According to theBrazilian Association of Electronic Commerce (ABComm), e-commerce in Brazil grew 27% in the last year, moving around R$186 billion. The expectation is that by the end of 2024 this amount will reach R$205,11 billion, with 418,6 million orders, and a number of buyers that can reach 91 million
UmstudyInvesp reveals that 30% of products purchased online are returned, a number much higher than that of physical stores, where the return rate is 8,89%. This high return rate not only represents a logistical and financial challenge for companies, but it also generates a considerable environmental impact
As the CEO of the online auction platform Kwara explains, Thiago da Mata, The increase in demand from online buyers results in a significant volume of returns, making effective management of these items essential. Executing the sale of reverse logistics goods through auction becomes a quick and transparent solution to manage the return of these products efficiently, profitable and ecological. That is to say, with the exponential growth of e-commerce, product returns have increased significantly, driving the practice of reverse logistics, an essential tool for sustainability and operational efficiency.
Why reuse auctions are effective
The researchE-commerce Trends 2024”, conducted by Octadesk in partnership with Opinion Box, shows that most consumers started shopping online in the last five years. Among the interviewees, 64% stated that the frequency of purchases has increased in the last 12 months, with 85% shopping online at least once a month and 62% making up to five purchases monthly.
This growth in the number of purchases and new adherents to the online model is directly linked to the increase in the volume of product returns, reinforcing the importance of sustainable solutions.This practice not only relieves the logistics centers, as well as providing consumers the chance to buy products with discounts of up to 90% compared to the market reference price, encouraging more conscious consumption.”, affirms Thiago
Instead of discarding the returned products, many companies choose to auction these items, offering consumers the opportunity to purchase products that never reached their final destination at reduced prices. Для підприємств, this practice allows for the quick recovery of part of the invested amount, in addition to reducing the accumulation of goods in distribution centers. This also promotes the circular economy, reducing waste and promoting sustainability
Reverse logistics auctions and ESG practices
Asset recovery auctions not only minimize environmental impact, as they are also aligned with ESG (Environmental, Social, and Governance, promoting transparency and efficiency in resource management. According to the Reverse Logistics Institute, the implementation of an effective program can reduce material waste by up to 30%, promoting a more efficient management of resources.
For the Forest, the companies that adopt these solutions demonstrate a strong commitment to social and environmental responsibility, strengthening your image before an increasingly attentive audience to ESG practices. "By giving a lasting destination to the returned goods", companies strengthen their environmental and social responsibilities, meeting the expectations of consumers who value environmental preservation
According toMcKinsey & Company, 60% of consumers are willing to pay more for sustainable products, highlighting the importance of integrating technology into business models
In addition to the environmental benefits, returned product auctions offer financial advantages. Companies can recover part of the invested amount, while consumers have access to competitively priced products in the secondary market. This practice also aligns with governance principles, that prioritize transparency and efficiency in resource management
How reverse logistics auctions work
In reverse logistics auctions, items that would be discarded, like electronic equipment, furniture, industrial machines and various other types of items are recovered by companies and put up for sale at auctions, that mainly occur on specialized online platforms, connecting buyers to these assets quickly and efficiently.
"By adopting deactivation strategies using the online auction tool", companies have the opportunity not only to free up capital quickly, but also to optimize your resources effectively. Auctions provide a dynamic and global platform that allows companies to reach a wide base of potential buyers, maximizing the value of your assets. It is an essential approach for companies seeking agility, efficiency and profitability in a constantly evolving competitive market.”, comment the CEO.
For Thiago, "by disbanding assets through online auctions", companies create a process that can become recurring, in addition to outsourcing the marketing and even inventory and collection processes. Furthermore, the auction format allows companies to create a sales cadence in a way that minimizes the risk of items sitting in stock, transforming idle assets into liquid capital quickly and efficiently
With an increase of 16,5% in the number of online stores in 2023, that now total more than 1,9 million, accordinglifting"Profile of Brazilian E-Commerce",reverse logistics and its auctions become even more essential to ensure that the growth of e-commerce in Brazil follows a sustainable and profitable path. Therefore, this practice is vital for companies looking to expand in e-commerce responsibly, contributing to the circular economy and integrating ESG practices that meet consumer demands, of the company and the investors, concludes Thiago
