The Refurbished Electronics Market: What To Know And How To Succeed

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The refurbished
electronics market is bigger than you might think. By latest estimates, it’s
valued to be a $10 billion industry—and that’s only expected to grow as
consumers realize that refurbished cell phones, laptops and TVs can provide
quality products at more affordable price points. Looking to tap into the
growing refurbished electronics market? Here’s what you need to know in order
to compete.

Refurbished Products Are Popular

A recent white paper which surveyed more than 1,400 online shoppers, found that 94 percent of respondents have knowingly purchased refurbished electronics in the last three years. And, 75 percent of participants said they are likely to buy refurbished goods in the future. Retailers should take note—buying used and repaired electronics is no longer considered taboo, but an integral part of the consideration stage in a buyer’s journey.

And, Buyers Are Generally Happy With These
Purchases

The majority of
online shoppers—84 percent—who bought a refurbished product are satisfied with the
electronic item, especially given its cheaper cost. (The majority of these
buyers say “the deal” is a major draw because it helps them save money and try a product without making a major
monetary investment.) As the quality of repaired consumer goods continues to
improve, customer satisfaction, and the market as a whole, will grow. This
presents enormous opportunity for electronics brands; as these happy
entry-level buyers move up the economic ladder, they’re likely to purchase more
expensive “A” stock from the same retailers. Not only that, but also these
buyers can turn into brand loyalists, sharing their experience with friends and
colleagues—and almost nothing beats word-of-mouth recommendations from a happy
customer!

Consumers Are More Likely To Buy Refurbished
Electronics Online

Eighty-two
percent of shoppers prefer to purchase used and restored electronics online
rather than in-store. Reasons for this could include the ability to search
reviews and more easily compare similar brands and products. Regardless of the
motive, what this means for retailers is that a strong and robust online
presence is necessary for success. Data-backed e-commerce can help bring in the
right consumer that’s ready to buy.

Accurate Details & Warranties Are An Absolute
Must—And So Are Brand Names

Even with the
benefit of affordability, buying refurbished electronics can make consumers
uneasy because they’re a) not sure what to expect and b) concerned there might
be no recourse if the product doesn’t deliver on quality or functionality. So,
the more information a retailer can provide, the better. Offer insight into
product features, let shoppers know whether accessories are included, and post
real product photos so that they know what they’re getting. Warranties are key,
too. Nearly 70 percent of survey respondents say that the availability of a
warranty helps convince them of buying refurbished electronics because it builds
trust in the product. And, speaking of trust factor, brand names are highly
sought-after for the same reason—consumers have faith in them.

The Most Successful Retailers Partner With A
Trusted Vendor On A Dedicated Sales Channel

Many brands prefer to keep their refurbished electronics, or “B” stock, separate from their main inventory, but internally creating a separate sales channel for used and restored products can take significant amounts of both time and money. By partnering with a secondary market expert like B-Stock, consumer electronics retailers can expand their share of the refurbished electronics market and leverage the reverse supply chain to out-sell competitors. Our established, data-driven online marketplaces drive greater demand, higher pricing and a faster sales cycle for returned, used and restored consumer electronics inventory.

Want more info? Request demo or watch our Live Video Chat: Consumer Secondary Market Insights

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