A few years ago, Amazon launched a service model that involved selling products that have been returned due to customer cancellations, poor packaging, defects or a failure to meet customer expectations, selling at more competitive prices while retaining the product warranty.
Formerly known as the Amazon Warehouse Model, this model is now called ‘Amazon Segunda Mano’ (Amazon Second Hand) in Spain.
Amazon Second Hand is a new, economically sound approach that guarantees the recovery of a large part of the value of returned items. It has now been made a key part of the company’s circular economy engagement, not least because of its strong appeal to its customers. In 2023, Amazon decided to enhance this service following a customer survey that revealed that 88% are willing to adopt a more sustainable shopping approach. This allows Amazon to contribute towards extending the useful life of goods, making the most of natural resources and supporting a sustainable economy.
The service developed by ANOVO for Amazon Segunda Mano was based on several actions that have had an immediate effect on the circular economy, including:
- Performance screening: This service determines which products are suitable for repair and which are not. This involves a pre-sorting process that assigns each product to the most appropriate path, i.e., repairable products continue through the reconditioning and repair process, while non-repairable products are either recycled or their components are used for other repairs. This optimisation is the foundation of the circular economy, which promotes reuse or recycling once a product reaches the end of its useful life and tries to give a second life for those products that can be reintroduced into the market.
- Repair and reconditioning: The application of manufacturer-defined processes and ANOVO’s own technological expertise ensures a very low failure rate and, therefore, a lower number of returns, thus increasing customer satisfaction. This significantly reduces the number of returns due to customer dissatisfaction, also reducing the logistical and environmental cost associated with returning the product to Amazon. Ultimately, the carbon footprint of the process is reduced.
- Classify the level of reconditioning according to its condition: Classifying the final state of the product in great detail ensures that the customer receives detailed information, thereby improving customer satisfaction with the product. As a result, it further contributes towards the objective mentioned in the previous point.
- Traceability: ANOVO provides AMAZON with traceability for all the processes carried out on each of its products. This way, the product can be offered for sale immediately by AMAZON Segunda Mano without having to go through the processes of re-sorting and logistical preparation again. This is similar to the process for a new product from a supplier or distributor. This saves resources and optimises processes without compromising product quality.
The collaboration between AMAZON and ANOVO is an example of companies coming together to move towards a circular economy and contribute towards economic and social development. This is achieved by reducing emissions, extending the useful life of products and driving new business models aligned with a sustainable economy.