New solution to solving the returned products issue
Products which are sent back are no longer in their original wrapping, are slightly damaged or no longer work the way they should. They often are a thorn in the side of e-commerce companies, because products lose value and take up a lot of space. What happens with these products? They are sold to traders by the bulk. These traders then find a solution to get rid of them as quickly as they can by selling their spare parts or selling them as a product that malfunctions.
A new life
BuyBay offers returned products a new life. Usually they are great products that just need a little work done to be able to be put back on the market. BuyBay takes a good look at each product separately and takes professional product shots. For each individual product, a strategy needs to be determined in order to maximize its residual value. Broken products will be repaired when possible. BuyBay has their own furniture maker, for instance, to make that happen. After these repairs, they are sold to the consumer as second hand products. BuyBay delivers a complete solution and takes care of logistics, storage, customer service and the most important thing: selling returned products.
Higher profits & sustainable
With their own complex software, which they developed based on years of experience in e-commerce, BuyBay automatically puts products up for sale on the platform where they are likely to generate the highest profits. That means BuyBay automatically ensures the highest value for these returned goods. To clarify this: e-commerce companies usually only get a part of the original value of the product when they are returned. BuyBay is able to make that a much higher percentage, thanks to their technical and operational solutions.
With these higher profits, BuyBay immediately achievs bottom-line results for its clients. Clients at BuyBay need less staff and receive commission when BuyBay sells their products on their platform. BuyBay also lengthens the lifecycle of products considerably. It’s a win-win-win-win situation, for BuyBay, for the companies they came from, for the consumer and for the environment.
BuyBay is a start-up that was founded by Thijs Bosgoed and his brother Erik in 2014. Both played a key part in setting up and professionalizing Groupon in Europe. Their head office has recently moved to The Curve, which is situated at the NDSM-wharf. BuyBay now employs over 50 ambitious professionals. The start-up is growing so fast that their own website had to go offline. Due to the fast development of the company, new information was always outdated within a few days’ time. They are currently looking for a solution. Besides their main office in Amsterdam, BuyBay also has their own distribution center in Heteren, near Arnhem. A new warehouse will be added soon, near the German border, which will allow them to provide their services both on the Dutch and the German market. BuyBay has already convinced the top of the e-commerce market. And after their success in the Netherlands, they will be taking BuyBay abroad, starting with Germany.
Fortino Capital’s multi-million Euro investment
At the end of February BuyBay announced to have received millions in investment funds from Fortino Capital, an investment group owned by Belgian business families. In the Financieel Dagblad, the Dutch Financial Times, Fortino Capital was quoted stating they viewed BuyBay as representative of a new sector in development at the backend of the classic retail market. Duco Sickinghe, the Dutch managing partner for Fortino Capital, has a great deal of confidence in BuyBay: “Their financial profile sets them apart from other start-ups. They don’t hemorrhage money and that’s where they distinguish themselves from many other start-ups which incur losses until having reached critical mass.” Moreover, Sickinghe seems unfazed by the competition: “There aren’t many players in this sector that recycle return products back into the consumer market.” In return for the capital injection Fortino receives a small minority share in BuyBay. Read the complete coverage on FD.nl.
Due to BuyBay’s rapid growth, no day is the same. BuyBay adheres to a flat organizational structure combined with a dynamic work environment. Everybody has a great deal of responsibility and new initiatives are encouraged; this results in every employee having considerable influence and direct impact on the company’s operating profit. Initially, you’ll get thrown into the deep end, but colleagues are more than willing to help you out. There’s a casual working atmosphere at BuyBay in which hard work is combined with quick development.
Part of something great
After their strong growth as a start-up in the Netherlands, BuyBay is starting to look across the border. The initial steps will be taken in Germany and the rest of Europe is soon to follow. They have a proven business model backed by strong funding and they’re paving the way towards becoming a larger, fully matured organization. New talent is constantly being brought in and will become a part of BuyBay’s great transition towards becoming one of Europe’s major players.