With everything becoming so costly, more people are exploring alternative ways to get their hands on tech products. One of the most affordable options people have been going for involves buying refurbished products.
Alchemy partnered with CCS Insights in a survey of more than 1,000 consumers across the UK, and the research found that consumer understanding of refurbished tech, so it looks like refurbished is officially mainstream now.
According to the survey, 72% of UK consumers say they would consider buying a refurbished device across at least one product category.
Who Do Consumers Trust The Most?
88% of the surveyed say they trust manufacturers the most when it comes to selling refurbished devices. The numbers in comparison are 81% for retailers, 75% for telecom operators and 53% for marketplaces.
Stephen Wise, Director of Global Marketing at Alchemy, commented, “There isn’t a demand problem for refurbished products – consumers understand refurbished, they’re open to it and many actively want it. What’s holding back conversion is uncertainty about the specific device in front of them, the warranty behind it and what happens if something goes wrong.
“Every one of those barriers is addressable with solutions available today. Brands that invest in building consumer confidence don’t just win the second sale; they unlock entirely new audience groups and purchasing moments that their new range cannot reach. The brands that take this seriously – starting with the fundamentals of quality, assurance and a coherent consumer experience – will be better positioned to grow as the market matures.”
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It seems like Gen Z is the most interested in refurbished devices with 60% of 18-24-year-olds having already bought a refurbished device, and from 45 interest starts to go down.
70% of buyers say they go the refurbished route because it’s the most affordable option. When asked what discount they would expect versus buying new, 50% of those surveyed said a 50% discount would meet their expectations.
What Refurbished Devices Are UK Shoppers Buying?
Smartphones were at the top with 41% of consumers being open to getting a refurbished device. Next was laptops, monitors and tablets at 34% and 23% would consider refurbished home electronics. This is what consumers look for when it comes to picking their devices:
Reputation – 23%
Quality and accountability – 20%
Data security and customer service tied – 14%
Process transparency – 11%
When it comes to what would motivate a sense of confidence in purchasing a refurbished product, this is what the survey found:
70% say having warranty options would make them more confident in the product.
56% say they want to see a good returns policy and 64% want a return window of at least 30-days. Closely behind, at 55%, say battery guarantees or visible technical checks would add to their confidence in the product. Lastly, 50% want some sort of grading report to see the quality of the device.
Ben Wood, Chief Analyst at CCS Insight, said, “This research gives the industry a picture of where the refurbished market stands and what it will take to grow it at scale. The awareness and the intent are clearly there. The key factor here is consumer confidence in quality, battery health, grading, warranty, returns and seller credibility.
“Building that confidence requires a coordinated response across pricing, warranties, returns, grading and channel. For OEMs in particular, the findings are significant. More than half of consumers are ready to buy refurbished smartphones directly from the manufacturer, and that is a commercial opportunity the industry is only just beginning to fully grasp.”
