Reverse logistics is one of the hottest industry trends of the young twenty-first century. Defined by Reverse Logistics Magazine as:
the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal,
the concept seeks to decrease market deficiencies by creating maximum value after the original point of sale. This is most commonly done via recycling, remanufacturing, or recommerce. Recommerce alone offers consumers significant benefits—which is why businesses everywhere are integrating buyback programs into their operations.
Customers Love Buyback Programs
In a commercial environment where a new gadget or smart phone hits the market seemingly every day, it’s easy for consumers to be dismayed. Most lack the money to purchase every available device. So how does one choose among so many options? Buyback programs make that choice just a little easier.
When Apple released its iPhone 6 and 6+ late in 2014, major cell phone networks such as Verizon immediately saw an opportunity: thousands, if not millions, of consumers wanted the new phone. But many still had old phones that were perfectly usable. So the networks started offering buyback programs, offering as much as half of the price off the new iPhone in exchange for a trade-in of the old device.
The benefits to consumers were obvious: they didn’t need their old phones anymore anyway, so why not get money for them? It made the new iPhone that much more affordable, allowing them to buy a new device without breaking the budget. But the buyback networks themselves also profited: they sold the old phones and their parts in recycling and remanufacturing efforts, adding additional profits to a strategy that was already booming because of the increased sales.
Isn’t it time you beefed up your recommerce efforts?
Reverse logistics can significantly benefit consumers on a budget—and it can benefit your bottom line as well. Contact us to learn more about reverse logistics and possible recommerce strategies for your business!