Do you need to streamline reverse logistics services for games consoles and improve the associated efficiencies and customer satisfaction?
Ingram Micro Lifecycle works with retailers, manufacturers, insurers, and leasing companies to responsibly manage the returns process, repair and refurbishment, recommerce, and recycling for consumer electronics.
In this article, we’ll explain the benefits of working with a reverse logistics operator for game console returns, repair, refurbishment, and recommerce, and what to look for when outsourcing.
Since the ‘70s, video gaming has expanded to cover multiple brands, designs, and functionalities. Home consoles are complemented by handheld consoles, hybrid models, and virtual reality products.
Cartridge readers have evolved into disc drives, which have been joined by digital media backed by online storage, cloud gaming, and subscription models.
The global value of the gaming console market is predicted to reach $26.7 billion by 2029, following a consistent annual rise from $16.4 billion in 2018. Market growth jumped in 2020 following a surge in demand.
So, what happens to these millions upon millions of units when they become faulty or are no longer wanted?
Are these products destined to become e-waste, or can they be resurrected?
To avoid units becoming e-waste, there are several ways reverse logistics supports lifecycle extension and enables a circular economy. Screening and testing of these units route the products to repair and refurbishment, or responsible recycling.
These may be unopened, Brand New Open Box (BNOB), or used products. They re-enter the supply chain through the following means.
Trade-in programs may be offered by retailers or manufacturers. The consumer can trade in their obsolete or unwanted game console to receive money back. They can use these funds towards a new purchase, perhaps the newest console model.
Brand-new consoles may be DOA (Dead on Arrival), faulty, no longer wanted, or the buyer may experience a change of mind. These products, if meeting the eligibility criteria under the return policies, can be returned to the original point of purchase.
Damaged or broken game consoles may be covered by home or gadget insurance policies. A claim can be made for the repair of these or replacement if the console is BER (Beyond Economic Repair).
Insurance policies may also cover lost and stolen game consoles. Although the console doesn’t re-enter the supply chain, these policies may offer a like-for-like replacement. These policies support the circular economy as they can draw on refurbished goods rather than adding pressure on manufacturing brand-new goods.
In these scenarios, the product re-enters the supply chain for screening, repair, refurbishment, recycling, or reuse on the secondary market, avoiding landfill sites. The lifecycle of the unwanted product is extended and reused where possible. BER products will be harvested for parts for use in the lifecycle extension of similar products or recycled. These processes should minimize waste and focus on reusing as many parts, materials, and peripherals as possible.
To ensure successful value uplift and lifecycle extension of gaming console returns, you need an experienced partner. Choosing to outsource rather than insource these services ensures your teams can focus on core business strategies, without diverting valuable resources to supporting new business areas.
Here are the recommended qualities to seek when finding a suitable partner to outsource your games console reverse logistics services.
After receiving the game console, the supplier will conduct a first-level eligibility check. For insurance claims and product returns, the purpose of this is to ensure the device is as the claimant has declared. This includes an anti-fraud and non-genuine parts sweep.
Screening and testing checks for cosmetic and functional damage to route the product through the appropriate repair and refurbishment services.
The handler must have the training and knowledge to ensure the checks and screening are accurate. Failing to filter out non-genuine claims or misrouting products leads to financial loss.
The supplier should use a variety of technologies and processes to restore consoles that have a wide range of faults and damage. The market comprises various manufacturers and products, so one solution won’t apply to all products. Through combining extensive solutions, they will achieve increased repair yields across models. A wide array of solutions will also enable the recovery of the highest maximum value from the product.
For cases where the end user expects the repair of the same unit or a refurbished, like-for-like replacement, you must be sure the standard will meet their expectations. Poor quality repairs will lead to dissatisfied consumers.
Look for solutions that are delivered using automation, technical know-how, extensive experience, and formal processes. These will be more likely to achieve fast turnaround times without compromising quality. High TATs are important for customer resolution, particularly in returns or insurance cases, and work to combat product depreciation ahead of resale.
A partner with financial stability, the ability to invest, and extensive geographical coverage will be in a good position to grow their operations. They will have the agility to scale their solution as your offering and demand grow. This is also important in instances such as when seasonality affects volumes. An inexperienced partner without the capacity to support scale may become swamped in peak returns season, such as post-Christmas or following a new product release.
The partner must have the processes and technology in place to maximize the recovery of parts. Where a product is BER, harvesting parts enables waste reduction, but the parts must be carefully removed to ensure reuse. An experienced partner will harvest more parts and components compared to one without less technical know-how.
They should also have the processes for cleaning and storing accessories and peripherals, ready to re-kit products with refurbished goods, rather than drawing on brand-new ones.
Creating a supply of used parts and refurbished products lowers the overall cost of repair and replacement.
After recovering the game consoles to a reusable condition, the partner should have exit channels to move them forward. As well as providing you with a supply of refurbished goods for sale, the partner should have access to global recommerce networks and resale partners. Through these, they can achieve value recovery for you. A poor forward network can lead to product depreciation and loss of investment.
A partner capable of providing a full end-to-end solution will bring everything under one roof. There’ll be fewer resource leakages from liaising with multiple partners for different parts of the process. These should include fulfillment for BER/lost & stolen products and contact center support. Technically-trained agents can liaise with the end-user customer on your behalf or provide timely updates to your agents.
To ensure compliance with national and international data protection laws, you must take steps to ensure that consumer data is protected. A partner will use the OEM factory reset solution to remove all personal data and history from the game console.
The game console market is steadily growing, with new technology entering the playing field every year. Returns management and recovery solutions for this technology need to innovate to ensure a circular approach that reduces volumes from entering landfill sites. Outsourcing to a partner with market-leading solutions, extensive knowledge and experience, great recommerce channels, and high yields boosts market sustainability and makes cost savings.
Ingram Micro Lifecycle supports multiple retail, manufacturer, and insurance customers with sustainable and cost-effective solutions for game console disposition and repair. We offer a complete end-to-end solution for game console returns management, recovery, and recommerce, including contact center and fulfillment solutions.
Ready Player One? Get in touch with us today to be your Player Two in unlocking your next achievements in game console sustainability and cost recovery.