Konstantinos Vasiadis is Managing Director of Elvinci.de GmbH in Nuremberg. By purchasing returned goods, it helps retailers and manufacturers avoid the high costs associated with ‘dead goods’ in the warehouse. On the other hand, thanks to its large online product portfolio, it offers companies the opportunity to cheaply purchase returned goods for resale in order to achieve high margins. The entrepreneur relies primarily on automated processes to ensure that the processes are as sustainable and efficient as possible for everyone involved.
About 286 million return parcels from German e-commerce travel through Germany each year. This not only has disadvantages for retailers, but also enormous environmental consequences. Picture: The average length of a simple return package is approximately 40 centimeters. If all the packages were lined up, this would give a total length of 114,000 kilometers – almost three times the circumference of the Earth.
But what happens to returned items? EuroHandelsinstitut, the EHI Retail Institute, surveyed 92 German online retailers and delivered shocking results: around 55 percent of returns, or 143,000 tonnes of new goods, are simply destroyed each year. Be it new washing machines, lawn mowers, branded shoes or smartphones. Stunning numbers have been revealed in recent years, especially by leading internet giants. Sustainable solutions that counteract unfavorable development are now increasingly sought after. Konstantinos Vasiadis offers this solution with Elvinci.de GmbH and gives the returned goods a second chance: “You can very well resell the returned goods if you do it systematically. You can use artificial intelligence for that. ” Expert Konstantinos Vasiadis summarized in three tips in which processes can be used artificial intelligence, for example, so that online sellers can earn money on the returned goods.
Tip 1: Incoming goods
The reason why many companies destroy returned goods is simply because they are saving money. But usually such short-term decisions have far-reaching consequences – not only for the dealers themselves, but also for the environment. Retailers even have the option of making additional profits from returned goods. However, if you do not plan everything carefully and do not calculate, the margins are rather small – explains the expert on the returned goods.
Therefore, it recommends using artificial intelligence when receiving the goods, as the goods are classified at the same time that the goods are received. This not only saves a significant amount of work, but also provides greater structure and efficiency. The classification itself should be kept as broad as possible and can be supported in many ways by artificial intelligence: from automatic counting, measuring and identifying products with relevant information, to sorting and accounting.
Tip 2: resell
After receiving the returned goods by the manufacturer or seller and appropriate classification, it should be available again in the online store as soon as possible. This is because storage costs can be minimized. However, if you do this process manually, it can take several days to weeks depending on the weight.
Therefore, the use of artificial intelligence is helpful here, explains Konstantinos Vasiadis: Thanks to the intelligent system, the products entered can be automatically sorted and processed in such a way as to meet the needs of potential buyers.
Tip 3: Packing and Loading
“Business with B / C goods, returns or inventory overhangs is usually very unreliable,” says the expert. Therefore, artificial intelligence should not only be used in the best possible way when picking up and reselling goods, but also when packing and loading devices.
For example, systematic packing and loading using artificial intelligence allows for much more efficient handling of goods and without loss of quality. Online retailers not only ensure fast and smooth processes, but also waste less storage space – in their own warehouse as well as in trucks. This saves storage costs and, thanks to efficient loading, drivers have to travel less – which is ultimately good for the environment as well.
Are you interested in buying or selling returned goods to make your business even more profitable? Contact Konstantinos Vasiadis from Elvinci.de GmbH now and make an appointment!
Original content from: Elvinci.de GmbH, provided by news aktell