Why re-commerce of electronics now makes utter sense in India?

In recent years, there has been a lot of talk going about re-commerce in the global market. It has captured the attention of lot of audience around the world. Let’s see what re-commerce is all about and what it has for India.

“Update: ZeroWaste is now InstaCash

What is re-commerce?

Re-commerce or reserve commerce is the re-selling of obsolete and other undesirable goods. Vendors are accessed through electronic systems such as internet or even through physical distribution channels. The transaction is made either for cash payout or in exchange for a different product. Most re-commerce companies deal with payback pricing of goods which is easier in comparison with other options. Re-commercers usually refurbish the received goods and re-introduce the functioning products in the second-hand market. They also recycle non-useful products appropriately.

To lure customers away from online classifieds and offline vendors, re-commerce companies offer product specialization and a more scientific price for the products. In addition to that, they provide higher convenience to bring second-hand products market online.

According to estimates by industry executives, the market for second-hand products is potentially large. It is said that second-hand smartphone sales by themselves may exceed $3 billion this year. Smartphone sales in India nearly doubled to 80.6 million units in 2014, said Kiran Kumar, research manager, client devices, South Asia, at market research firm International Data Corporation Executives say, anywhere between 20% and 40% of that may be available in the second-hand market.

Origin of Re-commerce

The word re-commerce was first coined by the Chief Executive of Forrester Research, George Colony in 2005. Colony referred to re-commerce as a solution to shelf-life issues of consumer electronics because of the rapid updates in product features and functions. 
This drive may seem new to many but its roots began way back in 2006 where the world saw the rise of re-commerce as an industry. With re-commerce companies budding in the major countries, a revolution had begun.

It has reached the Indian soil in much recent years. The growth of this industry is comparatively slow as compared to other countries but it has immense potential in the future. There are various companies across the world working in the re-commerce industry. A few examples are Gazelle in US, and Rebuy in Germany, Re-commerce Solutions in France with Budli being the first re-commerce company in India. ReGlobe, GreenDust, Reboot Systems India, ZeroWaste, YNew, etc are among the other re-commerce companies flourishing in India. These companies procure products not just from consumers but also directly from the company or distributers of the company. 
 
Re-commerce in India

Re-commerce is all set to explode in India. Considering the positive trend of re-commerce emerging in India, there has been a rise in the organized re-commerce of products. However, the maximum market of consumer electronic gadgets is yet to peak. Hence, there is immense potential for re-commerce in our country.

There are certain challenges to the growth of this industry in India. Technology obsolescence and short product life can pose as a problem because the re-commerce industry relies on the consumer’s desire to buy products at an affordable price but which aren’t already obsolete. Another challenge can be the supply liquidity and logistics cost. Inflated logistics costs and assurance of consistent supply liquidity can restrict the re-commerce industry from growing in India.

In future, Re-commerce in consumer electronic devices in India is set to witness a steep growth curve. It is estimated that the industry will grow at a CAGR of more than 35% between 2012 and 2016. It will also open doors for numerous employment opportunities in the areas of Marketing, Technical Inspection, Customer Service, Logistics, etc.

The change in the consumer demographics has played its role in boosting the re-commerce industry. With the increase in brand awareness and household income, consumers are opting for branded and latest goods. Today, the average time a person takes to change his smartphone has come down from about 2 years to 6–12 months. Due to which there is an increase in the flow of used gadgets into the re-commerce market. According to a Greenpeace Report it was estimated that by 2015 two billion PCs will invade Indian homes.

Secondly, with the present trends India is set to become the next manufacturing hub and the crucial target for the rest of the world. Also with the government’s effort of ‘Make In India’, India is destined to see a rise in the manufacturing sector in the coming years. This will benefit the re-commerce industry in a way that genuine product parts can be used as raw materials for the manufacturing of other new products.

Thirdly, the performance of primary commerce is very crucial for the growth of re-commerce. The last 5 years or so have witnessed an immense growth in the sales of electronic gadgets.

About 50.5 million new gadgets were expected to have been sold in India in 2013. This translates to a market value of US$ 17.3 billion or Rs.952.5 billion. Of this, 0.72 million used smartphones were expected to have been sold in 2013, translating to US$105 million.

Therefore, with the market opening up to re-commerce the products, this industry is on a steep rise in India and is bound to take huge leaps in the coming future.

Note: This post was originally published in November 2015 and has been completely revamped and updated for accuracy and comprehensiveness.

ADD TO YOUR FESTIVITIES BY SUBTRACTING OLD ELECTRONICS

The festive season is just around the corner and decorations plus refurnishing activities have begun in almost all households. You might be getting a new paint done or probably revamping the furniture or maybe re-arranging the items to make your home look new, fresh and stylish but wait, what about your old trash-like consumer durables and electronic items? Are you keeping them all with you? Well, that’s not a good idea! Here are a few tips on making your home décor waste-proof.

“Update: ZeroWaste is now InstaCash

1. Stack them, but not at your home

Your old electronics like your TV, Refrigerator, AC or Washing Machine might be biting dust since a long time because you haven’t used it very often or because you’ve got a newer, more advanced one. That is surely not going to be used anymore and will do nothing but lay idle, use up your space and negate the beauty of your décor. We know you are much attached to it but if it’s not going to be used, it’s wise to sell it off at a good price.

2. Forget offline, Go online

So once you’ve decided to sell your old e-trash, you’d think of going to a kabadiwala or a local dealer. But beware; it will consume a lot of your time with a lot of painful negotiations. Even if it’s finally sold you will be unsatisfied because it will not be the price you were willing to sell it for. Best is to not wait and connect with online buyers of e-trash and they will give you good deals!

3. Cash on your oldies

You’ll have to carry your electronics all the way to the local dealer or kabadiwala which will cost you money, time and energy. You won’t have to go through these hassles if you choose to sell it online. You can get a good option of getting a free calculated quote on the web portal and they will come to your home to pick up the e-trash and give you instant cash with maximum value and without any negotiations.

Now, thinking what to do with the cash? Buy gifts for your loved ones or just relish some sweets for adding that extra space to your home and subtracting idle e-trash.

Note: This post was originally published in October 2015 and has been completely revamped and updated for accuracy and comprehensiveness.

A B C of Overused Electronics

Does your washing machine make you stand all along, holding the wash button just so that it can work? Does your fridge door almost come apart or make huge noise whenever you open your fridge? Almost everyone has electronic items at home that are too old to be repaired. Either you give them away to your local kabaadiwala or contact us for a better deal.

“Update: ZeroWaste is now InstaCash

However, we also have some items that are neither too old nor too new to be replaced. What are we supposed to do with these items?

If you have found yourself asking the question — Is my TV / fridge too old and needs to be replaced or can work a few more years? Well, it is an important question because we certainly don’t want to lose out on good products just because they are a bit older than their fancier cousins. And we certainly shouldn’t be throwing them away if they are in a good shape.

So here is a 4-point guide to help you understand if it’s time for your products to retire or if they can still be used for a few more years.

1. Abrupt Breakdowns

Broken-Refrigerator

Have you ever wondered why your refrigerator conks off at times, only to work splendidly when the repairman comes? Old gadgets and electronics break down abruptly and sometimes without any reason. If the problem happens at least once a month, then it would be better to replace it before it conks off completely.

2. Big Bills

woman shocked by a high bill. Image shot 2008. Exact date unknown.

A key sign to understand if your electronic item is being overused is to check for an increase in electricity bill. If your electricity bills have suddenly gone up for no explainable reason, try switching off the suspected item for a month and see if it really is to be blamed.

3. Cost of Maintenance

Washing-machine-W8_1965046c

It’s sometimes cheaper to buy a new electronic item than getting the older one repaired. For instance, an old fan’s motor or a microwave’s spare part might come at a quarter of the price of the new one. If you think the repairing and spare parts cost you almost 50% of a new product’s cost, it would be wise to get rid of the old one but a new product.

4. Decreased Performance

Broken-TV-540x401

Over time, the performance of all electronic gadgets decreases. Fans make too much of noise, TV screen becomes grainy and the speaker’s sound reduces or the air conditioner doesn’t cool the way it should. These are all signs of ageing of your electronics. No amount of servicing or repair can get your electrical item work like earlier.

These are the guidelines on your agenda list to check for all your old electronics. And while you are at it, Diwali is coming. How about buying a new washing machine or fridge for your home?

Note: This post was originally published in October 2015 and has been completely revamped and updated for accuracy and comprehensiveness.