Today, consumers aren't just after features and prices. They want an option to return and upgrade their new tech devices and products. That's why preplanned product buyback is the new normal.
Preplanned Product Buyback Drives a Massive Market Shift
This year started with a game-changing event for the retail industry.
In the smartphone product category, 50% of consumers chose preplanned product buyback. This milestone occurred at Komplett, the largest e-commerce provider in the Nordics.
What led up to this? There are a few reasons.
First of all, the ability to create a convenient customer journey. We have made it extremely easy for merchants to provide preplanned product buybacks.
Brands and retailers can offer a seamless customer experience by adding product buyback at checkout as an additional payment option.
No risks or headaches in building complex payment systems on your own. Just choose Fairown and we do all the rest, from embedded product financing to delivering a payment platform with your custom branding. The customer enjoys a quick and frictionless experience.
Why Do Consumers Choose Preplanned Product Buyback?
While manufacturers and retailers are keen to keep up production and sales cycles, consumers often find themselves on the receiving end.
That is managing the hassle of reselling their used products. The hassle is real, so no one wants to hear about it.
How many old devices are lying in your drawer? Second-hand marketplaces rely purely on consumer action, so they’ve failed to deliver on the circular economy.
The resale process is inconvenient and cumbersome, from making a listing, finding a buyer, setting the price, to logistics and data wiping from the old device. It shouldn’t be left on consumers’ shoulders alone.
Why do over 100,000 consumers choose preplanned product buyback at checkout?
Because it solves an actual problem. People want to use the latest products, but hate the hassle of resale.
Fairown Buyback removes the hassle of resale by enabling consumers to return their product to the point of purchase. The product is then refurbished and resold, driving the circular economy and product reuse.
It’s About Time to Pivot to the Circular Economy
We talked about why consumers prefer preplanned product buybacks. But what about the environment?
Selling products without agreeing on buyback terms is causing an environmental disaster.
In 2022, 5.3 billion mobile phones were thrown away, sending valuable materials to landfills. The inconvenience of reselling products that are no longer needed causes major problems around the world. And that is just the tip of the iceberg.
The journey to sustainable consumption must start at the point of purchase to prevent the generation of excessive e-waste, the fastest-growing waste stream in the world.
We are a trusted partner for leading manufacturers and merchants in nine European countries. Dozens of well-known brands have chosen to partner with us and take responsibility for this burning issue.
Preplanned Product Buyback: Making an Impact, While Powering Business Growth
It’s all rosy and who wouldn’t like to save the environment? Let’s talk about numbers.
In 2023, preplanned product buyback turned over €59 million worth of products. This is just the beginning.
Even more, preplanned product buyback:
generated up to 60% repeat business for merchants, depending on return channels and product categories;
ensured consumers a 34% increase in purchase value when upgrading products:
helped us save 230 tons of CO2 - enough to power a household for 21 years.
The remarkable 60% of repeat business in retail, and the lowest price point for consumers when returning their used product is not all.
Turning one-off purchases into recurring revenue results in bigger cart sizes, higher sales margins, and returning customers.
That’s why more and more brands see the enormous value in preplanned product buyback, a trend prevalent not only among merchants but also among financiers.
Take the first step today to attract more customers!