What’s a retail trade-in program? A retailer offers to exchange a used item from a customer for credit towards a new purchase. These initiatives keep customers engaged with the brand and drive new sales – often accelerating repurchase. Several industries have come to rely on this process as a critical acquisition and retention tool. Why? Because it works.
An industry that has capitalized on trade-ins for years is the automotive industry. Since most vehicles outlive their usefulness to an owner, automotive companies make buyback offers. For some models, this circular process drives as much as 75% of new sales.
Tech companies use trade-ins to encourage upgrades too. For example, Apple offers incentives to return previously purchased phones for newer models. These trade-in programs often lead consumers to upgrade their devices earlier than anticipated. These compelling programs strengthen brand engagement, adding even more value to loyalty.
Among retailers, sporting goods stores were early adopters of trade-ins. For example, Dick’s and Play It Again Sports encourage customers to trade-in used items for store credit. This tactic has proven to be very successful, both for the customer and the retailer.
The time is now for clothing retailers to figure out their trade-in strategy. Fashion retailers see they are leaving money on the table, missing a customer pain point, and creating opportunities for other brands to insert themselves into their customers’ closets. There are a variety of different entry points for trade-ins. Each retailer should consider how to best leverage strategic sustainability in a way that is strategic, profitable, and brand enhancing.
Furniture and homegoods retailers are laggards when it comes to trade-ins. While there is a resale market, originating retailers have yet to benefit from it. Rohvi’s platform is extendable to these retailers as well. It opens up new opportunities and strengthens existing relationships.
Rohvi's retailer trade-in platform is the perfect solution for companies looking to test into or expand their trade-in programs. Using trade-ins to drive sales is a tried and true technique. It’s time for clothing and home retailers to benefit from this exchange.