Optimizing your secondhand stock management with FAUME

But for brands, getting into this model raises many questions and worries. What to do with the products you buy back? How to guarantee quality? How to avoid unsold items? These are valid questions but they hide a great opportunity: transform inventory management into a growth driver.

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Peer-to-peer models limitations:

To overcome this problem, some brands are turning to white-label peer-to-peer solutions. These models are appealing because they promise: to delegate inventory management to the users themselves. Although these solutions seem attractive, they have many drawbacks that harm the user experience and therefore your brand image:

• Poor selling experience: Users don’t have a structured process or a guaranteed buyback of the items.
• No quality control: No sorting or systematic verification by the brand or a trusted third party, which leads to a devalued shopping experience.
• Multiple deliveries: An order can be sent in multiple packages from different sellers, which is frustrating for the buyer.
• Direct competition with big platforms: These models replicate partly the functioning of Vinted but without the depth of offers or diversity that makes them successful.

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In short, delegating inventory management with these solutions creates a fragmented and poor user experience far from the consumer expectations.

But there is another way, more complex but infinitely more valuable for brands and their customers.

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With FAUME, all friction points are removed:

For many, secondhand inventory management is a logistical puzzle. But with the right approach it can be a strength. The biggest challenge is in a simple concept: control. Control over what comes in, what goes out and especially over the experience lived by each customer.

The advantage of using an integrated solution like FAUME is to be able to offer your customers a seamless and high-quality secondhand experience, as if it was new.

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• Simplified buyback process and guaranteed buyback: FAUME simplifies the buyback of items online and in-store with a clear and fast process. Customers get a precise buyback offer, calculated on the model reference and are compensated within 7 days via a gift card valid on your new and secondhand products.
• High quality secondhand products: Each item is controlled by our network of certified partners. Authenticated, checked and refurbished to the highest standards, your products give confidence to the buyers and are attractive.
• Unified logistics for a better shopping experience: Our network of logistics partners centralizes all the operational steps: buybacks, storage, order preparation and returns. This organization reduces the delivery time, allows for combined orders and ensures a consistent and high-quality customer experience.
• Customized platform for your brand: Your secondhand program is your brand identity through a bespoke reselling site. Rich product sheets (worn photos, detailed descriptions, composition information) and customization according to your standards improve the shopping experience, reduce returns and strengthen customer loyalty.
• More distribution channels: FAUME maximizes the sales of your items through a multi-channel strategy. Combine your own sales (online or in-store) and multi-brand distributions via partner marketplaces or multi-brand stores (wholesale). This widens the reach of your offer.
• Ability to extend your program to international markets: Expand your secondhand strategy internationally and adapt your actions to each market.

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Brands working with FAUME have an average annual sell-through rate of 90%.

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With FAUME, brands use a strategic approach with our set of high-performance tools. This allows them to fully control the sales of their items and optimize their secondhand program.

Result: Brands working with FAUME have a 90% annual sell-through rate, the key performance indicator.

Let’s see how our tools turn inventory management into an opportunity and see the concrete results of our clients.

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1. Manage your prices to optimize your inventory:

With FAUME Dynamic Pricing, brands benefit from an advanced algorithmic dynamic pricing model based on yield management principles to optimize the sales of items while keeping profitability.

Consumers are more and more concerned about their ecological impact and turn to secondhand products as an economical and responsible alternative to new products. In fashion, this trend is even more pronounced as fashion items are often obsolete due to their seasonality. Our algorithm analyzes in real-time a combination of key data to adjust prices:

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• Price elasticity: Customer price sensitivity.
• Demand: Purchasing trends per category or product.
• Inventory turn: Sell-through time to avoid overstock or dead stock.
• Seasonality and trends: Adjustments according to high or low demand periods.

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With this approach, FAUME allows retailers and brands to get the most out of each item and to get rid of the inventory when it’s no longer wanted. Our pricing solution enables you to:

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• Limit non-strategic buybacks: Adjusting buyback prices will discourage buying back items with low resale value and reduce the unnecessary flows.
• Sell unwanted items: Prices are gradually adjusted to sell slow-moving items while keeping margins.
• Maximize margins: By keeping prices attractive for high-demand items, brands keep overall profitability.

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Thanks to our pricing solution, Sandro increased its inventory turnover by 50% and has a controlled 90% sell-through rate per year. By adjusting prices in real-time, the brand optimized its margins on “best sellers” and accelerated the sale of low-demand items. By combining smart data and yield management principles, FAUME gives brands the means to master their inventory and turn inventory management into a growth driver.

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2. Manage your buyback strategy with FAUME Trade-In solution:

• Customizable parameters: Set the number of buybacks per user over a defined period from your back-office through a simple and user-friendly interface.
• Adjustable strategy: Modify your capping rules in real-time according to your program’s performance and your objectives.

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FAUME Trade-In Solution gives you full control over your buyback capacity so you can manage the incoming flows.

After the success of their launch, brands like Bellerose and Bonpoint used this solution to adjust their buyback capacity. By limiting the incoming stock, they optimized their sell-through rate which increased by 30% year-over-year, reaching 87% sell-through rate and a stock turnover of more than 2. This flexibility allowed them to manage the flow while maximizing the performance.

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3. Boost your in-store sales with FAUME Retail Solution:

Although 70% of ready-to-wear purchases are made online, consumers want a quality guarantee especially for secondhand items. FAUME allows you to integrate your second-hand offer into your physical stores network, so retailers have an enriched customer experience and optimize their points of sale.

• Better product perception: In-store, customers can see, touch and try items. This builds trust and sells items difficult to sell online.
• Inventory management: Items that don’t sell online get a second life in-store, reducing the risk of overstock and increasing their turnover potential.

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This omnichannel model combines the best of e-commerce and physical sales while having full visibility on your inventory.

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For example, Ba&sh multiplied their secondhand sales in-store with the opening of pop-ups. This setup allowed them to double their monthly revenue, especially by selling items that didn’t sell online. The selected items sold quickly in-store thanks to a strong physical presentation. FAUME Retail Solution enhances your items while meeting consumer expectations.

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4. Expand your offer with FAUME Marketplace solution:

FAUME allows brands to increase the visibility of their offer through our links and interfaces with external multi-brand marketplaces such as eBay, Vestiaire Collective and Vinted.

With our inventory management tool, you can:

• Choose strategic items: Send only the items that match your criteria, such as sell-through time or margin level.
• Sell your dead stock: Leverage the targeted and massive audience of these platforms to sell your unwanted items.
• Build your brand image: Link your products to credible marketplaces to improve their qualitative perception among a demanding audience.

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Brands like Isabel Marant (on Vestiaire Collective) and The Kooples (on Vinted) used this curation strategy to send items with high sell-through time on our partner marketplaces. Result: 30% increase in revenue thanks to these additional distribution channels.

With FAUME Marketplace Solution, you turn your dead stock into opportunities and expand your offer and impact.

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5. International markets:

With FAUME, expand your secondhand strategy internationally and adapt to each market. This flexibility allows you to reach new customers and optimize overall performance.

• Targeted and modular expansion: Deploy your offer in new European countries and adjust your strategy. You can :
  • ‍Sell only in certain markets to move your inventory without opening local buybacks.‍
  • Temporarily close buybacks in certain countries to focus on sell-through.‍
• Agile and performance-driven: Open or adjust your actions based on sell-through rates, margins or commercial objectives per market.

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Case Study - Essentiel Antwerp:

The Belgian brand Essentiel Antwerp increased their performance by launching their secondhand offer in 2 new European countries, France and the Netherlands, without opening buybacks. Results:

• Additional revenue: +20%.
• Sell-through rate: 30% better than the previous semester thanks to a targeted sell-through strategy.

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With FAUME, brands can expand globally while optimizing their commercial strategy through local actions, each new market is a growth lever.

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Inventory and dead stock management:

Managing inventory and dead stock is a big challenge for companies selling secondhand products. These stocks are made of unique and variable quality products, making it complicated to manage. Dynamic pricing can be a key to success by adjusting prices according to demand and supply, to move products faster. Companies can also implement strategies to optimize inventory management such as inventory rotation and stock level management to minimize dead stock and maximize sales. By being proactive and strategic, companies can turn dead stock management into a growth lever while meeting consumer expectations for sustainability and quality.

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Why FAUME?

Inventory management is often seen as a barrier to launch a secondhand program. With FAUME, this obstacle becomes an opportunity. Our intelligent tools and integrated solutions give you full control of your inventory and a seamless customer experience.

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FAUME allows you to be in control of your program and get great results: 90% average annual sell-through rate.

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Ready to see how FAUME can turn your secondhand program into a growth lever? Contact us.