Reselling second-hand products
Products are often used for just a fraction of their useful working lives. Products prematurely ending up in landfills increases the production of new products and the unnecessary use of natural resources. Retail outlets or brands do not, however, usually offer the option of recycling or buying back the products they sell. The consumer is often left responsible for the appropriate recycling of unwanted but usable products, which is not an optimum situation.
Solution: Reselling second-hand products
Varusteleka undertakes to buy back from customers used but intact products it has initially sold. The company resells the products it has bought back second-hand, thereby extending their service lives. Customer can return used products by post or take them to the firm’s outlet, and they are refunded through their Varusteleka customer account. The benefit received by the customer amounts to 50% of the original price of the product, inclusive of tax.
Varusteleka’s revenue model and benefits
The refund is credited to the customer’s customer account. The customer can only use the refunds on their customer account for purchasing Varusteleka products. The second-hand product is resold at a price half that of the original price, inclusive of value added tax. Recycling the product strengthens the relationship between Varusteleka and the customer, in addition to which the refund paid for the product redirects the customer to Varusteleka’s products.
Benefits to the customer and end user
The customer receives a refund for returning a used product that is no longer needed. The customer is given a guarantee at the time of purchase that they can return the product and receive a refund. It is easy for the customer to register the return: it is done through Varusteleka’s web shop with the help of an electronic receipt.
Varusteleka Oy in a nutshell
Main industry: resale of military and outdoor equipment
Turnover: EUR 1-50 million
Circular economy solution launched: 2017
Share of the circular economy solution of all business operations: n/a
Staff size: 10-250