You might wonder whether your used device business should resell refurbished smartphones, and if so, whether to buy them in bulk or refurbish them yourself. In the article, we explain the benefits of each method and provide an overview of the current condition of the refurbished phone market. Read on to learn more!
If you are just starting your business journey, you might not know the differences between used and refurbished tech and their pros and cons. Read our article to find out!
Refurbished Phone Market Overview
The market for refurbished devices is consistently growing, proving the global trend toward sustainable electronics and the circular economy.
According to Market.US research, the refurbished phone market is expected to grow from $69.5 billion in 2023 to $219.7 billion by 2033. The major player in the market is North America, with a 36.4% share and revenues of $25.3 billion. The projected CAGR growth is 12.20% from 2024 to 2033.
As for the environmental benefits of the market, Market.US research claims that refurbishment prevents the production of 225 million kilograms of e-waste annually.
Key Takeaways for Businesses
The most important statistics businesses need to be aware of relate to the buyers of refurbished tech. Most buyers are individuals, accounting for 65.3%, compared to 34.7% who are other businesses.
Prices for refurbished tech vary, but the largest segment, holding a 43.5% share, falls within the $200–$500 price range.
How Good Are Refurbished Phones for Your Stock?
Due to high customer demand, used device businesses should definitely have refurbished smartphones in stock.
But why do they appeal to customers? Several key reasons include:
- High Quality. Refurbished smartphones have been restored and accurately tested with solutions such as NSYS Diagnostics, ensuring their good working condition.
- Longer Warranties. Following the previous point, refurbishers provide extended warranties on refurbished devices as they are sure of their quality.
- Environmental Impact. Choosing refurbished devices over newly produced ones has numerous benefits, including lowering resource extraction and e-waste production.
- Affordable Prices. Compared to new phones, refurbished phones are cheaper and, therefore, premium models with advanced features are more affordable.
Resellers can highlight these benefits to customers looking for reliable smartphones for a reasonable price.
Should Businesses Buy Refurbished Phones or Refurbish Devices In-House?
When you decide to sell refurbished phones, you need to decide whether you will buy them in bulk from other refurbishers or refurbished pre-owned smartphones in-house. Neither of the options is better than the other, but they both have advantages to consider.
Refurbishing Phones Yourself
On the one hand, when you refurbish phones in-house, you have control over quality and the process. Moreover, you can customize devices according to your customers’ needs, therefore, improving their satisfaction with your brand. Additionally, you have higher margins, as the final price won’t include the markups from external suppliers.
On the other hand, this additional step makes your business more complex, leading to more difficult scalability and increased management costs. Refurbishing can be particularly challenging for small businesses as it requires additional investments and skilled repairers.
Purchasing Refurbished Phones in Bulk
When you buy batches of refurbished smartphones, the turnover cycle is shorter, leading to faster revenue generation. Additionally, the workflow is more predictable and can be scaled with minimal difficulty.
However, purchasing refurbished tech from suppliers can make you dependent on them. Moreover, your margins may be lower as the purchase prices tend to be higher.
An important thing to note is that you still need to test the bought device on your side. It is essential to avoid purchasing devices of inferior quality.
How to Verify the Quality of Refurbished Devices?
Whether you refurbish phones yourself or buy already refurbished ones, you need to accurately test each device and provide verification of its quality. The best way for businesses to do this is to use testing software like NSYS Diagnostics.
NSYS Diagnostics performs more than 60 tests to detect over 100 hardware defects. For each device, the solution provides a certificate with the result of each test. The certificates are obligatory for sales at marketplaces such as Amazon, Back Market, and Refurbed, and NSYS Group is a trusted software provider for these platforms.
Try NSYS Diagnostics to improve the quality assessment of your stock!
