Refurbished goods have experienced a major resurgence in popularity among consumers over the past 3-4 years. More and more, retailers and manufacturers are refurbishing returned products as a way to: 1. capture more value from the returned items and 2. reduce the amount of e-waste they generate by tossing broken returns into the landfill. The market for refurbished returns is now in the neighborhood of $7-$8 billion of wholesale sales in the US and EU.
The great thing from a consumer’s point of view is that they are able to save around 25% (sometimes much more) by buying refurbished electronics instead of new. If factory refurbished (that is, refurbished by the original manufacturer), the product will come out virtually as good as new. Even third party refurbishers can do an excellent job and will often provide a warranty on the products they sell.
For small businesses looking for secondary market liquidation inventory to grow their business, buying refurbished goods is a great opportunity. Refurbs are generally ready to sell, requiring no additional work by the reseller to get the product into salable condition. Furthermore, buyers will pay a premium for refurbished goods vs. buying used goods that require repair.
The keys to successfully selling refurbished electronics are: 1) buy smart. As with any secondary market inventory, you have to buy at the right price that leaves you room to make your required margin. 2) market your products well so that you maximize the retail price you are able to get when you sell. Promote the quality of the refurbishing work and any warranty that comes with it.
The refurbished electronics aftermarket is enormous. The opportunities to make money in the market are everywhere but you have to be smart. Buy right and promote what buyers care about to maximize your profit potential.
B-Stock Solutions marketplaces that often sell refurbished goods are: