I had a look at the UK "Amazon Renewed" section, is this the program that is partnered with Ingram Micro? Curous, does Amazon purchase, list and stock the devices themselves or they are providing the platform plus value-added services on the logistics and operation (from Ingram) to sellers? The partnership between Ingram and Amazon makes a lot of sense, a lot of synergies the two share.
I don't have any specific local insights on UK market and channel splits, but I think your estimate and others listed (CCS & CMA) is a good effort and seems reasonable. Generally speaking, tracking the distribution flow from sell-in, sell-thru and sell-out is very messy and difficult, this is especially true for online marketplace channels like Amazon where there are offline retailers also present. In Southeast Asia, the smartphone vendors pour a lot of resources into gaining this visibility and but still struggle for various reasons.
Hi Sheng, many thanks for the feedback, this one is a bit art and science! Although I'm pretty confident the data supplied to the CMA would be comprehensive and accurate, hence the key redactions. Less so for my art/science interpretations ;-)
Regarding Amazon Renewed: I don't believe there is a tie up with Ingram specifically for this programme. I understand the Renewed programme is open to any seller meeting specific quality criteria. The Ingram partnership I refer to in the article is the trade-in offer that you can find here: https://www.amazon-tradein.com/
Combination of art and science is a good way to describe the process of market sizing.
Good to see that Amazon is really driving the refurbished/used phone market so aggresively in the UK. Southeast Asia has a long way to go in that regards, the online marketplaces are still more focused on driving sale of new devices and strengthening partnerships with smartphone brands. Smartphone OEMs also leverage their "official partner/store" cooperation with the marketplaces to influence the listings to their favor.
For example, i know one case where one major smartphone brand's condition for officially partnering with a major marketplace was to remove all the imported set listings (which was the biggest sales driver at the time). Many of the used sets in Malaysia are imported sets so that also indirectly stifled the used device sales in the marketplace.
There are e-commerce sites which focus solely on selling used goods; so naturally a lot of the traffic and sales are naturally there. But have yet to see the major marketplaces (equivalent of Amazon) in the region drive the used device business.
I think different pricing dynamics across regions of also play a factor. In emerging markets like Southeast Asia majority of users purchase devices below USD200, when a user compares the options for a used device priced below $200 vs a brand new Android which has very competetive specs; the new android device is a much more compelling option
Thanks for sharing the insights and figures.
I had a look at the UK "Amazon Renewed" section, is this the program that is partnered with Ingram Micro? Curous, does Amazon purchase, list and stock the devices themselves or they are providing the platform plus value-added services on the logistics and operation (from Ingram) to sellers? The partnership between Ingram and Amazon makes a lot of sense, a lot of synergies the two share.
I don't have any specific local insights on UK market and channel splits, but I think your estimate and others listed (CCS & CMA) is a good effort and seems reasonable. Generally speaking, tracking the distribution flow from sell-in, sell-thru and sell-out is very messy and difficult, this is especially true for online marketplace channels like Amazon where there are offline retailers also present. In Southeast Asia, the smartphone vendors pour a lot of resources into gaining this visibility and but still struggle for various reasons.
Hi Sheng, many thanks for the feedback, this one is a bit art and science! Although I'm pretty confident the data supplied to the CMA would be comprehensive and accurate, hence the key redactions. Less so for my art/science interpretations ;-)
Regarding Amazon Renewed: I don't believe there is a tie up with Ingram specifically for this programme. I understand the Renewed programme is open to any seller meeting specific quality criteria. The Ingram partnership I refer to in the article is the trade-in offer that you can find here: https://www.amazon-tradein.com/
Combination of art and science is a good way to describe the process of market sizing.
Good to see that Amazon is really driving the refurbished/used phone market so aggresively in the UK. Southeast Asia has a long way to go in that regards, the online marketplaces are still more focused on driving sale of new devices and strengthening partnerships with smartphone brands. Smartphone OEMs also leverage their "official partner/store" cooperation with the marketplaces to influence the listings to their favor.
For example, i know one case where one major smartphone brand's condition for officially partnering with a major marketplace was to remove all the imported set listings (which was the biggest sales driver at the time). Many of the used sets in Malaysia are imported sets so that also indirectly stifled the used device sales in the marketplace.
There are e-commerce sites which focus solely on selling used goods; so naturally a lot of the traffic and sales are naturally there. But have yet to see the major marketplaces (equivalent of Amazon) in the region drive the used device business.
I think different pricing dynamics across regions of also play a factor. In emerging markets like Southeast Asia majority of users purchase devices below USD200, when a user compares the options for a used device priced below $200 vs a brand new Android which has very competetive specs; the new android device is a much more compelling option