For over a decade, GameStop has labored with B-Inventory to promote bulk portions of trade-in cellular gadgets, tablets, and wearables via its B2B market GameStop Wholesale. Since its inception, {the marketplace} has facilitated the sale of tens of thousands and thousands of gadgets to enterprise consumers throughout the globe and allowed GameStop to maximise pricing and quantity of gross sales.
A lot of the success of {the marketplace} could be attributed to constant grading requirements and high quality assurance which have traditionally been carried out manually. Lately, nonetheless, GameStop determined to spend money on automated gadget grading to make sure even higher requirements for each trade-in gadget. After partnering with The Phoenix Group the method now combines superior automated robotics-powered inspection with meticulous handbook checks, guaranteeing that each gadget meets the very best requirements earlier than reaching consumers.
To be taught extra, we sat down with Jon Haes, GameStop’s Vice President and Head of Pre-owned Enterprise, to ask just a few questions on this new initiative.
To set the stage, it might be good to be taught a bit about how a typical trade-in transaction with GameStop works. How does GameStop initially purchase the gadgets?
JH: “We purchase gadgets via our retailer trade-in program, which captures detailed gadget info on the level of trade-in. Within the retailer, we conduct handbook grading and practical testing to evaluate the gadget’s situation. The trade-in worth is then offered by our system based mostly on this evaluation.”
How is the in-store testing carried out?
JH: “The in-store testing is complete and consists of over 20 totally different assessments. These embody checking the Discover My iPhone (FMIP) standing, verifying all element connections, and assessing the battery well being stage. The check outcomes are then saved in our system and linked to the unit’s serial quantity.”
And what choices do clients have for receiving their payouts?
JH: “Prospects have the flexibleness to decide on between receiving money or retailer credit score for his or her trade-ins. Retailer credit score worth is greater than money, incentivizing clients to make future purchases with GameStop. This permits clients to pick out the choice that most accurately fits their rapid wants.”
How do the gadgets get to your central processing facility for the subsequent steps?
JH: “Shops ship to our Refurb Operation Middle, also called the ROC, on a weekly foundation. This ensures that gadgets are effectively transported to our central processing facility and made accessible on the market to our clients on B-Inventory as quickly as potential after trade-in.”
What was GameStop’s grading course of like main as much as this new initiative to spend money on automation and associate with The Phoenix Group?
JH: “Previous to this new funding in automation, GameStop’s grading and processing relied on handbook inspection carried out by associates. Whereas we maintained constant requirements, the choice to spend money on automation was pushed by the necessity for enhanced consistency and to mitigate the affect of human elements on the standard of the inspection course of. Sincere errors could be made when individuals are solely performing the grading, like lacking a small scratch on a telephone display or lacking a small chip on the nook of a pill. The outcomes from our automated system have proven important enhancements and a optimistic return on funding.”
How did GameStop first find out about and interact the Phoenix Group?
JH: “We first realized in regards to the Phoenix Group via market analysis carried out as we evaluated a number of distributors. We selected Phoenix Group as a result of its companies and options finest aligned with our personal enterprise wants and necessities.”
Was GameStop bought on this tech instantly? Was there a pilot program?
JH: “We had beforehand carried out a pilot program with one other vendor, so once we engaged with Phoenix Group, we had been already aware of the expertise. Phoenix Group was capable of display its high quality successfully throughout the demo and preliminary pilot check run, which solidified our choice to maneuver ahead with them.”
How are gadget grades given and recorded?
JH: “Throughout the receiving stage, the system reads and prints the gadget’s serial quantity on a sticker, which serves as an indicator for scanning all through the method. The software program additionally information different gadget info, together with mannequin, IMEI, reminiscence measurement, FMIP standing, gadget provider, and provider blacklist standing. This info is saved within the system and linked to the gadget’s serial quantity.
On the ultimate station, the system combines the outcomes of practical assessments, acquired gadget info, and robotic grading. Utilizing our grading desk, the system calculates and determines the ultimate grade end result for every gadget.”
What precisely does the robotics system take a look at when grading gadgets?
JH: “The robotics system at our manufacturing facility is targeted solely on beauty grading, as we have already got a complete testing answer in place on the retailer stage. The robotic grading course of identifies scratches, chips and cracks in addition to dents and harm to the chassis.”
Does GameStop adhere to an industry-standardized grading system?
JH: “We seek advice from and evaluate industry-standard grading standards, together with benchmarks from the market like CTIA and different companies, to find out our grading requirements. Whereas we base our standards on these requirements, we’re open and keen to share our grading standards with our clients.”
Except for grading, what different duties are these robots at the moment dealing with for GameStop?
JH: “Except for grading, the robots are at the moment dealing with the duty of bodily cleansing the gadgets in order that they’re tidy and sanitized earlier than packing for resale.”
How is GameStop measuring the success of this roll-out?
JH: “We measure the success of this roll-out based mostly on buyer suggestions and information, which mirror buyer retention charges. Moreover, we overview our Return Merchandise Authorization (RMA) metrics to evaluate efficiency and establish areas for enchancment.”
Are you able to give any figures round how this automation initiative is enhancing efficiency?
JH: “One of many key metrics indicating the success of our automation and robotics initiative is the consistency of grading outcomes, which has been highlighted as the highest suggestions from our clients. This consistency has been essential in enhancing total efficiency and buyer satisfaction.”
What duties does GameStop hope to automate within the close to future?
JH: “We’re at the moment exploring alternatives to additional automate our processes to boost effectivity, together with duties associated to packing, sorting, and transportation inside the facility. Nonetheless, any adjustments shall be carried out provided that there’s a robust enterprise case.”
The place do you see this automation initiative heading sooner or later, each for GameStop particularly and for the cellular secondary market as an entire?
JH: “For GameStop particularly, we anticipate that the continued growth and growth of our automation and robotics capabilities will result in even better efficiencies in our processing operations. It will additional improve the standard of our companies and provides us a chance to increase into extra merchandise.
For the cellular secondary market at giant, the adoption of automation and robotics is prone to set new requirements for effectivity and accuracy in gadget grading and processing. This pattern might encourage different gamers available in the market to spend money on related applied sciences, resulting in widespread enhancements within the total {industry}.”
How has the connection between GameStop and B-Inventory shifted extra just lately? Has this automation initiative affected this partnership in any respect?
JH: “The automation and robotics initiative has strengthened our partnership with B-Inventory by enhancing our processing capabilities and total effectivity. This alignment permits us to supply extra constant and dependable trade-in options, benefiting each our personal operations and our partnership. It additionally opens alternatives for integration between our system and B-Inventory’s system, which is able to improve accuracy and effectivity all through the end-to-end course of.”
Any final phrases about GameStop’s operations, mission, objectives, or future in the case of the pre-owned cellular gadgets on the secondary market?
JH: “We’re excited in regards to the developments we’ve made on this area. Automated robotic grading and gadget cleansing guarantee consistency for our clients. As well as, our partnership with B-Inventory permits us to leverage a top-tier platform to drive worth again to GameStop when it comes time to resell the product. We see the cellular class as a key development space for our firm and our processing developments and partnerships within the area present us a stable basis that we are able to proceed to lean into to drive the enterprise.”
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For an inside take a look at the rigorous multi-point inspection that every gadget undergoes to make sure exact and dependable grading, watch the video:
To be taught extra about B-Inventory’s B2B resale options for trade-in and preowned cellular gadgets, wearables, and tablets, go to our web page for cellular sellers.