The second-hand business at Digitec Galaxus is booming

Who at Digitec and Galaxus in the secondhand sector rummaging around for bargains will find not only returns declared as "used + tested" or "as good as new + tested" but also second-hand offers from customers. Since the fall of 2017, customers have been able to resell products purchased from Digitec and Galaxus at the same location - whether it's a dusty cell phone, a last-generation game console, or a deck chair that no longer fits on the new balcony.

According to Digitec Galaxus, more and more online shoppers are making use of this resale option: in 2020, they sold 96 percent more used items. And this year there are signs of further strong growth: In the first half of 2021, two-thirds as many second-hand products were sold by private individuals as in the whole of 2020.

With this option, Digitec Galaxus wants to give various products a second life and make a contribution to the environment. "Because we offer this simple, fast and secure option for second-hand sales, fewer used products end up in the trash or recycling garbage can," explains Zara Hegemann, Product Owner at Digitec Galaxus and responsible for the resale function.

For reasons of competition, Hegemann does not want to give any details on units sold or second-hand sales. But she does reveal other figures. For example, the proportion of second-hand sales at Digitec and Galaxus: around 75 percent of sales in 2020 took place at Digitec, and 25 percent at Galaxus. "The secondary market for electronics has definitely established itself at Digitec," says Hegemann. However, the share of secondhand sales at the Galaxus online department store is growing fast: in 2019, it was only 18 percent.

44 percent success rate

Of the second-hand offers from Digitec and Galaxus customers, an average of 44 percent find a buyer in the current year. The remaining 56 percent of sales offers expire, for example because the price of the used ping-pong table was too high, or because the cell phone has a deep scratch across the display. "The 44 percent is a remarkable rate," says Hegemann.

She speculates that this is probably due to the high proportion of electronics in the offers. After all, she says, used cell phones are more attractive than, say, a used closet. "On the other hand, the offers generally get a lot of attention here thanks to the high customer frequency." In 2020, more than two million customers shopped at Digitec or Galaxus.

The highest success rates were achieved in 2020 by customers who had sold the following products:

• Fan controller: 77%
• Pulse belt: 77%
• Webcam: 76%
• External optical drive: 75%
• Cell phone VR glasses: 75%
• Stylus: 75%
• Headphone stand: 73%
• Streaming Media Player: 72%
• Notebook Pad: 71%
• Powerline: 71%

In absolute terms, however, Digitec and Galaxus customers sold mainly used cell phones last year, followed by PC monitors, graphics cards, headphones and notebooks.

Gritting teeth over service fees

The Digitec Galaxus community is generally satisfied with the offer. For example, the remaining warranty of the product - if still available - is also taken over, which pleases the users. Given the size of the Digitec Galaxus community, it is of course particularly attractive for resellers to offer their second-hand goods on a marketplace with many potential buyers.

Nevertheless, there are also points that users hope will improve in the future. On the one hand, the service fee - usually 10 percent - is relatively high, various customers write. This is a lot, considering that the sellers still have to pay shipping fees and other expenses.

Also, some successful resellers wait a comparatively long time for their money, as this is only triggered when the buyer marks the product as "received".

At the request of Advertisingweek.ch Alex Hämmerli is pleased with the feedback from the community. Referring to the widely complained about service fees, the Senior PR Manager comments: "Our commission is comparable to the brokerage fees of the competition, such as those of Ricardo. We also believe that our pricing model is fair, as the commission decreases with the amount of the sale price." With regard to the sometimes longer transaction waiting times, Hämmerli points to the calls that buyers* receive from Digitec Galaxus four days after shipping confirmation in each case. "If no confirmation follows, the buyer receives another reminder after another five days," he explains.

As it continues to develop, Hämmerli says Digitec Galaxus wants to make the entire process even easier - for both buyers and sellers.