Refurbished market: current trends

Overview of the refurbished market

Market growth and future predictions

The market for refurbished electronic devices is experiencing exponential growth.

According to Keeep's 2022 barometer, in France, sales of refurbished smartphones increased by 18% in 2020 compared to the previous year. For professionals, the intention to purchase refurbished equipment over the next 12 months that same year was 36%. Since then, these numbers have continued to rise, reflecting a booming market with smartphones leading, followed by laptops and then tablets.

With revenue approaching 700 million euros in France in 2022 (Ademe), demand is intensifying. Additionally, technological advancements are constantly improving the quality of refurbished products, making this market a key opportunity for retailers.

Factors influencing demand for refurbished devices

• Economic pricing: a refurbished device is on average 30 to 70% cheaper than a new one, making it the primary purchasing incentive for users.
• Environmental preservation: buying refurbished products significantly reduces the extraction of raw materials, limits water consumption, and avoids waste production.
• Quality assurance: the refurbished market has built a reputation for quality through advanced refurbishment methods, offering optimal devices despite a second use.

Benefits of refurbished market for retailers

Costs reduction and prices attractiveness

• Reduced procurement costs: refurbished products have lower purchase prices compared to new products, allowing retailers to achieve higher profit margins.
• Improved profitability: the competitive pricing of refurbished products makes them attractive to consumers, thus enhancing the profitability of retailers who expand their offerings without the high costs associated with new products.

These benefits position the sale of refurbished products as an effective business strategy for retailers looking to diversify their inventory without increasing their costs.

Environmental benefits and meeting consumer expectations

The environmental concerns of consumers are growing, and they are increasingly seeking to make more eco-friendly choices without increasing their budgets.

Offering refurbished electronic devices not only contributes to the circular economy but also has numerous advantages for meeting these needs:

• Refurbishment saves up to 70% of the raw materials needed to manufacture a new device.
• 1 refurbished smartphone vs. a new one saves 55.75 g of WEEE, 22.9 m³ of water equivalent, and 25 kg of CO2e.
• 1  refurbished computer vs. new saves 314 g of WEEE, 36.3 m³ of water equivalent, and 70 kg of CO2e.

Source : Ademe

This enhances the retailer's brand image and customer loyalty, a real winning move!

Strategies for retailers in the refurbished market

Best practices for refurbished devices sales

By following these best practices, retailers can optimize their refurbished product offerings and maximize their success:

• Transparency and guarantees: provide detailed information about the refurbishment process and associated warranties to build consumer trust.
• Rigorous quality control: implement strict quality control procedures to ensure the proper functioning of refurbished products, thus reassuring users.
• Partnerships with reliable suppliers: collaborate with reputable and certified refurbishment partners to ensure quality and stock availability.
• Sales team training: educate your team about the benefits of refurbished products.
• Clear segmentation between refurbished and new products.
• Tailored marketing: highlight the economic and environmental benefits of refurbished devices.
• Dedicated customer service.

Technologies and innovations encouraging refurbished products

Technologies and innovations are multiplying, enhancing the quality, reliability, and appeal of refurbished devices:

• Mobile diagnostic softwares: increasingly advanced, these tools optimize the upstream value chain of refurbishment for data clearing and device diagnostics.
• Repair technologies and component replacement: advances in micro-welding techniques and component replacement, such as screens and batteries, extend the durability of refurbished devices.
• Traceability platforms: they ensure transparency and traceability of products throughout their lifecycle, building consumer trust.
• Circular economy: economic and logistical models promoting the refurbishment or recycling of materials reduce costs and the environmental footprint of refurbished devices.

Challenges and solutions for retailers

Quality and returns management

Retailers must prioritize the partners they work with. Partnering with device refurbishment experts is crucial to optimize product quality and thereby maximize the sales of refurbished products.

Similarly, effective return policies are essential for managing defective products or customer dissatisfaction, minimizing both financial and logistical impact.

Dipli is the all-in-one platform that simplifies the logistical management of refurbished products for retailers throughout the entire value chain. This solution also provides access to thousands of refurbished devices, allowing retailers to select the best products for their stores.

Marketing strategies and customer loyalty

Beyond a tailored marketing strategy in their stores, retailers can use methods to facilitate the sale of refurbished products and enhance customer loyalty:

• Promotional offers: provide attractive discounts and special deals on refurbished products.
• Loyalty programs: reward customers for purchasing refurbished products.
• Improved customer experience: ensure a smooth and positive shopping experience, both online and in-store, with responsive and personalized customer service to build customer loyalty and encourage recommendations.

Ultimately, by combining effective and high-quality strategies throughout their value chain with in-store tailored marketing, retailers have a real business opportunity by entering the refurbished market.

Dipli simplifies the second life of electronic products.

An all-in-one tool for distributors, leasing companies, telecom operators and companies to manage the entire value chain in one place.

The platform connects the electronics industry to secondary markets; simply and securely. Trade-in and return management, refurbishment, omni-channel purchasing and distribution: Dipli covers and simplifies all stages of the circular economy.