Implementing a strategy to sell pre-owned items can be a real challenge, but omnichannel solutions are once again the key.

With the rise of platforms like Gumtree, Depop and Facebook Marketplace, consumers’ interest in pre-owned items has become clear. However, for retailers that would like to integrate pre-loved items into their product offering, there are quite a few logistical challenges. Let’s take a look at the key steps of implementing a pre-owned items strategy and go over how omnichannel solutions can help.

Pre-owned items, a promising trend for retailers

The used goods market has clearly emerged as a key strategic axis for retailers. This trend that consumers are loving, allows retailers, regardless of industry, to take a step towards socially responsible retailing while significantly reducing their carbon footprint. It is also strategic because it generates sustainable practices by encouraging the use of items for as long as possible and so extending the life cycle of a product.

For retailers that wish to implement the resale of pre-loved items, there are many logistical elements to coordinate but the collection process is relatively simple:

1. The customer brings the branded items to their local store.
2. Pre-trained store staff identify and sort the items according to their condition: Excellent (new with label), Very Good, Good, Poor. Any items that are determined to be in poor condition will not be put back on sale but will be recycled.
3. The store can then give the customer a voucher in exchange for the deposited items. This voucher can be used both in-store and on the e-commerce site, for both new and used products.
4. The items are then inspected further. If no issues are detected, the used products will be steam cleaned, relabelled, and resold either exclusively online or in the stores’ pre-owned section.

What are the benefits of pre-owned goods for customers and omnichannel brands?

Including pre-owned items into your business strategy has many advantages, both for your customers and your brands.

The benefits for the omnichannel customer

• Savings on items purchased: access to quality items at an affordable price compared to new collections.
• Shopping with confidence: In the fashion and leather goods sectors in particular, customers can refresh their wardrobes with confidence as the items resold are checked and authenticated. In the electronics and household appliances sector, buyers of reconditioned goods are reassured as they know they are purchasing an item that has been thoroughly inspected, repaired and is in good working order.
• Respect for environmental concerns: customers who are sensitive to sustainability issues find that the used goods market is a new way to shop which is more in line with their values. 

The benefits for omnichannel brands

Engaging in the used goods market can help you generate new sales. Vouchers that you hand out in exchange for used items will be reinvested in new items for a 100% circular economy!

• Improved loyalty: by creating circularity, brands encourage their customers, via vouchers, to reinvest in new items
• Winning over new customers: the circular economy enables brands to win over a new, younger audience, who are fans of used goods and second-hand stores. 45% of millennials and generation Z now refuse to buy from non-eco-friendly brands (Source: GlobalData Consumer Survey)
• Optimisation of margins: selling the same items several times will help retailers optimise margins and generate new revenue.
• Enhanced brand image: the brand, and by extension its products, will gain a more eco-friendly and sustainable image, which is reassuring for customers   

Re-marketing pre-owned items in an omnichannel environment 

The OMS will account for used items within the unified stock and organise them, in the same way it would for new items. Customers will be able to create baskets of different types: new items only, pre-owned items only, mixed baskets (new items + pre-owned items). Whatever the combination, the order will be managed by the OMS, which will select the stock point best able to fulfil the order, whilst at the same time respecting the business requirements. 

The OMS will allow retailers to implement the same omnichannel solutions for pre-loved items as for new items: ordering references in-store, shipping items from the stores (Ship From Store), etc. 

For these purchases, the Delivery Promise can also be implemented and will offer delivery methods similar to those normally offered by the retailer: home delivery, delivery to a pick-up point, Click & Collect, Reserve & Collect etc. 

Finally, returning used items could also be made possible in the same way it is for new items,  such as returning the items by post or to the store. The items must be labelled and in the same condition to that in which they were delivered.  

So, to summarise, the role of the OMS plays when integrating pre-owned items to a retailer’s product offering is as follows: 

1. Establishing a unified stock taking into account both new and pre-owned items.
2. Organising orders, regardless of the type of basket, according to the same business rules.
3. Using the same omnichannel solutions already used by the retailer to process orders: Ship From Store, Order in Store, etc.
4. Offering the same delivery methods as those offered by the retailer for baskets of new items: Click & Collect, Reserve & Collect, home delivery, etc.
5. Processing self-service returns for pre-owned items 

If you’d like to read more about how retailers can adapt to the growth of the circular economy model, download our white paper:  https://bit.ly/3rtR2P0 

To find out more about OneStock and the services they provide to the retail industry, click here.

This article was also published in The Retailer, our quarterly online magazine providing thought-leading insights from BRC experts and Associate Members.

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