Refurbished and profitable: how Kaufland puts used products back on the market
Sustainability is becoming increasingly important in online retail – and the Kaufland Global Marketplace re-commerce program opens up a new, fast-growing sales channel for refurbished products for online retailers. Those who already work with JTL benefit twice over: the Kaufland marketplaces can be easily connected via JTL-eazyAuction – including the new re-commerce category. Kathrin Nuhn, Senior Business Development Manager Marketplace at Kaufland Global Marketplace, tells us in an interview how the program works, which products are particularly in demand and what opportunities arise for retailers.
Hello Kathrin, could you briefly introduce the concept of your re-commerce program?
The Kaufland Global Marketplace re-commerce program was created as a targeted response to increasing customer demand in this growth segment. The concept enables retailers to tap into new international sales potential, facilitates access to refurbished products for a broad target group in Europe and guarantees the highest transparency and quality standards.
On all Kaufland marketplaces in Germany, the Czech Republic, Slovakia, Poland, Austria and soon also on the new marketplaces in France and Italy, the program gives retailers the opportunity to sell refurbished products in addition to new and used items. The offer of these products is linked to clearly defined standards and transparent quality communication with customers. This includes a detailed, standardized product description and the classification of products into the following categories:
Refurbished – like new
Refurbished – very good
Refurbished – good
Refurbished – acceptable
Uniformly prescribed quality checks by the marketplace retailers and a mandatory 1-year guarantee promise customers security in their purchase decision. Prominent offer placements make the refurbished products stand out from conventional used goods.
You launched the program at the beginning of the year. What are your experiences so far?
We always develop features and new services with the needs and feedback of our marketplace traders in mind. This pays off: Satisfaction with the new program is high and the feedback is consistently positive. We are seeing a steady increase in the number of merchants who qualify for the new program. Some of them are already using the new sales option on all five Kaufland marketplaces.
The re-commerce program offers retailers access to a new customer segment of price- and sustainability-conscious shoppers who are specifically looking for tested, refurbished goods.
What standards must retailers and the products meet?
To be approved as a retailer for our re-commerce program, the following standards must be met:
Description of the process: Detailed description of the reconditioning process of the products
Use of software and hardware diagnostic tools: For technical verification of full functionality
CE marking: Proof of CE marking of the refurbished products
Provision of a 12-month warranty: on refurbished products
What type of retailer benefits most from participating in this division?
All retailers – whether small or large – who sell products from the available ranges can benefit from the new re-commerce program! Admission to the program is quick and easy. Interested retailers can either get in touch with their personal contact person or contact our retailer support and provide the required evidence by e-mail or contact form. This means that even retailers with limited capacities can get started quickly and celebrate great success in no time at all.
Which products are particularly popular in re-commerce?
The electronics category is in high demand and reflects the current trend in the re-commerce sector. The following categories are particularly interesting:
Consumer electronics: smartwatches, cell phones, tablets, televisions, in-ear headphones, desktop PCs, routers, monitors, projectors, game consoles, game console controllers
White goods: tumble dryers, washing machines, fridge-freezers
We have therefore decided to initially only offer re-commerce products in these popular categories on the Kaufland marketplaces. Our focus here is on data-based further development: in addition to the continuous expansion of other product categories that are in high demand, we are also planning attractive marketing opportunities to offer retailers even more visibility and sales potential.
The re-commerce program is already available at all Kaufland marketplaces. Are there any regional differences that you had to take into account when developing the program?
On the contrary, the program – like our all-in-one solution Kaufland Global Marketplace itself – is designed for international use. We have deliberately developed a scalable solution that can be used equally on all Kaufland marketplaces. Only the regional differences in terms of legal conditions had to be taken into account individually when developing the program.
Would you like to learn more about international e-commerce with Kaufland Global Marketplace? In the expert talk we provide you with the necessary know-how including tax tips! Watch now for free!
This has the advantage for retailers that they can quickly and easily manage their offer, product and order data for their refurbished products seamlessly from one portal for all Kaufland marketplaces – just as they are used to doing for new products. The listing of products is possible via Marketplace Seller API and via CSV file/XML file. JTL merchants already have the option of easily transmitting offers and condition descriptions for all country marketplaces.
Based on this international orientation, we can also give all our customers the same promise of quality. The aforementioned standards for refurbished products and the conditions of participation for retailers apply equally to all Kaufland marketplaces.
Why did Kaufland decide to develop this re-commerce division? What observations within the industry are based on this?
Studies show that the market for used and refurbished products is experiencing strong growth: In 2021, the European market volume amounted to 75 billion euros. Forecasts indicate that it could grow to 120 billion euros by the end of 2025 (source: Statista). Interest in refurbished products is particularly strong in the electronics and household sectors.
The environmental benefits of re-commerce are very popular with customers who are interested in sustainable alternatives. For example, buying a refurbished smartphone can save up to 92% of CO² emissions compared to a new device (source: Statista). In addition, demand for cheaper alternatives increases in times of economic uncertainty (e.g. inflation). Legal requirements such as the “Right to Repair” and EPR regulations (extended producer responsibility) promote repairs, remanufacturing and sustainable consumption. Not only tech-savvy buyers, but also mainstream customers are increasingly accepting refurbished goods as an equivalent alternative to new goods.
We have developed our re-commerce program in response to the growing interest in sustainable, high-quality refurbished products. This new option opens up attractive sales opportunities for re-commerce retailers on Kaufland marketplaces.
What advantages does it offer retailers to become active in the sector?
Retailers can already reach a potential 81 million online customers via the five, soon to be seven, Kaufland marketplaces, and a potential total of 139 million from the launch of Kaufland.fr and Kaufland.it. For re-commerce retailers, this means that thanks to the new program, they can use an enormous reach to sell their products.
The re-commerce program offers retailers access to a new customer segment of price- and sustainability-conscious shoppers who are specifically looking for tested, refurbished goods. We put the refurbished products in the spotlight on the marketplaces in such a way that customers who are not explicitly looking for them can also be persuaded to buy them. The items are displayed on the product detail pages (PDP) so that customers can easily choose between new and refurbished items. The three highest quality condition types are given a premium placement to highlight the benefits of these products at a glance. The price advantage is also immediately apparent to customers.
The high standards that we attach to participation in the program offer customers security. The intensive testing in combination with the transparent description of condition and the 1-year guarantee creates trust and makes the purchase decision easier. In short: retailers who start with the re-commerce program on the Kaufland marketplaces secure the prospect of lucrative sales!
Thank you very much for the interview!
Whether refurbished or classic sales: With JTL-eazyAuction, you can manage your marketplace offers efficiently from one system and utilize the full potential of multichannel commerce. We will be happy to advise you – free of charge and without obligation!
