Nearly two weeks after ceasing transactions on eBay India, Flipkart yesterday announced the launch of its new platform for selling certified refurbished products. The venture called 2GUD will initially focus on selling certified refurbished devices like smartphones, tablets, laptops, earphones and other electronic items. The products available on the platform will be certified based on their physical condition and signs of usage.
The website will grade the goods on four scales namely unboxed like new (unused), refurbished superb (used minimally with negligible scratches), refurbished very good (moderately used), refurbished good (extensively used with visible scratches) and refurbished okay (will show significant scratches). Shoppers can take a look at the items they want to purchase based on their budget.
The e-commerce site says that all aspects of the device will be tested; faulty parts will be restored and the device will have a warranty of 3 to 12 months. 2GUD assures to do 47 quality checks on the device before assigning them to the above mentioned five categories. 2Gud will also incorporate F1 Info Solutions, a mobile repair and service company Flipkart had acquired, to put the above mentioned process into practice.
Data and Facts on Refurbished Goods Market in India
The reason why Flipkart has apparently taken this is step is because the e-commerce site wants a share in the growing refurbished goods market in India that is set to grow to Rs 1,40,000 crores (approx). India is among the fastest growing markets apart from Africa and Southeast Asia, says a report on the Economic Times. Refurbished smartphone volumes grew by close to 25 percent in 2017 and crossed 12 million units in India, with more than a third accounted for by Apple and Samsung, says the report.
The market is expected to grow 27 percent from 2019 to 2020 as new players continually join existing online e-commerce portals. The reason why consumers are going for refurbished goods is that they can own a premium product of a brand like Apple at almost 50 percent of the price of a new phone. The purchasers are only set to increase in tier 2 and tier 3 markets.
The kinds of refurbished goods are manufacture refurbished (products are repaired by the brand), seller refurbished (product is repaired and sold directly by seller on sites like OLX and Quickr) and Open Box (seal of the product was opened and returned by customer but was unused).
5 Best Existing Players in the Indian Refurbished Goods Market
Consumers usually tend to have a little more faith in the refurbished goods of a premium brand like Amazon. The refurbished products available on Amazon have no visible defect when held 12 inches away, says the e-retail giant. Amazon claims that the products sold on the site are tested and certified to look and work like new by a qualified manufacturer or a specialized third-party refurbisher. Refurbished products on Amazon come with a limited warranty of six months and also have a return policy.
Shopclues is another preferred destination when it comes to refurbished goods. Shopclues sold 5,780 refurbished phones belonging mainly to the brands Nokia and Samsung every month in 2018, says a report on ET. The website is selling basic Nokia and Samsung handsets at prices as low as Rs 800. Apart from mobile phones, the website also sells refurbished tablets and computers.
Togofogo calls itself India’s best ‘Recommerce’ website. Togofogo sells refurbished mobiles, tablets, accessories and watches. The e-commerce site is selling a refurbished Apple iPhone 6 at a price as low as Rs 12,699.
This e-commerce site offers customers and bulk buyers the option to purchase unused, branded open box, surplus, overstock and refurbished products and they claim that it will be at the lowest prices guaranteed. Apart from mobiles and laptops, the website also sells kitchen appliances, home appliances, healthcare appliances like thermometers and BP monitors, and also small appliances.
Excess2sell is a Mumbai-based B2B platform, which enables sellers to connect with buyers. Excess2sell is market place for excess inventory management across verticals like IT Hardware & Software, Telecom, Security, and Home Appliances. Excess2sell believes in a demand driven mediation for movement of excess inventory rather than a brand play or sales driven model.