A strong secondary market reduces e-waste

//DH

Despite increasing awareness of e-waste and the implementation of recycling initiatives in many countries, the electronic waste problem continues to persist. According to the Global E-waste Monitor 2020 report, only 17.4% of the 53.6 million metric tons of electronic waste generated worldwide in 2019 was recycled.

Changing regulations for reducing e-waste can take months, if not years, to approve. But that’s not the only solution. Responsible businesses can aid in turning the tables on the e-waste crisis using the secondary market.

With only a small percentage of e-waste recycled, the circular economy can play a pivotal role in reducing the environmental and health impact of e-waste.

Businesses and major wireless retailers can sell excess and trade-in inventory–electronics and mobile devices in particular–to business buyers who are capable of recycling, reselling or refurbishing said goods. Resellers and refurbishers with an R2 certification are qualified to handle the proper recycling and extracting of precious metals found inside cell phones, such as gold and silver, thus reducing the demand for new mining of these metals.

Whether inventory is overproduced, unpopular, returned unused or well-loved and traded in, electronic goods become obsolete especially quickly compared with other types of merchandise. Thanks to “recommerce,” preowned or refurbished electronics can make their way into the hands of end consumers looking for a discounted or older model. This practice keeps products that still have value out of landfills while conserving resources and reducing greenhouse gas emissions associated with manufacturing new products.

For those responsible for inventory reduction, excess electronics can be a challenge due to the costs of refurbishment, storage, transportation, labor, and other overhead. Pair these issues with mounting customer returns in a fast-moving industry, and businesses have quite a problem on their hands.

Fortunately, there is demand for the goods that businesses might not be able to effectively liquidate with in-house solutions: There is now a genuine opportunity to turn unsold inventory into cash while maximizing operational efficiency and saving on disposal fees and logistics costs.

Businesses can recover the best value for their products through data-backed decision-making. For example, according to B-Stock’s network-wide data, computers and tablets grouped in smaller lots tend to recover more.

This one insight is just the beginning of what a great inventory reduction platform can provide. By using a fully managed asset recovery solution with a broad buyer network, retailers and manufacturers can sustainably sell amounts of surplus that would be overwhelming with traditional methods.

While it’s true that recycling initiatives have had some impact in reducing the amount of e-waste, they have not been able to significantly address the root causes of the problem.

One of the main reasons is the lack of infrastructure and regulations to properly collect, transport, and process e-waste. Even in countries with recycling programs, not all e-waste is properly collected or disposed of, and much of it ends up being exported to developing countries where it is often processed in unsafe and environmentally damaging ways. For example, causing chemical leaching.

Additionally, companies sometimes create products intended to last just a few years. While the intent of this practice is to create a positive and consistent user experience, the unintended result is a constant stream of e-waste.

It’s also worth noting the role that consumer behavior plays. Last year, 5.3 billion mobile phones were discarded. Many people are not aware of the importance of recycling e-waste, and even those who are may not know how to properly dispose of their electronics. Some people may also prioritize convenience over responsible disposal, leading to e-waste being thrown in the trash instead of being recycled.

By tapping into the secondary market, businesses can ease pressure on overfilled warehouses by selling preowned and excess electronics in a more sustainable way. This opportunity not only increases the velocity of a business’s value recovery on said goods but helps reduce waste by ensuring surplus products and materials fall into the hands of consumers. A circular economy is a win-win for business, consumers, and the earth.