An analysis by Finsur, recently shared by SecondaryMarket.news, highlights that many major European secondary market players are struggling to run profitable businesses. High costs and supply-side price pressures are key challenges. As more companies are entering the European trade-in market. Major retailers and operators are launching trade-in schemes, attracted by Europe’s lower trade-in attach rate compared to the US. EU regulations, such as CE and USB-C requirements, also drive local sourcing efforts.
Trade-in market driven by price competition
Residual value is crucial in the trade-in sector. In 2025, companies offering the highest trade-in value will dominate, as consumers gain access to more transparent price comparisons. The ability to provide the best trade-in price will be the determining factor for success.
Margins are under pressure
Margin is typically generated on the supply side, as market forces dictate selling prices and, consequently, sales margins. The lower the sourcing costs, the higher the potential profit. However, with growing competition in the trade-in sector, acquiring used phones at low prices directly from consumers and enterprises has become increasingly difficult. While margins are shrinking, most companies' cost structures remain unchanged. As a result, financial strain is mounting, and a significant market shakeout and consolidation in Europe appears inevitable. The companies that will succeed are those that can maintain low operational costs through automation while offering the highest trade-in prices via multi-buyer solutions.
Consolidation is inevitable
With profitability under strain, a major shake-out and consolidation of the European trade-in market is expected. Companies that leverage automation to reduce costs and provide multi-buyer solutions for the best trade-in offers are poised to emerge as winners.
Market
Trade-in
Repair
Refurbishing
