The refurbished electronics market is bigger than you might think. By latest estimates, it’s valued to be a $10 billion industry—and that’s only expected to grow as consumers realize that refurbished cell phones, laptops and TVs can provide quality products at more affordable price points. Looking to tap into the growing refurbished electronics market? Here’s what you need to know in order to compete.
Refurbished Products Are Popular
A recent white paper which surveyed more than 1,400 online shoppers, found that 94 percent of respondents have knowingly purchased refurbished electronics in the last three years. And, 75 percent of participants said they are likely to buy refurbished goods in the future. Retailers should take note—buying used and repaired electronics is no longer considered taboo, but an integral part of the consideration stage in a buyer’s journey.
And, Buyers Are Generally Happy With These Purchases
The majority of online shoppers—84 percent—who bought a refurbished product are satisfied with the electronic item, especially given its cheaper cost. (The majority of these buyers say “the deal” is a major draw because it helps them save money and try a product without making a major monetary investment.) As the quality of repaired consumer goods continues to improve, customer satisfaction, and the market as a whole, will grow. This presents enormous opportunity for electronics brands; as these happy entry-level buyers move up the economic ladder, they’re likely to purchase more expensive “A” stock from the same retailers. Not only that, but also these buyers can turn into brand loyalists, sharing their experience with friends and colleagues—and almost nothing beats word-of-mouth recommendations from a happy customer!
Consumers Are More Likely To Buy Refurbished Electronics Online
Eighty-two percent of shoppers prefer to purchase used and restored electronics online rather than in-store. Reasons for this could include the ability to search reviews and more easily compare similar brands and products. Regardless of the motive, what this means for retailers is that a strong and robust online presence is necessary for success. Data-backed e-commerce can help bring in the right consumer that’s ready to buy.
Accurate Details & Warranties Are An Absolute Must—And So Are Brand Names
Even with the benefit of affordability, buying refurbished electronics can make consumers uneasy because they’re a) not sure what to expect and b) concerned there might be no recourse if the product doesn’t deliver on quality or functionality. So, the more information a retailer can provide, the better. Offer insight into product features, let shoppers know whether accessories are included, and post real product photos so that they know what they’re getting. Warranties are key, too. Nearly 70 percent of survey respondents say that the availability of a warranty helps convince them of buying refurbished electronics because it builds trust in the product. And, speaking of trust factor, brand names are highly sought-after for the same reason—consumers have faith in them.