Trade-in programmes are increasingly positioned as a structural growth lever rather than a promotional add-on, according to executives from Amazon and recommerce specialist Alchemy speaking at the NRF Rev conference in New York in early January. The discussion highlighted how trade-in models are reshaping upgrade cycles, inventory flows, and value recovery across the secondary electronics market, particularly for smartphones and other high-value consumer devices.
Amazon links trade-in to growth
Michael Babbar, who oversees worldwide trade-in operations at Amazon, framed trade-in as a direct contributor to customer acquisition and revenue expansion. He argued that customers engaging with trade-in programmes demonstrate higher attachment rates for upgrades, extended warranties, and accessories. From Amazon’s perspective, this behaviour translates into stronger lifetime value and more predictable upgrade demand, reinforcing trade-in as a scalable growth mechanism rather than a margin concession.
Operational friction remains critical
Despite its strategic upside, Michael Babbar acknowledged that trade-in remains operationally complex. Unlike a standard purchase, trade-in requires multiple touchpoints, condition assessment, logistics coordination, and customer reassurance. Michael Babbar described operations and customer success as central to programme performance, noting that friction can suppress participation even when financial incentives are attractive. Amazon’s focus, he said, is on minimising effort to the point where trade-in feels like a default behaviour rather than an optional extra.
Returns infrastructure reduces barriers
Amazon’s evolving returns infrastructure was presented as a template for reducing friction. Michael Babbar highlighted initiatives that allow customers to return devices without printing labels or packaging, using physical drop-off points at Whole Foods locations. By simplifying logistics and reducing perceived hassle, Amazon aims to lift participation rates and improve net promoter scores, with downstream benefits for trade-in volumes and refurbished supply.
Replacing discounts with asset value
Alchemy executives positioned trade-in as a structural alternative to margin-eroding discounts. Stephen Wise argued that trade-in replaces blanket price reductions with targeted incentives linked to asset recovery. This approach preserves pricing integrity on first sales while creating a secondary value stream through refurbished resale. According to Alchemy research, this dynamic has been proven across categories including automotive and consumer electronics, where trade-in accelerates upgrade cycles and strengthens repeat purchasing.
Refurbished demand signals maturity
Alchemy data suggests significant headroom for refurbished electronics adoption. Based on a survey of U.S. buyers conducted in October 2025, willingness to purchase refurbished products reached 39% for smartphones, 37% for laptops and tablets, and 36% for televisions, while smaller accessories such as earbuds lagged at 16%. Stephen Wise described refurbished devices as an entry point into premium brands rather than a form of down-trading, reinforcing their strategic relevance for brand owners.
Scale and circular impact
Alchemy disclosed that it has recovered, refreshed, and remarketed more than 12 million products, returning approximately 2.3 billion Euros in value to consumers. This scale underscores the role of trade-in in extending device lifecycles, improving asset utilisation, and supporting circular economy objectives. For the secondary mobile market, the discussion signalled growing alignment between large retailers and recommerce specialists on trade-in as a core pillar of sustainable growth.
Market
Trade-in
Repair
Refurbishing
