No matter where you live or what the season is, sporting goods and recreational equipment will always (re)sell well. In recent years, the sporting goods resale industry has seen tremendous growth. This is due in part to American consumers paying more attention to their health but not wanting to break the bank on a new treadmill. Historically, sporting equipment is one of the top items to resell for a profit. This opens up an incredible opportunity for you, as a reseller.
Before you start sourcing, let’s take a closer look at the category of secondary market sporting goods. What are the best practices and benefits of sourcing this type of product? Why do sporting goods get returned in the first place?
According to an Appriss study on consumer returns in the retail industry, the average return rate for sporting goods is just over nine percent. But, why?
Items are returned for a variety of reasons. The wrong size or style can be a factor when it comes to products purchased online (maybe the tent was too small or the stationary bike too big). Perhaps the customer felt that the product did not match the description, or maybe it just didn’t meet the customer’s expectations or do what it was supposed to do. The customer could have just changed his mind too (hey, it happens!).
Gifting is also a very common reason for a sporting good product to be returned. The customer may have received the item as a gift and he or she does not want it as it’s not the right color, style, or model.
Additionally, wardrobing is a reason-for-return. This is a specific type of consumer fraud where a customer buys an item and uses it for a one-time purpose with the intent of returning it.
A returned product to the retailer means a big opportunity for you, the small business buyer, as a lot of these products do not go back on primary shelves. These goods are typically sold by the truckload. A truck could contain any item found inside a big box or sporting goods store like sports and exercise equipment, activewear, and camping gear. A handful of our marketplaces offer liquidation sporting goods from top retailers including Walmart Liquidation Auctions, Target Auction Liquidations, Amazon Liquidation Auctions, and more.
Because sporting goods are already in high demand and can be expensive, buyers are looking for a good deal. Second-hand sporting goods stores exist for this very reason!
So whether you’re a new buyer or an experienced sporting goods small business, we’ve compiled some of our top pro tips for buying and reselling returned sporting goods.
Compare pricing: Before you bid on that lot of sporting goods, look up pricing on the current versions of those items. Make sure that even newer versions haven’t had a significant price drop due to a brand-new product being released. It’s important to do your research! Remember, you will need a good amount of discount to successfully resell the items.
Start small: If you’re just starting out buying and reselling sporting goods and fitness equipment, we recommend buying small lots to start.
Follow the rules: Be aware of any particular reselling rules from the retailer/manufacturer you’re purchasing from. In some cases, retailers or manufacturers will not allow you to resell the inventory in certain forums, online sites, geographic locations, etc. You can find these specific restrictions in an auction’s Terms & Conditions section (usually located at the bottom of the page).
Offer support: Whether it’s great customer support, a 30-day money-back guarantee, or even just fast response time to consumer questions, be sure to show your customers you care. This will establish you as a reputable and responsible business and bring back good customers.
Source smart: A good rule of thumb is, the lower the original value of the good, the harder it is to resell that item as used or refurbished. Higher end items that you’re offering at possibly half off of MSRP will be a hotter commodity.
In other words, the deeper the discount (in dollars) you offer, the easier it is to sell and move the item quickly.
Across B-Stock’s marketplaces, you’ll find a variety of sporting goods, outdoor equipment, and recreational items. Check out all of B-Stock’s current sporting goods auctions and begin your buying journey today!