Are you not yet running a trade-in program but considering establishing one? Missing the opportunity can make you fall behind your competitors. There’s a high demand for trade-in options so you don’t want to miss out!
Ingram Micro Lifecycle manages trade-in programs for key network operators, plus retailers and Original Equipment Manufacturers. Our solution can be bolted on to full end-to-end device management, including repair and refurbishment to maximize the potential value recovery of assets through recommerce.
Below, we discuss the advantages that trade-in programs offer, for the owner of the devices being traded in and the scheme operator.
There’s an increasing demand and trend towards refurbished technology. These products are an alternative to buying new, catering to eco-conscious and/or budget-minded customers. If you have the infrastructure to do so, you can receive the used products and turnaround them around to be offered to your customers as refurbished stock.
Without facilities to enable direct sales, there is value recovery potential on the recommerce market to consider. By 2028 the UK recommerce market is predicted to reach $12.4 billion, with the US due to hit $292 billion by 2029. The market represents a sizeable opportunity.
You can decide to repair and refurbish the devices before sale to recover maximum value or sell as-is. The trade-in platform becomes an additional source of revenue for you.
By providing trade-in options, you can encourage a new purchase at a discounted rate. Instead of offering cash for the traded-in product, you offer store credit or a set amount off a new purchase. This incentivizes the customer to shop with you for their next purchase. It heightens brand loyalty, strengthens customer retention, increases market share, and bolsters your customer database.
Don't assume that trade-in only applies to single-unit sales from consumers. There’s also a market for business trade-in. On larger volumes, these buyback schemes provide businesses benefits. The benefits below apply to all owners of a device being traded in.
The end-of-life management of the product is removed from the owner’s responsibility. Instead of considering what recycling or waste options are available, this decision is passed onto the trade-in partner. The trade-in partner will have to assess the asset to decide whether it’s financially viable to extend the product lifecycle for another use, or whether it needs to be responsibly recycled.
The original product owner receives a cash sum or equivalent in exchange for product ownership. The original owner can then use this money to fund their next purchase or other acquisition. For businesses, this value recovery can be invested in the next fleet of assets, lowering the acquisition cost.
For data-bearing devices, the end-of-life processing can be a concern. Consumers and businesses don’t want residual data to be left on their devices, potentially accessible by another user. Rather than leaving data-bearing technology in storage as a security risk, processing the device for trade-in means it’ll be wiped. This process should remove all residual data with a compliant audit trail for verification.
Everybody involved in the program, whether supplying the used product, processing the product for reuse, or buying the refurbished product, all have something in common. They’re all helping society progress towards a circular economy.
This means that instead of adhering to the linear economy model, where we take resources, make a product, and waste them, we’re using resources that have been consumed to reuse them over again.
The circular economy has less of a negative environmental impact because it reduces the pressure on harvesting raw materials and manufacturing processes.
Trade-in programs reduce e-waste as they provide an alternative to throwing the technology into landfills. The lifecycle of the product is extended or recycled responsibly. Full products may be refurbished or parts harvested to prolong the life of other similar assets.
Everyone benefits from the feel-good factor knowing they’ve participated in a more sustainable venture and a circular economy.
There are many benefits of a trade-in program that impact the original owner of the device and the program operator. These cover environmental, financial, and commercial aspects, and ultimately support the move from a linear economy to a circular one.
Ingram Micro Lifecycle has been a trade-in partner for the majority of UK network operators as well as many retailers. Our solutions support both online and in-store trade-in. Our team is on hand to manage the set-up and maintenance of your trade-in program.
If you have any questions about the benefits of a trade-in program, or how to start one, then get in contact with our knowledgeable team today.