What comes to mind when you think of secondhand goods? Is it pre-owned cars, vintage clothing or refurbished furniture? These items have been popular in the secondhand market for years, but now there is another consumer good taking the spotlight in the “recommerce” market: mobile phones.
Recommerce, the practice of buying and selling previously owned, gently used products, has existed for centuries. Today, it has evolved and taken a new form with the rise of sustainable living and environment-conscious purchasing choices. Indeed, according to a recent study by NielsenIQ, 78% of consumers feel that sustainability is important, and they want to lead more eco-friendly lives – demonstrating a greater awareness of their impact on the planet.
The mobile phone space also felt this shift to more intentional purchasing decisions — in 2022, sales of mobile phones in the secondary market totaled $35.9 billion, a 20% year-over-year increase. What’s more, from 2022 through the first quarter of 2023, the recommerce of mobile devices grew an impressive 14% year-on-year at a time when equivalent sales of brand-new devices slipped 2%.
It is clear that mobile phones are now the new frontier in recommerce. For those who haven’t already jumped on the bandwagon, here are three reasons why you should now:
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One Man’s Trash is Another Man’s Treasure
In the U.S., the average new smartphone price rose from $409 in 2016 to $735 in 2022, reflecting an annual gain of 11% — over three times the rate of inflation in that time.
Meanwhile, gently used phones are on average 10%-15% less expensive if bought secondhand within the first few months of the model’s release, and this percentage increases up to 50% when purchased years later. By buying a pre-owned device, you can access technology that you may not have previously been able to at a fraction of the price. Some companies are making the recommerce process seamless and more convenient than ever before, and people can purchase from a growing selection of refurbished and certified pre-owned phones online any day, at any time, in just a few easy steps. No lines, and no need to be on hold waiting for a customer service representative for hours.
In addition, not only does buying secondhand reduce financial barriers to purchasing a device, but the used smartphones market helps extend the lifespan of devices – which, on average, is less than two years, according to research from the Yale School of Environment.
More Money in Your Pocket
In 2022, most U.S. adults held an average of $2,459 worth of unused electronics, including smartphones. This statistic shows how there is a major untapped opportunity for consumers to partake in the “re-conomy” and earn quick cash, by selling their devices that are currently laying around the house through a recommerce company.
For instance, ecoATM and Gazelle buy pre-owned devices and recycle or refurbish them for resale. Recently, we have found that used Apple, Google and Samsung devices that power on and were released in the last three years can reap around $131 in profits for the device owner.
With the above figure in mind and knowing most adults have several unused devices at home, many people are missing out on the chance to add a few extra dollars to their pockets by not selling or recycling their smartphones.
Reduce E-Waste for a Cleaner Planet
The U.S. alone generates around 6.9 million tons of e-waste each year that ends up in landfills. What’s worse, Americans are said to dispose of 416,000 cell phones per day, and only 15% to 20% of e-waste is recycled. These staggering statistics show the gravity of the e-waste crisis.
One quick and simple way to be a part of the solution is selling your devices through a recommerce company instead of throwing them away or letting them sit for years in a junk drawer. Recycling old technology extends the lifestyle of phones, conserves raw materials, supports sustainable living and promotes a circular economy. Whether you are recycling, selling or buying a refurbished device, you’ll have a positive impact on the environment by reducing the demand for a new product through repurposing a pre-owned device and ensuring that e-waste is disposed properly.
What’s more, consumers are hungry for more recycling options. A survey from the World Economic Forum revealed that 94% of Americans support recycling, but only about 50% of them recycle, with lack of convenient access being the top reason they don’t. This shows there is a need for companies and organizations to help bridge the recycling gap and provide convenient solutions.
So what’s next? I don’t have a crystal ball, but based on the recommerce industry’s recent growth, I believe the market will further permeate our daily lives. Demand will continue to grow for gently used consumer goods, including mobile phones, which I anticipate will eventually rival the popularity of pre-owned cars and apparel.
Looking ahead, recommerce can lead to expanded access to technology by lowering the financial barriers to ownership while offering financial benefits and reducing the number of devices that end up in landfills – helping humankind and our planet.
Stan Pavlovsky is CEO of ecoATM Gazelle, a global leader in mobile device recommerce. ecoATM helps consumers recycle or sell their devices. Gazelle provides consumers with options to purchase or trade in certified pre-owned or refurbished devices.
