demand:
- Buyers are open to purchasing used item because it will cost them less.
- Buyers like getting a deal.
- Buying something as “used, like new” is like getting a brand-new item in an open box.
- Ex: when it comes to toys, some parents know their kid will probably destroy the item in no time. Accordingly, the parent would rather pay less for the item – just in case.
Introduction to Online Selling Trends 2019: Back to Basics
1) Diversification and Expansion Beyond Marketplaces
2) New Sales Tax Obligations
3) An Increase in Returns Combined with High Demand for Used Goods
4) Major Changes in USPS Rate Structure, Adoption of Voice Technology
5) Retail Convergence Accompanied by Tax Complexities
6) Increasing Cost and Complexity of Parcel Shipping
7) “Glass Box” in Artificial Intelligence, In-Store Personalization
8) Continued Dominance of Ecommerce by Amazon