Best Buy to Test Try-Before-You-Buy Option
Later this month, Best Buy will start advertising try-before-you-buy rentals on its website for cameras, audio equipment and fitness trackers, the company recently told Recode. Best Buy is partnering with a San Francisco-based startup called Lumoid on the trial. The electronics retailer will feature the try-before-you-buy option on BestBuy.com and then send interested customers to Lumoid’s website to make the rental. Customers earn about 20 percent of the rental price back in Lumoid credits and can use them if they go on to buy the item outright.
Total Retail's Take: Best Buy continues to test new services and programs as it seeks to keep the momentum of its turnaround going — and at least hold off Amazon.com for capturing more of consumer electronics market. Amazon doesn't offer a similar rental service. The partnership with Lumoid is a potential solution to Best Buy's “open box” problem — i.e., goods that have been bought but then returned so they can’t be resold at full price. Best Buy is providing these goods to Lumoid to rent out. Best Buy declined to comment on the financial terms of the partnership, but Recode speculates a revenue-sharing component may be a part of it.