Sourcing of Product
Meaningful Re-Commerce Procurement
Having a fresh and appealing product selection is one of the pillars of success in any business, and that is especially true in the re-commerce business. Re-commerce is the selling of previously owned, new (overstock), or used products, so you can’t just order what you need from a manufacturer. Successful re-commerce dealers have multiple ways of buying inventory. Fresh inventory is the lifeblood of any business because customers need to keep seeing new merchandise, or they will stop coming. You can’t attract customers with uninspired merchandise, so it’s important to be on the lookout for merchandise that can appeal to your customers.
A re-commerce business is an assemblage of items, but this doesn’t just happen, it was built over time by finding, gathering, and strategizing ways to buy inventory. It is important to source products through different strategies, including trade-in programs, returns, buybacks, closeouts, individuals, and companies.
At Envela, we are all about sustainability, extending the lifecycle of products, and giving them new life. We help extend the life of products through the resale of pre-owned and refurbished items in our B2B & B2C marketplaces. Keeping products in circulation contributes to the sustainability of our planet through the circular economy.
Certain segments of resale need a system or protocol in place to authenticate items. Having items verified by experts is ideal, but no authentication process is foolproof and needs to always be evolving. Our authentication team receives training to have an understanding of the materials and craftsmanship behind genuine products. Our team is constantly innovating. In the past year, we have started using artificial intelligence and machine learning to support our authentication process. Products or brands deemed with a higher probability for counterfeiting are pulled during refurbishment for further review by our Quality Control team.
Buyers are responsible for finding, negotiating, and purchasing merchandise to grow the businesses and increase market share. Because of the heterogeneous quality or physical condition of pre-owned goods, the same products can attract different prices. Buyers need strong negotiating skills, as well as a sense of a category’s product trends and pricing information. Buyers often aggressively hunt down new business opportunities and are looking for closeouts, buybacks, overstocks, refurbishes, liquidations, and retired assets. To be successful in this role, buyers sometimes will call upon long-term relationships to find the right product, in the right condition, and at the right price.
Trust is the single-most-important factor in business, and this is particularly true for re-commerce. A reputation can change over time because it’s based on perceptions. Every time someone interacts with a business their opinion of a brand’s reputation can change. Since a company’s reputation is controlled by perceptions, it’s important that the company provides consistency in its customer interactions. Maintaining an outstanding reputation helps attract willing sellers.