Are you looking to better understand the considerations consumers make when it comes to refurbished technology?
There are several reasons why refurbished technology is an attractive offering, and also why consumers have hesitations.
Ingram Micro Lifecycle works around the globe, uplifting the quality of technology product returns via repair and refurbishment processes. Through our innovative and market-leading solutions, we maximize the potential for value recovery and product reuse through secondary market sales.
Below, we uncover the main factors influencing consumer purchase decisions for refurbished products.
One report estimates that the UK repair and refurbishment is worth £1 billion per year and that most retailers fail to maximize the potential for value recovery and additional sales. The high-value potential is a strong indicator of the desirability driving these products.
Cost-conscious consumers will find refurbished products more desirable than brand-new ones as the price tag is always lower. Preloved products are a more affordable option, and often it’s not only older models of available products but new ones too.
The prices of brand-new products may be unattainable for some consumers, which means refurbished products target a different segment of the user market.
Some refurbished products may not be grade A (like new condition) and may show some cosmetic defects which will lower the purchase price even further. For consumers who want a fully functional product and aren’t too worried about how the product looks, seeing this reflected in the price is appealing.
The provision of warranties with refurbished products is becoming more common. These reassure the potential buyers that the quality will be as expected, lowering the risk of encountering issues, such as poor quality or functionality.
They can purchase with increased confidence knowing that the warranty will protect them, facing no quibbles if they need to return the product, if the terms are met.
Refurbished products aren’t subject to the same logistic processes as brand-new products. They are typically more readily available, coming straight from stock instead of being shipped from overseas manufacturing plants, for example.
New products can sometimes have shortage issues if there’s a delay in manufacturing or supply issues of a certain part. Stock availability of refurbished products is more black and white.
As a more environmentally friendly option, choosing used tech over new uses less resources. It avoids the resource costs of brand-new products, such as naturally occurring and finite materials.
Through the lifecycle extension of a product already in circulation, the move is made to a circular economy, away from a linear one. Less waste is generated, which, if becoming landfill, is harmful to the environment.
The tactics and processes used to repair and refurbish technology are improving, with more innovative solutions being deployed. These make it easier and quicker to uplift the quality and function of a used product, delivering better yields, more successfully.
Examples include LCD repair (restoring mobile phone screens) and Diamond Substrate Polishing.
Consumers may lack the education or information to understand that refurbished options are available, or what this entails. Some people may believe the stigma surrounding refurbished products; is that these are defective or of lower quality. They need better access to information through marketing to understand the benefits of reconditioned products.
Consumers will always fear losing money or time, especially during cost-of-living crises. They need transparency to understand exactly what they’re getting for their money and reassurance of the support they’ll receive if something goes wrong.
Detailed and clear information should be given to them during their decision-making when it comes to the quality and functionality of the product. If it’s described as “like-new”, then they will expect it to perform like a new, out-of-the-box product. If it isn’t, then they lose their trust in the brand they’ve purchased from.
Warranties and quality guarantees are a way to reassure customers that they have protection if they’re dissatisfied with the refurbished product.
Consumers may believe that the device they’re buying isn’t up to the same standards as a new device as it may contain fake, counterfeit, or lower-quality parts. These will lead to poor performance and lower quality, impacting customer satisfaction.
Repair and refurbishments can meet manufacturer standards if conducted by a company with the relevant OEM accreditation. These accreditations provide access to genuine parts from the manufacturer and manufacturer-approved guides. As part of the accreditation process, audits check processes and equipment to ensure the repairs and refurbishments are completed to their approved standards.
Nearly 25% of respondents in a YouGov survey indicated that they were concerned about security or privacy when purchasing a refurbished phone.
Data-bearing devices must always be securely and compliantly wiped using trusted software before being put out onto the secondary market. This ensures the next user has no issues with personal data resurfacing.
While there are still some reasons why consumers are wary of refurbished technology, there are equally solutions to ease their fears. Being transparent and working with the best repair and refurbishment partners ensures you’re managing customer expectations and delivering products that meet their needs. There are also positive and encouraging signs that the refurbished market is growing, providing desirable products for consumers.
Ingram Micro Lifecycle operates repair and refurbishment programs for well-known consumer technology brands globally. As a result, our customers experience high NPS, increased yields of refurbished product returns, higher value recovery, waste reduction, and lower carbon footprints.
Contact our team today to discuss how we can recover value on your returned products, or supply refurbished goods to maximize the product lifecycle and enable a circular economy.