A Look into GameStop’s Automated Cellular Gadget Grading Program

For over a decade, GameStop has labored with B-Inventory to promote bulk portions of trade-in cell units, tablets, and wearables by way of its B2B market GameStop Wholesale. Since its inception, {the marketplace} has facilitated the sale of tens of tens of millions of units to enterprise consumers throughout the globe and allowed GameStop to maximise pricing and quantity of gross sales. 

A lot of the success of {the marketplace} might be attributed to constant grading requirements and high quality assurance which have traditionally been achieved manually. Lately, nonetheless, GameStop determined to put money into automated gadget grading to make sure even higher requirements for each trade-in gadget. After partnering with The Phoenix Group the method now combines superior automated robotics-powered inspection with meticulous guide checks, guaranteeing that each gadget meets the best requirements earlier than reaching consumers.

To be taught extra, we sat down with Jon Haes, GameStop’s Vice President and Head of Pre-owned Enterprise, to ask a number of questions on this new initiative.

To set the stage, it could be good to be taught a bit about how a typical trade-in transaction with GameStop works. How does GameStop initially purchase the units?

JH: “We purchase units by way of our retailer trade-in program, which captures detailed gadget data on the level of trade-in. Within the retailer, we conduct guide grading and purposeful testing to evaluate the gadget’s situation. The trade-in worth is then offered by our system primarily based on this evaluation.”

How is the in-store testing achieved?

JH: “The in-store testing is complete and consists of over 20 totally different assessments. These embody checking the Discover My iPhone (FMIP) standing, verifying all part connections, and assessing the battery well being stage. The take a look at outcomes are then saved in our system and linked to the unit’s serial quantity.”

And what choices do clients have for receiving their payouts?

JH: “Clients have the flexibleness to decide on between receiving money or retailer credit score for his or her trade-ins. Retailer credit score worth is greater than money, incentivizing clients to make future purchases with GameStop. This enables clients to pick the choice that most accurately fits their speedy wants.”

How do the units get to your central processing facility for the following steps?

JH: “Shops ship to our Refurb Operation Middle, often known as the ROC, on a weekly foundation. This ensures that units are effectively transported to our central processing facility and made accessible on the market to our clients on B-Inventory as quickly as attainable after trade-in.”

What was GameStop’s grading course of like main as much as this new initiative to put money into automation and associate with The Phoenix Group?

JH: “Previous to this new funding in automation, GameStop’s grading and processing relied on guide inspection carried out by associates. Whereas we maintained constant requirements, the choice to put money into automation was pushed by the necessity for enhanced consistency and to mitigate the impression of human elements on the standard of the inspection course of. Sincere errors might be made when persons are solely performing the grading, like lacking a small scratch on a cellphone display screen or lacking a small chip on the nook of a pill.  The outcomes from our automated system have proven vital enhancements and a optimistic return on funding.”

How did GameStop first study and have interaction the Phoenix Group?

JH: “We first realized concerning the Phoenix Group by way of market analysis achieved as we evaluated a number of distributors. We selected Phoenix Group as a result of its companies and options finest aligned with our personal enterprise wants and necessities.”

Was GameStop offered on this tech instantly? Was there a pilot program?

JH: “We had beforehand performed a pilot program with one other vendor, so once we engaged with Phoenix Group, we had been already acquainted with the know-how. Phoenix Group was capable of exhibit its high quality successfully through the demo and preliminary pilot take a look at run, which solidified our determination to maneuver ahead with them.”

How are gadget grades given and recorded?

JH: “Through the receiving stage, the system reads and prints the gadget’s serial quantity on a sticker, which serves as an indicator for scanning all through the method. The software program additionally data different gadget data, together with mannequin, IMEI, reminiscence dimension, FMIP standing, gadget provider, and provider blacklist standing. This data is saved within the system and linked to the gadget’s serial quantity.

On the last station, the system combines the outcomes of purposeful assessments, obtained gadget data, and robotic grading. Utilizing our grading desk, the system calculates and determines the ultimate grade consequence for every gadget.”

What precisely does the robotics system have a look at when grading units?

JH: “The robotics system at our manufacturing facility is targeted solely on beauty grading, as we have already got a complete testing answer in place on the retailer stage.  The robotic grading course of identifies scratches, chips and cracks in addition to dents and harm to the chassis.”

Does GameStop adhere to an industry-standardized grading system?

JH: “We discuss with and evaluate industry-standard grading standards, together with benchmarks from the market like CTIA and different companies, to find out our grading requirements. Whereas we base our standards on these requirements, we’re open and keen to share our grading standards with our clients.”

Other than grading, what different duties are these robots presently dealing with for GameStop?

JH: “Other than grading, the robots are presently dealing with the duty of bodily cleansing the units in order that they’re tidy and sanitized earlier than packing for resale.”

How is GameStop measuring the success of this roll-out?

JH: “We measure the success of this roll-out primarily based on buyer suggestions and knowledge, which replicate buyer retention charges. Moreover, we overview our Return Merchandise Authorization (RMA) metrics to evaluate efficiency and establish areas for enchancment.”

Are you able to give any figures round how this automation initiative is bettering efficiency?

JH: “One of many key metrics indicating the success of our automation and robotics initiative is the consistency of grading outcomes, which has been highlighted as the highest suggestions from our clients. This consistency has been essential in bettering general efficiency and buyer satisfaction.”

What duties does GameStop hope to automate within the close to future?

JH: “We’re presently exploring alternatives to additional automate our processes to reinforce effectivity, together with duties associated to packing, sorting, and transportation throughout the facility. Nonetheless, any modifications shall be applied provided that there’s a sturdy enterprise case.”

The place do you see this automation initiative heading sooner or later, each for GameStop particularly and for the cell secondary market as a complete?

JH: “For GameStop particularly, we anticipate that the continued growth and growth of our automation and robotics capabilities will result in even higher efficiencies in our processing operations. This can additional improve the standard of our companies and provides us a possibility to develop into further merchandise.

For the cell secondary market at giant, the adoption of automation and robotics is more likely to set new requirements for effectivity and accuracy in gadget grading and processing. This development could encourage different gamers out there to put money into comparable applied sciences, resulting in widespread enhancements within the general {industry}.”

How has the connection between GameStop and B-Inventory shifted extra lately? Has this automation initiative affected this partnership in any respect?

JH: “The automation and robotics initiative has strengthened our partnership with B-Inventory by enhancing our processing capabilities and general effectivity. This alignment permits us to supply extra constant and dependable trade-in options, benefiting each our personal operations and our partnership. It additionally opens alternatives for integration between our system and B-Inventory’s system, which is able to improve accuracy and effectivity all through the end-to-end course of.”

Any final phrases about GameStop’s operations, mission, objectives, or future relating to the pre-owned cell units on the secondary market?

JH: “We’re excited concerning the developments we’ve made on this house.  Automated robotic grading and gadget cleansing guarantee consistency for our clients.  As well as, our partnership with B-Inventory permits us to leverage a top-tier platform to drive worth again to GameStop when it comes time to resell the product.  We see the cell class as a key development space for our firm and our processing developments and partnerships within the house present us a strong basis that we will proceed to lean into to drive the enterprise.”

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For an inside have a look at the rigorous multi-point inspection that every gadget undergoes to make sure exact and dependable grading, watch the video: 

To be taught extra about B-Inventory’s B2B resale options for trade-in and preowned cell units, wearables, and tablets,  go to our web page for cell sellers.