When you think of secondhand goods, pre-owned cars, vintage clothing, or refurbished furniture might come to mind. However, according to an article written by Stan Pavlovsky CEO of ecoATM Gazelle, a new contender is emerging in the recommerce market: mobile phones. Recommerce, the practice of buying and selling gently used products, is evolving rapidly, driven by consumers’ increasing focus on sustainability. A recent study by NielsenIQ revealed that 78% of American’s consumers prioritize sustainability, and this shift in mindset is clearly impacting the mobile phone market, according to Pavlovsky in Retail TouchPoints.
In 2022, sales of mobile phones in the secondary market surged to US$ 35.9 billion, marking a 20% year-over-year increase. Notably, from 2022 through Q1 2023, the recommerce of mobile devices grew by 14%, while sales of new devices declined by 2%. The mobile phone industry is quickly becoming a dominant force in recommerce, and here’s why you should pay attention:
The cost of new smartphones has skyrocketed, with the average price in the U.S. jumping from $409 in 2016 to $735 in 2022. Meanwhile, purchasing a gently used phone can save consumers 10%-15% within the first few months of release, with savings reaching up to 50% for older models. By opting for a pre-owned device, consumers can access high-quality technology at a fraction of the cost, making recommerce an attractive option.
Be smart trade-in
In 2022, the average U.S. adult held $2,459 worth of unused electronics, including smartphones. This represents a significant opportunity for consumers to participate in the "re-conomy" by selling these devices. For example, Pavlovsky claims that used Apple, Google, and Samsung devices that power on and were released in the last three years can earn around US$ 131. Many people are missing out on the chance to add extra cash to their pockets by not selling or recycling their unused smartphones.
Avoid e-waste
The U.S. generates 6.9 million tons of e-waste annually, with only 15%-20% being recycled. Recycling old phones extends their lifecycle, conserves raw materials, and promotes a circular economy. The World Economic Forum found that 94% of Americans support recycling, but only about 50% actively participate, citing a lack of convenient access. There is a growing need for more recycling options to help bridge this gap.
More on ecoATM Gazelle
ecoATM Gazelle secured an additional investment of US$ 50 million in growth equity from existing investors in March 2023. This funding aimed to accelerate the company’s expansion by improving user experience, developing a even more robust tech platform, and strengthening enterprise partnerships to meet the increasing demand for pre-owned smartphone purchases and resale. In January 2023, ecoATM reached 38 million smartphone and mobile device re-commerce units, indicative of the growing and critical demand for technology recycling.
Base on following article from RetailtouchPoints
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