Alchemy provides end-to-end solutions that help businesses maximize the value of technology throughout its lifecycle. The company specializes in device trade-in programs, reverse logistics, refurbishment, remarketing, wholesale technology distribution, and lifecycle management services. By helping manufacturers, retailers, carriers, and businesses recover, refresh, and resell technology devices, Alchemy enables organizations to drive sustainability initiatives, reduce electronic waste, unlock new revenue opportunities, and make technology more accessible and affordable for consumers and businesses worldwide.
By John Doughty, SVP of Partnerships, Alchemy
Trade-in has become synonymous with smartphones – and understandably so. It’s a category where resale is deeply embedded and the supporting infrastructure has been years in the making. But that close association has meant that a broader question has gone largely unasked: where else can the same approach deliver equal results?
New research from Alchemy offers an answer. While 44% of US smartphone consumers have previously traded in a device, participation rates in categories like floor care and kitchen appliances remain a fraction of that. That gap represents a significant opportunity, and one that the industry is well-positioned to act on.
The smartphone blueprint
The principles that make trade-ins work for smartphones are well established. Offering credit toward a new device reduces the upfront cost barrier, shortens replacement cycles, nudges customers toward more premium products, and gives them a reason to stay within a retailer’s ecosystem. 90% of US consumers have either traded in before or are open to it in the future – that’s a market that understands trade-in and expects it as part of the purchase experience.
Step outside of mobile, and the reality is very different. In floor care, only 14% of US consumers have ever traded in a device. Among those who haven’t, a little over half (53%) say they’d consider doing so. The pattern holds across other categories too, from home appliances and gaming equipment to kitchen appliances. It’s a clear indicator that trade-in has been normalized in one category and largely overlooked in others.
A proven model, applied more widely
The commercial case for expanding trade-in beyond smartphones is strong. Buyers in these categories own products with real residual value, and the same financial incentives that drive trade-in behavior in smartphones are just as relevant here.
In household appliances, where replacement cycles are typically longer, trade-in triggers earlier upgrades. Customers who might otherwise hold on for another year are more likely to act when there’s a clear financial incentive to do so. This pulls revenue forward and increases market share in categories that can otherwise feel static.
Kitchen appliances tell a similar story. Here, trade-in reduces the price barrier, bringing aspirational products within reach for consumers who might otherwise hold off. When upgrading feels more accessible, purchase decisions that previously felt far away begin to move forward.
In luxury audio, trade-in can serve as a compelling alternative to discounting. Rather than reducing the price of a new product, it gives customers a route to upgrade that keeps the perception of value intact and helps to preserve the premium positioning that defines these brands.
Across categories, trade-in also adds a loyalty dimension. Programs that offer higher trade-in values for same-brand products build a structural incentive for customers to stay within the ecosystem. It’s the same mechanic that has worked so effectively in smartphones, applied to a category where switching costs have traditionally been low.
Why the gap exists
Alchemy’s research points to a genuine consumer appetite for trade-in across categories. The slow expansion of these programs beyond smartphones stems largely from where the industry has directed its attention. It makes sense that trade-in infrastructure – valuation tools, customer-facing programs, logistics frameworks – was built first in mobile and consumer electronics, where the volumes were largest and the demand most visible. The opportunity now is to extend what already exists into categories where those foundations are yet to be laid.
What’s become clear is that this infrastructure doesn’t need to be rebuilt from scratch. The experience and knowledge accumulated in consumer electronics transfers directly. Applying it to new categories is where specialists like Alchemy can help retailers move quickly and confidently.
Awareness also remains a structural barrier. Consumers across categories frequently underestimate the residual value of their products or assume older models have no trade-in value at all. In the US, almost a third (27%) of consumers throw away old kitchen appliances instead of trading them in. Making trade-in a standard part of the purchase conversation, rather than something customers have to seek out, has a measurable impact on participation.
The opportunity ahead
It took years of investment in infrastructure, program design, and consumer education to bring the smartphone trade-in to where it is today. The learnings from those years don’t need to be repeated – instead, they can be borrowed. The framework exists, and the operational expertise is proven. The real question is how quickly retailers and brands can implement a program before it becomes a consumer expectation they fail to meet.
At Alchemy, we work with retailers and brands across categories to design, deploy, and scale trade-in programs – from valuation and logistics through to refurbishment and resale. For retailers looking for their next sales growth lever, expanding trade-in beyond smartphones is an opportunity well within reach.
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