Liquidity Services- December 03, 2014
Refurbished products make up a surprising amount of retailers' sales. From listing them on online marketplaces to putting them directly on shelves; pre-owned, renovated items are becoming more popular. Despite myths surrounding refurbished items, there is a large market of consumers anxiously waiting to purchase pre-owned and refurbished products this holiday season. By catering to those customers, retailers can significantly improve their recovery on "B" goods.
Perfect for electronics
First, let's clear up the myth that renovated products are of no interest to the average consumer. A recent survey administered by Liquidity Services proved that customers are highly interested in refurbished goods, especially electronics. The survey results found that 94 percent of respondents have purchased a refurbished product in the last three years. This statistic demonstrates that a secondary market for these “B” goods is valuable and is helping retailers improve their recovery on surplus items.
Additionally, the survey demonstrates that consumers consider refurbished products, electronics in particular, to be just as good as brand new items. For example, 66 percent of consumers agree that renovated items are on par with new goods, while 84 percent of the survey's respondents stated that refurbished products are a good value. With long gift lists in hand, customers are looking for sales during the holiday season. Refurbished products are a great way for retailers to offer “Black Friday” prices throughout the holiday shopping season, making retail locations desired stops for shoppers eager to save.
The secondary market, a different market
This brings up another point: the refurbished product market is made up of different consumers than the so-called "A" product consumers, and they actively seek out and trust refurbished products.
Many consumers are actively seeking the deals that retailers can offer via refurbished products. The previously mentioned survey found that 80 percent of respondents list price as a top factor when they purchase renovated goods. Even more impressive is that 81 percent would recommend buying refurbished products to their family, friends, and peers. This means that one happy "B" product customer could convert others into doing the same. As consumers move up the career/financial ladder, they build brand loyalty and tend to purchase “A” goods based on positive experiences with refurbished goods.
Furthermore, many consumers are driven by eco-friendly intentions when buying refurbished products. The survey shows that 41 percent of "B" product consumers purchase remarketed or refurbished goods because they are focused on sustainability. This important finding helps retailers market their refurbished goods in a variety of ways.
This holiday season, many consumers are looking for the best deals whether they're in store or online. Retailers will need to continue to explore and expand these options as technology becomes more ingrained into the lives of their customers. A recent National Retail Federation study discovered that 56 percent of holiday shoppers will do at least some portion of their purchasing through online channels. Given this demand and the demand for refurbished goods, retailers need to be cognizant of their customers' demands and deliver the right product through the right channels. In fact, Cyber Monday is getting nearly as much attention as Black Friday. Using a trusted provider, retailers can capitalize on a multi-channel approach to serve all of its customers.
It is common for savvy shoppers to check online marketplaces for deals on products before heading into a store.
How to be successful
Retailers will need to expand their perspectives to leverage the "B" product market and recover as much revenue as possible this holiday season. First, stores should consider working with a provider that understands how to properly market refurbished goods to the right audience. Retailers can focus on what they do best, and the partner can provide expertise in all aspects of marketing.
Second, retailers need to stock up on refurbished products now in order to sell them this holiday season. Liquidation.com is a great outlet for a wide variety of products, including electronics and video games, which can be purchased in bulk or single supply. Refurbished products could just be the perfect solution to improving the bottom line this holiday season and to fill the need for that hard-to-please family member or friend on the gift list.