REI's Used Gear Beta - try it out and post your feedback!

People buy from REI for a few reasons:

1. They have items in store that most places dont have anymore. You can handle, feel, and try things on.

2. They have an incredible return policy (although not as incredible now obviously)

The used gear beta has none of the above. REI has never been known for low prices so even at 25% off their lowest sale price you still will probably be able to find that item new for the same if you search a bit and are willing to wait.

That being said I did buy one item because it was a rare REI in house item (not many sold) that I know I wont ever find anywhere else.

Dave Kos wrote:

Pants listed with inseam size and not waist size.

The size filtering is done by S/M/L or waist size... then each product is listed by inseam.  Maybe you didn't see the filters or I'm not following what you meant?

I'm very happy to see REI selling used gear online, photos would be nice but it's also great to have a 30 day return policy! Also very excited to see that the new site is a React SPA, looking forward to more added features :)

Vik, while you're here I'd love if you could explain where REI's profits are going and what makes it a CoOp?

The CoOp thing still has me really confused and as someone already pointed out, I seldom see discounts > 20%...

  Unfortunately for climbers, for safety and liability reasons we can't resell climbing hardware (...)

Oh too bad, you lost me right there...

Vikram Sahney wrote:

The size filtering is done by S/M/L or waist size... then each product is listed by inseam.  Maybe you didn't see the filters or I'm not following what you meant?

I didn't see the filters.

Dave Kos wrote:

I didn't see the filters.

No worries.  That alone is good feedback.  We should work to improve their visibility!  Otherwise a unfiltered browse would be an exhausting experience.

Seems like geartrade.com has this niche pretty well figured out. A number of online retailers (backcountry and omcgear for instance) actually use geartrade for their returned merchandise

I thought backcountry owned geartrade?

Jon Frisby wrote:

I thought backcountry owned geartrade?

They do and they sell quite a bit on there.

GearTrade is also suffering from a very outdated interface. In addition sellers have to actually wait for a physical check to be mailed to them which can take quite some time. Its popular but quite behind the times.

bought a pair of "like new" brooks cascadia running shoes from REI Used for....$26!  They were exactly as described and im super happy!

Dante Carriero wrote:

They do and they sell quite a bit on there.

GearTrade is also suffering from a very outdated interface. In addition sellers have to actually wait for a physical check to be mailed to them which can take quite some time. Its popular but quite behind the times.

Backcountry.com does NOT own Geartrade.  Geartrade was acquired by the original founders of Backcountry in 2005, but the two businesses are not related.  Backcountry does sell liquidation/clearance product on Geartrade I believe.  You can see that on their About page here: https://www.geartrade.com/about 

The GearTrade site experience has many strengths, but also has many challenges.  Some of those challenges include, a high component of buyer/seller beware, goods of unknown origin/authenticity, unverified retail prices and markdowns, potential for fraud, etc.  Consumers can pick and choose their platform/process of choice.

Nate Nate wrote:

Vik, while you're here I'd love if you could explain where REI's profits are going and what makes it a CoOp?

The CoOp thing still has me really confused and as someone already pointed out, I seldom see discounts > 20%...

Hi Nate - I'm so glad you asked!  

REI was founded as a Co-op in 1938 and has operated as one since that time.  We are owned by our members, and active members can receive dividends, receive member only-coupons, shop our in-store garage sales (returned product), bring motions to the board, nominate candidates to the board, and vote in board elections.  You can read more about our governance and the by-laws here:  https://www.rei.com/about-rei/governance.html 

You can pull up the co-op financials online here: https://www.rei.com/about-rei/financial-information.html.  Unlike a privately held business (e.g., Patagonia - who doesn't disclose financials) or publicly held business (e.g., VF - TNF) there is no 3rd party who can withdraw money out of the system, it either goes to members, employees, non-profits, or is reinvested in the business.  In terms of profits in 2016, ~30% were retained and reinvested in serving members and growing the business (e.g., IT systems, new stores, new distribution center) and ~70% of profits are returned to the outdoor community in the form of dividends and credit card rebates to members (~$193.7M), grants to non-profits (~$9.3M last year), and incentive pay and retirement contributions to REI employees ($57M).

Most national brands (e.g., Arc'Teryx, TNF, Patagonia) have a Minimum Advertised Price (MAP) policy which effectively prevent retailers from discounting their products except for under certain conditions (e.g., up to 10 sale days and up to 20% off during current season, then when off-season you could discount more).  If you are looking for deep discounts on gear at REI I would recommend you look at REI Garage (https://www.rei.com/rei-garage) which has great deals on new items at an ongoing basis.  Right now there are a bunch of items at 50%+ off. Alternatively REI typically runs a number of sales throughout the year were a subset of items are listed beyond 20%. And finally if you are open to VERY lightly used gear you can check out the Used Gear Beta I just helped launch and was sharing here with this community.  

Let me know if you have additional questions!

Vik

Just took a look at your bylaws - I'm curious how you are classifying the dividends as such when in practice, everyone gets a dividend in the amount of 10% back on non-garage purchases, rather than a pro rata distribution based on profits? I've never had a dividend either higher or lower than the typical 10%, which seems at odds with calling them dividends instead of rebates (this isn't something I care about - just curious).

Forever Outside wrote:

neat idea, but quickly browsing the items they have up and comparing to their original retail, you're hardly getting a deal.  A savvy online shopper can apply some discount codes, active junky, and a sale to achieve the same, if not better, prices on those items but NEW, not used or worn.  REI is ok, but their biggest downfall is their price mark up and never offering discounts greater than 20%.  Time and time and time again I am shopping with BackCountry.com  And don't even get me started on the customer service between the two, BC is basically flawless.

Agreed. Routinely one can find brand new gear for 25% or more off with active junky additions on sites like backcountry, Moosejaw, gear express etc. And REI isn’t even on AJ anymore. Used gear should be deeply discounted simply to get it in the hands of people who will use it so it doesn’t end up in the land fill.  Not as a money maker. 

Jon Frisby wrote:

Just took a look at your bylaws - I'm curious how you are classifying the dividends as such when in practice, everyone gets a dividend in the amount of 10% back on non-garage purchases, rather than a pro rata distribution based on profits? I've never had a dividend either higher or lower than the typical 10%, which seems at odds with calling them dividends instead of rebates (this isn't something I care about - just curious).

Hi Jon - We look at operating income after tax but pre-dividend.  On our membership dividend page (https://www.rei.com/membership/dividend) you can find this explanation: "*10% member dividend is typical but not guaranteed. Your member dividend is based on eligible purchases, which exclude REI Garage items, discounted items, gift cards, REI Adventures trips and services."  I'm not sure on the technicality of calling it a dividend vs. a rebate.  I suspect they have different legal/tax implications, but am not an expert there.

Vik

no way. this stuff is way too close to the original price and without a pic of the actual item. All REI has to do is put themselves in the buyers shoes. common sense. i will stick with backcountrygear.

Vikram Sahney wrote:

Hi Jon - We look at operating income after tax but pre-dividend.  On our membership dividend page (https://www.rei.com/membership/dividend) you can find this explanation: "*10% member dividend is typical but not guaranteed. Your member dividend is based on eligible purchases, which exclude REI Garage items, discounted items, gift cards, REI Adventures trips and services."  I'm not sure on the technicality of calling it a dividend vs. a rebate.  I suspect they have different legal/tax implications, but am not an expert there.

Vik

yeah. I've never reported them - probably a rebate as I don't consider my initial $20 membership fee a capital investment. not too worried about it. I'm sure you guys have a pretty substantial SALT team

A search function please!

Tried REI Used Gear.  Let the buyer beware.  They shipped shirts rolled up compactly in a small plastic USPS plastic bag and charged $39 for shipping!!!  Shipping charges were not quoted at the time of purchase.  Way too expensive.  And of course, I pay for return shipping.

The products UNused are available on other Websites for less, also.

All I can say is BEWARE.