Investment in the growth sector of circular economy: D2C ReCommerce from the Weltbild D2C Group gives returns a second life and grows double-digit. The success is based on a wide network of buyers, smart technology, and high standards in processing.
At the latest during the “Black Friday” and the “Cyber Week”, the hot phase of the pre-Christmas period begins. While forward-looking online retailers already prepare for it after the summer, only a few have a strategy for dealing with the expected flood of returns after the holiday. The solution to the problem has a name: ReCommerce, specialized companies that buy up surpluses and returns and develop their own business model.
That’s exactly what D2C ReCommerce does. The company is part of the Weltbild D2C Group since this year and was now renamed D2C ReCommerce (www.d2c-recommerce.com) to emphasize the affiliation with the group. So far, the company, which operates a fully automated warehouse with 49,000 pallet spaces in Falkensee (Brandenburg), has saved over 6 million products from being scrapped.
Sustainability in focus
Christian Sailer, CEO of Weltbild D2C Group and also Managing Director of D2C ReCommerce: “The ReCommerce sector is an important growth market for us. Circular economy and sustainability are important reasons for our commitment, as a more resource-efficient use of resources will increasingly shape our lives.”
Philip Unrein, Managing Director of D2C ReCommerce: “Our goal is to reduce waste. It is still common practice that returned items and overstocks are not reused but disposed of. Why? Many companies do not know that there is a good alternative. We help companies to give their returns a second life. In this way, we contribute to a sustainable circular economy and reduction of CO2 emissions with every single item”.
Future Market: D2C ReCommerce with 15 Percent Growth
Establishing more sustainability in e-commerce is central to the goals of D2C ReCommerce. Philip Unrein emphasizes: “The fact that we have a very successful solution and a business model with potential is evidenced by our growth rate of 15 percent compared to the previous year.”
The business model: D2C ReCommerce stands for the reselling of used, new or even defective products and devices. These are inspected before being resold and, if necessary, repaired or prepared. In this way, they return to the consumption and reuse cycle.
New: Intelligent, digitally supported returns processing and marketing
For over 15 years, the now 100 employees of D2C ReCommerce, based in Berlin Oberschöneweide, have specialized in this area. They have the expertise, resources, software solutions, and processes to effectively tackle returns problems.
What used to be primarily a “manual” business has been further developed by D2C ReCommerce. Philip Unrein: “Our competitive advantage is that we rely on digitalization and AI. This makes us fast, helps us to process large quantities of returns and excess inventory, and reduces the error rate.” D2C ReCommerce not only makes the sale of returns and overstocks easier, but also more profitable and faster.
Advantages for online retailers
This is beneficial for both parties: the retailers who want to clear their returns inventory, and D2C ReCommerce, which takes on this task. The market is large: an estimated 500 million shipments with more than 1 billion items are returned in online retail each year, according to a study by the University of Bamberg. With traditional sales to large buyers, such goods often fetch less than 10 percent of their original value. Unrein: “Working with us can help avoid losses from returns that can significantly impact a company’s balance sheet.”
A more sustainable approach to returns and their reintegration into the consumer cycle also offers a good approach for online retailers to position themselves positively. Unrein: “Effectively utilizing returns and extending the product lifecycle can help a company stand out from the competition.”
Customers are driving the ReCommerce boom
But ReCommerce is not only more profitable for retailers. Customers also appreciate this reselling method. They benefit not only from low prices but also more and more customers are actively looking for products that counteract the “throwaway society” according to recent studies.
For more information: www.d2c-recommerce.com
About the Weltbild D2C Group
The Weltbild D2C Group (approx. €500m in sales in 2020) with its brands Weltbild, teNeues, Kinderwelt tausendkind, Gärtner Pötschke, Orbisana, Jokers, bücher.de, D2C digital/Papagei and D2C ReCommerce is one of the largest multi-channel retailers in the media and non-media product segment in the DACH region. The Weltbild brand acts as a multi-channel provider (catalog, online, physical stores, and social media) and enables shop-in-shop strategies for its own and partner brands with complementary product ranges. Weltbild creates theme worlds for its customers, which combine publishing products and selected non-media product ranges. The Weltbild online shop was awarded the “Top Onlineshop 2022” seal for customer satisfaction by ServiceValue and Deutschlandtest. More information can be found at: www.weltbildd2cgroup.com
About the Droege Group
The Droege Group (established in 1988) is an independent investment and consulting firm, fully owned by the family. The company specializes in tailor-made transformation programs with the goal of increasing corporate value. The Droege Group combines its family business structure and capital strength into a family-equity business model. The group invests equity in “Special Opportunities” with a focus on medium-sized companies and spin-offs, as well as strategically in buy & build transactions. With the idea of “Implementation – to the highest standard,” the group is a pioneer in implementation-oriented corporate development. The entrepreneurial platforms of the Droege Group are aligned with long-term oriented mega trends. Passion for quality, innovation, and speed determines the company’s development. As a result, the Droege Group has successfully positioned itself in the market both nationally and internationally and is operationally active in 30 countries with its entrepreneurial platforms.
More information can be found at: www.droege-group.com
Contact:
Eva Großkinsky
Head of Corporate Communication
Weltbild GmbH & Co. KG
Tel. 0821 / 7004 55 55
eva.grosskinsky@weltbild.com