Would buyers be willing to buy a product that is not spanking new, or untouched and snugly sitting in its box? Apparently, they do. Buyers are game to go in for refurbished products, as long as it gives them a good discount.
Amazon India is considering launching a separate section for refurbished products. The leading etailer is joining hands with Surpluss.in, a website that sells refurbished mobile phones of leading manufacturers.
Amazon is getting enquiries from other vendors who deal with refurbished products. The company plans to expand in this segment, says Noor Patel, director of Category Management of Amazon India. “More sellers are expected to launch on our site soon in this category,” Patel says.
eBay is also planning to head straight into the business. It is collaborating with eight companies that are involved in the trade. eBay has tied up with Green Dust, i2cworld, Budli Int, Value Cart, among the eight, to sell refurbished mobiles, laptops, and tablets. eBay India vice president and MD Latif Nathani says that ‘eBay choices’ (the new refurbished wing of the ecommerce company), will give customers good deals for this category. “We not only aim to increase the offering of refurbished goods on our platform but also build trust and awareness around the segment by offering products from certified refurbished partners only,” he said.
Refurbished products are those products, (specifically gadgets) that have been returned owing to some minor manufacturing defect, and repaired and replaced for sale. Similarly, an unboxed product is one that has been removed from its box, but has not been used. They come with a warranty and guarantee.
There is a market for refurbished products in foreign shores, albeit a small one that needs nudging. This article on howstuffworks explains how the market works. The article says that refurbished need not translate to used or damaged. It is the sale of a product that goes through a round of checks by experts. It talks about the hesitation that naturally comes up when one hears the words ‘returned’ or ‘defective’, and tries to dispel the myths that are associated with refurbished stuff.
This interesting study by Markets and Markets says that the refurbished medical equipment market is set to touch $9.37 billion by 2019. The study covers North America, Europe, Asia-Pacific, and the rest of the world.
The market for refurbished products in India today stands at roughly Rs. 1.29 lakh crores. This figure is expected to go up to Rs. 3.24 lakh crores by 2020. Etailers are slowly realising the potential of this untapped industry.
It looks like the young generation has no qualms about owning a ‘slightly soiled’ product, as long as it comes with a reasonable warranty and guarantee. Refurbished products being a greener option, it looks like the industry is set to peak in India in the next few years.
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