How much does the discount of a used smartphone cost ?

02/08/2023

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2.8 million refurbished smartphones were sold on the French market in 2020. The demand for second-hand products continues to grow and for good reason, such a purchase allows consumers to enjoy financial and environmental benefits.

Buying a refurbished phone allows you to benefit from a reduction in its price of 20 to 50% compared to a new product. Good to know: the average price of a second-hand smartphone is 240€.

Beyond the financial aspect, the purchase of second hand, allows an annual environmental impact reduction of 55% to 91% according to the indicators compared to the use of a new smartphone. 82kg of raw materials will be preserved and 25kg of GHG per year of use. In 2020, this would amount to savings of approximately 229,000 tonnes of raw materials and 70,000 tonnes of CO2 equivalent.

Before arriving in the hands of the end user, the refurbished smartphone followed a distribution chain little known to the general public. We explain what happens before a purchase in store or online. We will take here the example of an iPhone X 256GB sold around 320 € TTC on Dipli partner channels.

From collection to processing

The first step is to collect and process the mobile. In short circuit logistics in will average 3 €.

To ensure the safety of users, before any new sale, the complete erasure of data from the mobile must be made. This is an essential step that is carried out by our partners and managed via software that complies with European data protection and privacy regulations (RGDP) : Blancco, NSYS Group, Piceasoft.

The device must undergo many tests in order to bring it possible repairs. The purpose of the operation is to get as close as possible to a new product. No less than 30 control points can then be used to certify that the device complies with a re-sale. These steps of erasure, tests and cleaning cost 10€ in an expert center in France.

If necessary, the battery can be changed for a cost of 20€.
And finally, the packaging of the product, with a new cable certified ROHS & CE (the goal is still to avoid the addition of superfluous new accessories to reduce the carbon footprint) will return to € 6.

The distribution of the product

The Dipli product, when resold on a marketplace is constrained by a commission of about 12% on its final price. If a marketplace commission is not applied, a margin of the physical reseller can be applied. It will then be 45 - 55 €. The amount here is higher, because the physical reseller asserts its advice and immediate availability service to the consumer.

In the case of a remote sale, it is common to use an express transport like Chronopost, UPS or DHL, the logistic cost associated with the insurance is about 10 €.

The after-sales service

Then comes a key position, yet often overlooked: after-sales service.
Once the product is delivered it is necessary to count the provision for service and the cost of a possible withdrawal of the customer which amounts to 10 €. Too little provision can jeopardize the long-term economic model. Overall, the support of the customer by an operator in France amounts to approximately 5 €. This is the loaded salary reported for the full time spent on a smartphone.

Taxes

And last but not least, the last item of expenditure is taxes. They represent 37.7% of the price of a refurbished used smartphone for the second-hand market.
Different taxes apply on the French market:

TVA, if it is classic it will be 20% or 53 € here. To understand the terms of the classic VAT, you can consult our article.
The Eco tax at € 0.02, it allows to finance the end of life and the recycling of the mobile.
RCP at 8€, it is a fee that pays the rights holders for music copied on the phone, excluding streaming

To simplify the lives of professionals, these expense items are combined in the Dipli global service. Our expertise allows us to offer our customers an integrated and unique tool to manage the purchase and sale of second-hand products on our channels.

Dipli covers and simplifies all stages with a single ambition: to become the global player of reference on the supply chain of second-hand electronic products. We accompany you to duplicate your performance on your activities and guide you.

Do you have any questions? Feel free to contact us.