Alchemy research finds £23bn in unrealised trade-in value

UK consumers are sitting on an estimated £23.47 billion of unrealised trade-in value from unused devices.

So says research from circular tech specialist Alchemy. This reckons that brands, retailers and operators are missing a major revenue and loyalty opportunity.

The study, conducted with CCS Insight, and based on a survey of more than 1,000 UK consumers, highlights a mismatch between customer appetite for trade-in schemes and their availability at the point of purchase.

The number of OEMs, retailers and telcos offering trade-in options continues to grow, But only 57 per cent of UK consumers said they were offered trade-in during their most recent smartphone purchase. Just 44 per cent ultimately traded in their device.

Globally, around one billion smartphones reach the end of their first useful life each year without being traded in, The findings suggest trade-in schemes can materially influence customer behaviour and spending.

Almost two-thirds, 64 per cent of UK consumers said a compelling trade-in offer would encourage them to upgrade earlier, shortening upgrade cycles by an average of seven months. Seventy per cent said they would move to a more premium smartphone model if offered a trade-in value above £200.

Trade-in also appears to boost basket size. More than half, 54 per cent of respondents said affordability enabled by trade-in would encourage them to add accessories or extended warranties to their purchase.

Loyalty gains were even more pronounced. Eighty-six per cent of consumers said they were more likely to remain loyal to a retailer or brand if offered a competitive trade-in value, indicating a strong correlation between trade-in programmes and repeat purchases.

Stephen Wise, director of global marketing at Alchemy, said the results show brands are leaving significant revenue on the table.

“Over a third of UK shoppers are not even being asked if they want to trade-in at the point of purchase. That is a massive missed opportunity, not just for revenue and loyalty.When trade-in is easy and rewarding, customers upgrade sooner. They buy more accessories and stay loyal.”

Ben Wood, chief analyst at CCS Insight, said trade-in has moved into the mainstream but requires greater consistency.

“Clear offers and transparent processes will be essential to convert intent into action and meet the huge consumer appetite identified in this study,” he said.

Despite strong interest, several obstacles are holding back adoption says CCS Insight.

Fair valuation is the biggest concern, cited by 34 per cent of UK consumers. Data security fears were raised by 26 per cent, while 18 per cent said they were unaware older devices still had trade-in value.

These gaps highlight the need for clearer pricing, stronger communication around data wiping and greater awareness campaigns at the point of sale.

Alchemy said improved trade-in visibility and trust could unlock billions in additional revenue while supporting sustainability targets.

The research shows untapped potential outside the mobile sector.

Just 18 per cent of consumers reported participating in trade-in programmes for kitchen appliances. Yet 64 per cent said they would consider trading in household electronics suggesting an opportunity for retailers and manufacturers to expand trade-in beyond smartphones.

An appliance manufacturer told Alchemy the programmes were “an acquisition tool, how we bring new customers into our ecosystem”, while others highlighted improved retention among customers who trade in devices.

Alchemy research finds £23bn in unrealised UK trade-in value as consumer demand outpaces availability

UK consumers are sitting on an estimated £23.47 billion of unrealised trade-in value from unused devices.

So says esearch from circular tech specialist Alchemy, which reckons that brands, retailers and operators are missing a major revenue and loyalty opportunity.