Recommerce, the resale of pre-owned products, is reshaping consumption patterns by extending product life, reducing waste, and lowering environmental impact. Rather than discarding used devices, recommerce channels them back into circulation through refurbishment, resale, or leasing models like Device-as-a-Service. This according to an article written by James Murdoch, founder of Irish Alchemy, for Environmental Protection online.
The model has gained significant traction, particularly in the technology sector, where the growing volume of e-waste demands urgent solutions. Each refurbished smartphone avoids up to 64 kilograms of carbon emissions and saves roughly 76,000 liters of water compared to producing a new one. This environmental payoff is coupled with growing consumer acceptance and business interest.
A business model that supports ESG goals
Recommerce aligns closely with ESG (Environmental, Social, Governance) objectives. By reducing reliance on raw material extraction and limiting the emissions linked to manufacturing new devices, companies meet sustainability goals while benefiting financially. This dual gain makes recommerce more compelling than many purely ethical models.
Strengthens customer retention and loyalty
Trade-in and refurbishment programs encourage consumers to stay within a brand’s ecosystem. Whether through a discount on a new Apple iPhone or access to a professionally refurbished alternative, recommerce opens new revenue streams and creates long-term customer engagement.
For price-sensitive customers, refurbished products can cost 20 – 60% less than new ones, without sacrificing quality. Most also come with warranties and reliable return policies.
Helps protect brand value over time
Effective recommerce programs support the residual value of older models, especially when paired with strong after-sales support and consistent grading standards. Leading electronics brands are increasingly using this strategy to stabilize pricing across marketplaces. However, flash sales and aggressive discounts on new models can undermine recommerce efforts. Brands that maintain consistent pricing strategies generally see stronger long-term brand equity.
Infrastructure and partnerships matter
Scaling recommerce requires robust infrastructure. Reverse logistics, product grading, certification, and warranty management must be built or outsourced. Many brands work with specialist partners to ensure high standards, preserve brand integrity, and focus internal teams on core operations.
A shift that benefits all stakeholders
Recommerce is not a niche solution, it is a practical and sometimes profitable response to global sustainability demands. It reduces waste, conserves resources, and strengthens customer relationships while boosting revenue. As more companies embrace circularity, recommerce is poised to become a default model for modern business.
SecondaryMarket.news fully supports James Murdoch’s view: recommerce plays a critical role in reducing waste, lowering emissions, and aligning business practices with ESG objectives. However, profitability remains a challenge. Margins in the global secondary market are under increasing pressure, driven largely by the rising trade-in values of devices. While higher trade-in attach rates are essential for sustaining the model, their growing popularity has led to record-high residual values, raising important questions about long-term viability and balance across the value chain.
Via: EPonline
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