The consumer electronics industry is a booming business all over the world, and nowhere is this more apparant than in the United States. Smartphones, tablets, and other mobile devices have become the must-have status symbols of a new generation of technology-hungry consumers. However, these products have short life cycles and consumers are often quick to jump at the opportunity to upgrade. But unwanted consumer electronics are not worthless–in fact, there’s a fortune to be made from them by using reverse logistics tactics.
Profit from Yesterday’s Consumer Trends
The focus for most companies involved in the electronics industry, especially smaller ones, is on the logistics involved with manufacturing, transporting and selling of consumer electronics. However, very little attention has traditionally been given to the other side of the coin. This narrow view reduces the potential for profits and puts smaller companies in an extremely vulnerable position within the marketplace. The competitive edge goes to the companies that effectively incorporate both forward logistics and reverse logistics into the mix.
The Science Behind the Business
Reverse logistics is defined as the processes of dealing with unwanted and returned consumer electronics for the purposes of recapturing revenue. This can be done by one of the following means; selling the devices on a secondary market as-is, repairing and refurbishing them for resale, breaking down the devices into their respective components or simply discarding them. When reverse logistics processes are fine-tuned by companies, the revenue potential rises exponentially.
Larger technology companies often have separate departments in place to handle returns, recalls and the like. This system is part of their overall operations, opening up a variety of new revenue sources beyond the initial production and sales. Because these larger companies have the resources available, they are able to tap into the revenue potential in a way that smaller businesses may not be able to. It may seem then that they have the advantage and that smaller companies cannot compete.
The reality is that no matter the size of the company, it is possible to reap the benefits of the reverse logistics supply chain. Though it’s true that smaller companies have limited financial resources, facilities and staff in comparison to their larger counterparts, it’s not impossible for them to participate in this new revenue stream. Some small businesses may be able to institute the process with a fairly small investment while others may not be able to. In order to manage the process effectively and in a cost efficient and competitive way, hiring a third-party logistics provider such as Sourcely may be the best choice.
Sourcely Helps You Stay Ahead of the Competition
In the competitive electronics world, every innovation that a company takes advantage of can put them one step ahead of the competition. Tapping into the reverse logistics potential in the consumer electronics industry is not just a good idea; it’s a sure way to gain the competitive edge. Smaller companies need not be intimidated by larger, more financially secure companies in this realm. There are a huge number of unused, unwanted and outdated consumer electronics that can be turned into profits with the right systems in place.
If you’re interested in finding out how your small business can create a new revenue stream based on unwanted consumer electronics, contact us. We will be more than happy to explain how our services can help your small business gain the competitive edge and tap into this revolutionary new revenue stream.