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For over a decade, GameStop has labored with B-Inventory to promote bulk portions of trade-in cellular units, tablets, and wearables via its B2B market GameStop Wholesale. Since its inception, {the marketplace} has facilitated the sale of tens of tens of millions of units 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} might be attributed to constant grading requirements and high quality assurance which have traditionally been performed manually. Not too long ago, nonetheless, GameStop determined to put money into automated system grading to make sure even higher requirements for each trade-in system. After partnering with The Phoenix Group the method now combines superior automated robotics-powered inspection with meticulous handbook checks, guaranteeing that each system meets the best requirements earlier than reaching consumers.
To study 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 could be good to study a bit about how a typical trade-in transaction with GameStop works. How does GameStop initially purchase the units?
JH: “We purchase units via our retailer trade-in program, which captures detailed system info on the level of trade-in. Within the retailer, we conduct handbook grading and useful testing to evaluate the system’s situation. The trade-in worth is then offered by our system primarily based on this evaluation.”
How is the in-store testing performed?
JH: “The in-store testing is complete and consists of over 20 totally different exams. These embody checking the Discover My iPhone (FMIP) standing, verifying all element connections, and assessing the battery well being degree. The take a look at outcomes are then saved in our system and linked to the unit’s serial quantity.”
And what choices do prospects have for receiving their payouts?
JH: “Prospects have the pliability to decide on between receiving money or retailer credit score for his or her trade-ins. Retailer credit score worth is larger than money, incentivizing prospects to make future purchases with GameStop. This enables prospects to pick out the choice that most closely fits their fast wants.”
How do the units get to your central processing facility for the following steps?
JH: “Shops ship to our Refurb Operation Heart, also referred to as the ROC, on a weekly foundation. This ensures that units are effectively transported to our central processing facility and made obtainable on the market to our prospects 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 put money into 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 put money into automation was pushed by the necessity for enhanced consistency and to mitigate the impression of human elements on the standard of the inspection course of. Trustworthy errors might be made when persons are solely performing the grading, like lacking a small scratch on a telephone display screen or lacking a small chip on the nook of a pill. The outcomes from our automated system have proven vital enhancements and a constructive return on funding.”
How did GameStop first find out about and interact the Phoenix Group?
JH: “We first realized concerning the Phoenix Group via market analysis performed 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 offered on this tech instantly? Was there a pilot program?
JH: “We had beforehand performed a pilot program with one other vendor, so after we engaged with Phoenix Group, we had been already conversant in the expertise. Phoenix Group was capable of reveal its high quality successfully throughout the demo and preliminary pilot take a look at run, which solidified our resolution to maneuver ahead with them.”
How are system grades given and recorded?
JH: “Through the receiving stage, the system reads and prints the system’s serial quantity on a sticker, which serves as an indicator for scanning all through the method. The software program additionally information different system info, together with mannequin, IMEI, reminiscence measurement, FMIP standing, system service, and service blacklist standing. This info is saved within the system and linked to the system’s serial quantity.
On the ultimate station, the system combines the outcomes of useful exams, acquired system info, and robotic grading. Utilizing our grading desk, the system calculates and determines the ultimate grade consequence for every system.”
What precisely does the robotics system take a look at when grading units?
JH: “The robotics system at our manufacturing facility is concentrated solely on beauty grading, as we have already got a complete testing answer in place on the retailer degree. 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 consult with 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 prospects.”
Except for grading, what different duties are these robots at present dealing with for GameStop?
JH: “Except for grading, the robots are at present dealing with the duty of bodily cleansing the units 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 primarily based on buyer suggestions and information, which mirror buyer retention charges. Moreover, we assessment 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 prospects. 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 present exploring alternatives to additional automate our processes to reinforce effectivity, together with duties associated to packing, sorting, and transportation inside the facility. Nevertheless, any adjustments might be applied 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 enlargement of our automation and robotics capabilities will result in even better efficiencies in our processing operations. This can additional improve the standard of our companies and provides us a chance to develop into further 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 system grading and processing. This pattern could encourage different gamers available in the market to put money into related applied sciences, resulting in widespread enhancements within the total {industry}.”
How has the connection between GameStop and B-Inventory shifted extra not too long ago? 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 units on the secondary market?
JH: “We’re excited concerning the developments we’ve made on this area. Automated robotic grading and system cleansing guarantee consistency for our prospects. 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 progress 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 system undergoes to make sure exact and dependable grading, watch the video:
To study extra about B-Inventory’s B2B resale options for trade-in and preowned cellular units, wearables, and tablets, go to our web page for cellular sellers.
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