Mystery pack machines: Gambling with returns is booming

TV and print media regularly report on returns from large online retailers that companies can no longer find a use for and are simply destroyed as a result. Mystery pack machines are now another solution to the problem, and one that seems so innovative and exciting that the machines are real customer magnets. The returned goods are dispensed at random for a certain ‘stake amount’.

The problem of mass returns has developed into an ecological and logistical challenge in recent years due to the rapid growth of online retail. In Germany alone, around 530 million parcels are returned every year, according to findings by the Returns Management Research Group at the University of Bamberg - an alarming figure that shows the extent to which consumption via e-commerce platforms such as Amazon, Otto and Zalando is fuelling returns traffic.

Despite being in perfect condition, these returns often end up being destroyed as recycling by retailers is considered too time-consuming and cost-intensive. This practice not only violates sustainability principles, but also attracts growing criticism from environmental organisations and society. In addition, a considerable number of consignments cannot be delivered and/or wait in vain for collection after being stored in mail order companies' branches. It is not uncommon for these items to end up in the waste compactor.

In the midst of this problem, a novel and surprisingly popular solution has emerged: so-called mystery pack vending machines. These machines, which can be operated like conventional vending machines but offer a random selection of returned goods instead of snacks and drinks, are becoming increasingly popular. Specialised retailers purchase pallets of returns at discounted prices and fill their machines with them. Consumers end up relying on their luck to perhaps receive an unexpectedly valuable item at a low price. The business model, which combines elements of gambling and bargain hunting, appeals primarily to a young, consumerist target group.

But what is all the hype about returns gambling and how exactly does it work? Here are the answers!

How the mystery pack vending machine business works

Mystery pack machines or secret pack machines have been popping up in more and more places across Germany recently. The machines are located in pedestrian zones, in front of petrol stations, at fast-food restaurants and in many other places that normally have a lot of pedestrian traffic. In some cases, they are even positioned in front of gaming arcades, which does not seem unwise when considering the typical motivations behind their use (which will be discussed in more detail below).

The basic business principle is simple: the operator buys the machines, arranges suitable locations and orders batches or pallets of returns from specialised retailers, which come from large online mail order companies.

They are operated in just a few steps that are familiar to many regular vending machine users:

1. The first step is to insert the required amount in cash into the slot provided or use a suitable cash card to activate the machine.
2. The machines generally have a number field which can be used to select the exact parcel required.
3. The item can then be removed and unpacked directly - only now is it revealed what has been purchased.

This is why mystery packs are very interesting for many people

Mystery packs are very popular not only because of their bargain potential, but also because of the psychological mechanisms they specifically appeal to. The concept is reminiscent of a combination of a classic chewing gum machine and a surprise bag - it is the uncertainty, the suspense and the hope of an unexpected treasure that attracts people to the machines in droves.

Psychological aspects

The idea of getting hold of luxury goods such as an iPhone, expensive watches or exclusive designer fashion for just a few euros increases the appeal considerably. Studies in the field of consumer psychology show that the anticipation of a possible reward activates the reward centre in the brain, which promotes the release of dopamine - a neurotransmitter that is strongly associated with feelings of happiness. This ‘gambling feeling’ ensures that the appeal of mystery packs for many people goes far beyond the material value of the contents.

The extent of this fascination is particularly evident in highly frequented places such as train stations, pedestrian zones or shopping centres. Devices that are filled several times a day are often empty just a few hours later. Queues even form at hotspots, as the idea of being very close to a coveted item exerts a strong attraction. Similar to a surprise egg, the moment of unpacking plays another key role: it rustles, rattles, crackles or makes no noise at all. The first speculation arises when you feel the parcel. A sensory experience that is linked to a child's sense of excitement and curiosity.

Locations near amusement arcades

The installation of such machines in the vicinity of gaming arcades or betting shops is particularly ingenious, as the target group is already familiar with the mechanisms of gambling and is used to them. Similar psychological patterns apply here: the hope of a big win for a small stake is an additional incentive for many users to try again. Even if in most cases the mystery packs only contain everyday items, it is precisely the possibility of the ‘big catch’ that strongly motivates behaviour.

From an economic point of view, the placement of mystery packs is a clever strategy: the low price per surprise creates a low financial inhibition threshold, while the prospect of high-priced goods encourages consumers to make repeat purchases.

Can mystery pack machines be addictive?

Secret Pack machines can be highly addictive, as they are based on a similar principle to games of chance: the unpredictable reward. The reward centre in the brain is activated by the prospect of a possible win, which leads to an increased release of dopamine and triggers the desire to play repeatedly.

People who are typically prone to impulsive or risky behaviour are considered to be particularly at risk.

This would be gamblers in particular, but also young people. This means that the installation of devices in front of amusement arcades or near children's and youth centres can be viewed critically. Experts and search researchers have already ‘put out feelers’ and warn that the mechanisms are comparable to those of slot machines. The fact that the low cost per purchase or game can significantly lower the inhibition threshold for repeated use can also be tricky.

How can you find secret pack machines?

Secret Pack vending machines are not listed nationwide, which makes finding them an exciting task in itself. Different operators are responsible for distribution and installation, and often only operate regionally. While some of them only provide a single vending machine, others have established themselves as chains that advertise their locations specifically online - for example via websites such as Surprise-Packs.de or Mysterypackagelive.de.

One of the first vending machines is still located on the RAW site on Warschauer Straße in Berlin, not far from the ‘Wursthain’. But the locations are not limited to metropolises such as Berlin, Hamburg or Munich - hidden bargains are also waiting in less prominent places, such as petrol stations or snack stands in rural areas.

For die-hard fans, it is almost part of the attraction to keep discovering new locations - a kind of urban treasure hunt that is fuelled by the hype on social media.

Conclusion

Image source: Screenshot von https://www.mysterypackagelive.de/i/unsere-automaten