BestBuy Succeeds In Secondary Market Division
By Megan Zielinski, contributing writer
Through pricing solutions provided by MarketYze, pricing intelligence software company, BestBuy is continually experiencing growth in sales and customer satisfaction in the BestBuy Secondary Market Division.
Over the past year, BestBuy has focused on refurbishing and restoring returned electronics for resale at discounted prices. They have incorporated MarketYze pricing platform and BestBuy Geek Squad to thoroughly inspect devices before putting them out on the market again.
MarketYze provides BestBuy with fixed pricing specifically for each item based on age of item, condition, and product popularity. The software platform strategically prices secondary electronics to appeal to customers while guarding BestBuy’s profit margins. The module is set up to analyze data of other competitors and deliver comparable prices that benefit the company’s performance. Robert Biles, General Manager Online Consumer Sales, Secondary Division of BestBuy, proclaims of MarketYze, “It has allowed us to build a more profitable business that also delivers more value to the customer.” BestBuy has been in partnership with MarketYze for two years, upselling gently used products while staying competitive with other used merchandise retailers including, Craigslist, Amazon, and eBay.
While BestBuy is making strides to deliver high-quality technologies to customers, they are also using the Secondary Market District as a way to scale back company costs. BestBuy experiences a return rate greater than 80 percent of retailers nationwide. On average, BestBuy customers return more than 10 percent of product purchases each year.
According to logistics, retailers typically throw away, recycle, donate, or sell used merchandise to liquidators unnoticeably disposing a great deal of money. The size of the secondary market makes up 2 percent of the economy at $329 billion in costs. “Returned products are often untapped sources for revenue. With the secondary discount market for products continuing to grow, there are even more reasons to think about returns as revenue opportunities,” states in a report by UPS and reverse logistics firm, Greve Davis.
If effort to return the promised amount of $725 million to investors two years ago, BestBuy is taking advantage of their success in the Secondary Market Division and the knowledge of company-leveraged customer service tech group “Geek Squad,” reducing the amount of returns by assisting customers with purchases. Instead of having to close stores and cut jobs to save costs, BestBuy is optimistic in the success of these provided services.