Trade-in retail Process

What is Trade-in retail Process

In many retailing businesses, especially in electronics or retailing business with short product life-cycle (trendy products) but the long-time usage and can be reused many times, it’s very popular for retailers to buy products back from customer. This buy-back products can be which the customer purchased from this business (this store or another store in system) but can be which the customer purchased from another business. For example, many phone sellers provide the service called Buy 1 exchange 1 to promote customer to bring their own old phones to store and get the new phone with only the difference price. Another scenario which can happen such as CD game sellers promote customer to return their purchased CD games to store to get Gift Card/money back or of course, new CD game. Or in pets store, in addition to selling pets directly to customers, many retailers buy back puppies, kittens, etc which are children of pets the retailers used to sell to customers.

So whatever scenario is, we need to have a POS system to handle this process efficiently. We help a lot of clients with this service to bring the end customer with the best experience here as well as promote sales. Let’s discover how we help clients operating everything here.

1. Set up products which are allowed to buy back

No matter you’re selling products you buy back or not, you need to set up the rule of calculating prices when buy back or the products which are possible to buy back from customers. Please take note that when retailers buy back from customer, their final purpose is still to resell. (They can furnish this item to resell with the higher price or they get the usable components in device to resell them separately). And maybe, for some phones/laptops which are still usable but many retailers will never buy back because the operating systems or hardware components are too outdated which the brand suppliers no longer support that lead to the difficulties for these retailers in reselling products as well as providing warranty to customers.

2. Buy back from customers and exchange new items

Staff can easily switch between 2 modes: Checkout and Buy Back to calculate the difference price in customer wants to exchange new item. If not, you merely click Buy back to calculate the money you need to pay back to customers.

If buy-back products are not available in catalogue, staff can still easily create custom-product in POS to buy these items and take note efficiently.

3. Furnish or recycle products when buy back

When buy back from customers, many retailers need to furnish/recycle them so they might need to charge the fee of furnishment and deduct this fee when buy back. Plus, they want to manage all need-to-be-furnished products in a separate area or inventory to easily control them later. It should be better if POS can serve this function as well.

Plus, furnishment can be a complex process when technician needs to check quality of the buy-back items thoroughly, determine which component should be replaced and calculate the fee and time of replacing the components here. Next, after completing furnish item, they need to determine the possible cost of products and transfer these items to sales department.

In regards to recycle one buy-back items, the technician can disintegrate all components in one PC, check the components can be resold and the possible price, the life-cycle and warranty of these components in the market. Moreover, retailers need to control the cost-efficiency when buy back to recycle and provider later warranty to these items.

4. Allow customer to get money back or Gift Card

To promote customer get back more and more while control cashflow efficiently, retailers prefer to give customers back by Gift Card or Store Credit instead of money. On the contrary, customers definitely prefer to get money back. So how can we harmonize the benefit of retailers and customers here?

There is one way we apply for trade-in process in client’s business here:

  • If customer wants to get money back by cash/credit card/etc, they only can get x% of the returned value
  • If customer agrees to get money back by Gift Card or Store Credit, they can get 100% of the returned value

So have you operated this service in your retailing store? How have you operated it now? Don’t forget to share your ideas here and let us know about your practice so we can together optimize everything 😀

Emmy Le
Author:
A tech-lover and a data-driven business consultant who deploys disruptive innovations to Magento retailers in Omnichannel Age

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