Buyback and trade-in programs have been gaining momentum over the past few years. Why? Because this technology-based practice basically allows the easy transfer of used electronics between different parties. And it’s benefiting consumers in some of the hottest emerging markets.
Recommerce’s Many Phases
Buyback schemes can be conducted in several phases. The first phase occurs when an owner decides to get rid of an electronic item that they purchased in new condition and used, and another person is willing to pay to have it. The second phase takes place when the new owner also decides to resell their property after using it.This is pretty much what has been done for years on popular websites such as Amazon.
But the introduction of trade-in businesses has considerably simplified recommerce transactions for savvy-tech consumers. Indeed, when such consumers think that their electronic item no longer has great value, they may sell it at any local trade-in business for a large chunk of cash, although this depends on the age of the product. Consumers can then redirect the money towards the acquisition of the latest version of their item.
Asia: A Case Study in Successful Recommerce
To measure the impact of recommerce on a nation, one should look at what has been happening in Asia in recent years. As you might know, the number of recommerce businesses has grown in Asia mainly because of the growing demand for smartphones. Because domestic supply was unable to meet such demand, Asian phone companies turned to the United States market and its glut of older high-tech phones.
The benefits of global recommerce go beyond profits. As new generations of smartphones last longer, and as consumers in the United States are using them for shorter periods of time, one can imagine the volume of e-waste that would have to be treated if these electronics weren’t redirected to the Asian market. In other words, on one hand Asian consumers get top-notch second-hand phones, and on the other, the world reaps enormous environmental benefits.
The advantages of recommerce are numerous as they extend to both the environment and the economy. Only time will tell us how far this ongoing trend will go. Please contact us for more information on instituting an innovative recommerce scheme for your business.