Do you run a repair shop and want to expand? Are you looking for new opportunities to increase revenue? Investing in used mobile phones might be an excellent place to start.
Nowadays, there is a big market for used mobile phones. In 2019, it was at 251.09 million units, but by 2027, it will increase to 459.86 million units. The decline in purchasing power brought on by the global economic crisis that the globe had to experience due to COVID-19, the development of eco-consciousness, and the push to reduce technological waste are the causes of this potential increase.
After COVID-19, commodity prices soared dramatically while disposable incomes decreased. In reality, the cost of living increased by 8.7% in 2022, causing customers to cut their spending and move to less expensive options. As a result, the demand for refurbished phones has increased.
The statistics demonstrate the profitability of the used mobile phone market. So, before entering this market, let’s discuss some typical standard selling practices and how you may utilize them to outperform your rivals while avoiding frequent mistakes.
Used phones and the exchange window
Trust is essential for success in the open-box cell phone business. Building trust is crucial since customers are skeptical when buying a used product. Because of this, retailers provide a “return period policy” so customers can return a defective item. Typically, dealers limit this to 30 to 60 days, depending on the state of the gadget.
A set of guidelines established by the seller outlining how customers can return or exchange things is known as a return policy. Hence, having a customer-focused return policy is crucial.
Customers feel confident purchasing the gadget when there is a clear return policy, which helps both parties. 54% of consumers are less inclined to a product they want from a store with a bad or confusing return policy.
Although the store is only accountable for a limited time, it can influence buyers to believe in them.
So, you wonder, how can I stand out? Offering an extended warranty may set you apart from competitors by demonstrating to customers your confidence in the used phones you are selling and your willingness to assume responsibility in the event of a problem.
Establish an exchange/return policy.
Customer experience is a component to pay attention to in today’s market since it may make or break the transaction for you. The experience is more pleasant for both parties if there is a framework for exchanges and returns.
Efficiently track and handle customers’ returns with a return management system with CellSmart repair POS software.
With the right system in place, you can manage and track your exchanges and returns, relist things in your inventory following inspection, and keep track of the financial effect of your returns from the seller’s perspective. Also, this adds automation to your store, increasing efficiency.
With CellSmart POS software, you can manage returns and exchanges in less time.
Giving customers a good experience is essential since they frequently base their decision to do business with you again on their “shopping experience.
You pay fees like return postage on your consumer returns an item for a refund. It often results in lower costs and a wiser business strategy to convert these returns to exchanges.
Giving customers an incentive to swap their used phones rather than returning them for a refund is one approach to get them to do so. Offer anything special, such as free shipping on returns, giving out free accessories, exclusive discounts, etc.
Upselling is another strategy. An excellent way to persuade customers to give up on returns and choose exchanges is to provide the option to replace your gadget through an upgrade. To make up the difference, the buyer will also make further payments, which means you’ll also gain recurring business.
Provide store credit
Offering shop credits when a customer returns any used phone is another strategy to encourage exchanges. The customer can choose this, and you maintain your rapport with them. Store credits will also lead to more sales in the future. It means you aren’t technically losing money as you would in the event of a refund. Even while it might not be as efficient as an exchange, this is still preferable to a refund. CellSmart POS makes it simple to issue store credits.