How tech recommerce is quickly becoming the next big thing

Retailers need to pay close attention to the biggest shift in consumer behaviour

When co-founder Matt, and I launched Reboxed back in 2019, we were driven by a personal experience that most people can relate to: the frustration of sifting through endless eBay listings without a clue whether or not the second-hand tech I was viewing was of good enough quality.

The back-and-forth conversations with the seller, the doubt over their honesty, and the stress of potentially wasting money I didn’t have felt like too much of a risk. That’s when the idea for Reboxed came about. It initially began as a direct-to-consumer platform and has now evolved into both a D2C store where consumers can get the latest tech without the new price tag and a B2B platform where we offer brands and retailers a reliable way to give their customers the opportunity to buy and sell quality second-hand tech using our software and supply chain

We realised just before the pandemic that we weren’t the only ones in need of more used goods. There were significant shifts in consumer behaviour toward used products, and this trend, already evident in fashion and automobiles through platforms like Depop, Vinted, Carwow, and Cazoo, was now spreading to electronics.

McKinsey’s 2021 research showed that younger consumers, particularly Gen Z,  were driving this surge in second-hand shopping with more than 60% of the generation indicating that they look for used products before purchasing new ones.

While this research largely focused on the broader trend of second-hand shopping like fashion, the demand for affordable electronics surged during the height of the pandemic and lockdown as more people worked and studied from home​.

People wanted cheap but properly functioning products and who could blame them?

Second hand tech, the new new

Others have caught on, and the demand for refurbished tech is growing. In 2023, one-quarter of all mobile phones sold in the UK were second-hand or refurbished, up from 19% in 2021, according to data from GfK UK's Tech360 survey.

I firmly believe this figure could reach 50% by 2030.

The increasing demand for sustainable, affordable options made it clear that the market was ripe for transformation, and we needed to act quickly. Thankfully, what we saw was more than a temporary change; it was a fundamental shift in consumer behaviour and it's only getting stronger from GenZ, who seem to be educating themselves and other generations,

In fact, 80% of those born between 1997 and 2012 buy second hand goods, according to research collated by our team over at Reboxed.

Earlier this month, a report by Enders Analysis revealed that new handset sales by UK mobile operators have been weak for some time as customers keep their phones for longer due to affordability issues, slowing technological advances, and the spread of longer handset contracts.

The average UK smartphone replacement cycle has extended to 3.3 years, up from 2.4 years in 2016, according to CCS Insight. People are holding onto their tech for longer and last year in the UK, a quarter of all mobile phones sold were bought second-hand or refurbished, up 19% from 2021.

Although margins on handset sales have historically been slim, their "erratic nature" can still significantly impact overall profitability.

The recent Enders Analysis report reveals that major UK networks like VMO2 and Vodafone are taking substantial hits as consumers shift away from purchasing new devices and traditional contracts. In fact, the report estimates that the 20% decline in handset sales at VMO2 and Vodafone has had a 6-9 percentage point (ppt) impact on their EBITDA.

This shift underscores the need of transitioning to recommerce models.

Beyond the environmental benefits of promoting the circular economy, recommerce is becoming a commercial imperative for both network operators, retailers and brands.

As consumers increasingly choose second-hand tech over new, recommerce provides a more sustainable and financially viable path forward for both businesses and consumers.

Where do we come into all this?

In the last three years, my team and I have been able to capitalise on this shift to build Reboxed into an out-the-box solution for consumer electronics recommerce. The platform helps brands launch and scale co-branded resale, launch trade-in and recycling programmes quickly, and easily to boost revenue and sustainability.

Gone are the days of sifting through dusty car boot sales to find what you need at a fairly good price and even better quality.

Today, recommerce requires an enhanced digital experience and connected journeys that keep shoppers engaged from the initial sale through to trading in their used devices. Retailers need to move beyond fragmented efforts and embed circularity directly into their strategy. That’s where we come in.

At Reboxed, we’ve developed ReboxedOS, our operating system for delivering circularity at scale. By integrating our technology, supply chain, and brand expertise, retailers and brands can quickly launch resale, trade-in, and recycling programs that drive revenue, enhance customer satisfaction, and accelerate progress toward sustainability goals.

We align key stakeholders, across supply chain, commercial teams, and sustainability efforts, to create a cohesive, end-to-end experience that is scalable and impactful. We call this “Circularity as a Service™.”

The name comes from the idea that the software as a service industry (SAAS), retailers and brands can utilise the ReboxedOS technology, supply chain and brand without having to invest in building their own infrastructure.

Take Three’s SMARTY as an example. They turned to Reboxed for a comprehensive recommerce solution, from stock management to a go-to-market strategy. This collaboration led to increased customer tenure and reduced e-waste, carbon emissions, and water consumption, thanks to seamless customer journeys and excellent integration.

"Reboxed has helped us deliver increased customer tenure, as well as significant environmental benefits by reducing e-waste, carbon emissions, and water consumption. This was achieved through excellent customer journeys and seamless integration,” said Ollie Carrier, one of the company’s management leads.

While the journey has been far from easy, with us having to navigate everything from supply chain disruptions, investor scepticism, and the complexities of refurbishing tech at scale, every hurdle that has come our way has only strengthened our resolve and core mission to rehome a 100 million devices.

Matt’s background in branding and youth culture, including co-founding GRM Daily, the UK’s leading youth culture website, and my experience in strategy and sales with Disrupt, a social marketing agency, have been instrumental in getting us to where we are.

Although we lacked direct recommerce experience initially, our background in building global brands and understanding consumer behaviour proved valuable. My personal journey with used tech devices also fueled our passion for finding a better way to improve and innovate the second hand experience. 

We’ve seen firsthand the shift toward conscious consumerism, with a growing focus on the environment and affordability. We've realised that helping retailers and brands scale their recommerce programs will play a significant role in driving positive change.

This firsthand experience with consumers' pain points helped us build a brand and secure  over £2 million in investment from big names in retail and recommerce. Our roster of investors includes the founders of leading UK tech trade-in companies Mazuma and Envirofone, as well as Lohan Presencer, Chairman of Ministry of Sound; Nick Neighton, former CEO of ASOS; and Martin McCourt, former CEO of Dyson. We are also backed by the British business fund, ACF.

And our agency background meant we’ve been able to successfully reach our target audiences, and work together with clients

As the first certified B Corp in this space, we've also assisted brands like Three Mobile, Lebara, and Airtime Rewards in launching recommerce programs and have planted over 60,000 trees to offset carbon emissions

Recommerce in consumer electronics is an area that urgently needs attention, with e-waste expected to hit 82 million tonnes per year by 2030, according to the United Nations. But if just 50% of Brits switched to refurbished devices in 2024, they could collectively save 63,750,000 kg of carbon emissions.

There’s plenty of research out there that explains why this is an important issue that needs to be addressed now.

But what’s important to remember is that this isn’t just about providing consumers with high-quality second-hand products; it’s about helping to reduce e-waste and keep devices in circulation for longer.

So all Businesses can and should get on board as well.

The recommerce Revolution

Businesses in other sectors have also recognised the importance of recommerce.

In 2022, the recommerce market saw rapid growth, with brands like Rolex, Peloton, and Lululemon embracing this sustainable model. Platforms such as Poshmark, ThredUp, and Backmarket are also expanding, indicating a clear appetite for sustainable and cost-effective alternatives to new products.

Luxury consignment platform The RealReal raised $300 million during its IPO, signalling strong investor confidence in resale and a clear demand for sustainable and cost-effective alternatives to new products.

Recommerce is about how we can contribute to the environment, and with businesses and retailers being held more accountable, this is one big way they can do it, particularly in the electronics industry.

Over three years, we built Reboxed as a pioneering recommerce platform. We knew that by bridging the gap between consumer demand and the necessary innovation for retailers and brands to adopt circular commerce, we could accelerate the transition to a circular economy for everyone.

Both established retailers and new entrants are now highlighting the used and refurbished market, transforming it from a niche segment into a mainstream opportunity. We are at a pivotal moment, and the shift away from new products is more than a trend; it’s a fundamental change poised to accelerate.

The growing demand for refurbished tech: a mainstream movement

The demand for refurbished devices is skyrocketing. This shift is no longer niche—it’s mainstream. But to fully realise this potential, retailers must rethink their approach to circularity. It’s about more than just offering trade-in programs; it’s about aligning every aspect of the business—from supply chains to customer service—around the principles of a circular economy.

We’ve seen this firsthand with our partners, who have successfully integrated ReboxedOS into their workflows with our circular services:

• ⁠Re-store: Co-branded resale platforms and devices
• Re-circulate: Digital & in store Trade-In programmes
• Re- box :Returns, Repair and Refurbishment solutions
• Re-Generate: Measure your sustainability impact and commercial data.

Looking to the future: shifting focus from D2C to B2B2C

As outlined in our recent Reboxed report, The Future of Circular Electronics, 65% of Reboxed® customers purchasing refurbished devices for the first time, and 57% of Gen Z considering resale value before buying new lifestyle items, the market is ripe for disruption and retailers and brands must transition to circular business models.

More and more consumers are seeking high-quality used devices at competitive prices, often choosing higher-graded, reboxed products. To meet this demand, trade-in programs, repair capabilities, and circular propositions must be integral to business strategies. When done right, these initiatives will enhance commercial success and reduce carbon footprints, a win-win for both businesses and the planet.

We have a unique opportunity to rethink circularity and collaborate with our partners in innovative ways. The old, disconnected approach between sustainability and commercial interests needs to evolve. Circularity should no longer be seen as just a sustainability goal but as a core strategy that drives revenue, builds customer loyalty, and cuts carbon emissions.

In our new free eBook, you’ll find a deep dive into the trends, statistics, and expert opinions that highlight the benefits of circular commerce. The report is an important component of our larger mission to empower brands with the support and technology they need to meaningfully participate in the circular economy

You’ll also learn how to implement successful recommerce programs, integrate sustainable practices into your business model, and stay ahead of consumer demand for affordable, eco-friendly tech.

Having successfully run agencies for global brands, we see this as an evolution of the core business model, one that allows us to scale with partners. We’ve already proven this model’s success with our initial clients in the UK, helping brands like Three Mobile, Lebara, and Airtime Rewards launch recommerce programs and expand into refurbished tech.

As we fully launch our Reboxed recommerce platform this month, this is just the beginning. We envision a future where every business embraces circularity as an essential strategy.

Whether you’re a retailer looking to enhance your sustainability efforts or a consumer ready to make your next purchase more planet-friendly, we invite you to join us on this journey.

Together, we can make second-hand tech the first choice for everyone.

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