The trade-in gap: most US shoppers want it, but only half are being offered it

Trade-in has quietly become part of how Americans shop for technology. Nearly eight in ten US consumers (78%) say they think about trading in their old devices, and almost four in ten (39%) consider it even when they aren’t actively looking to buy.

Yet the opportunity is going largely untapped. Only half (50%) of US shoppers say they were offered trade-in at their last purchase, according to new research from circular technology company Alchemy.

The study, conducted for Alchemy by FDM CCS Insight, surveyed 11,217 consumers across the US, UK, Germany and Poland. Its central finding is that simply having a trade-in program isn’t enough. To change behavior, it has to be easy to find and worth using.

Trade-in as an upgrade engine

When the value is right, the research shows trade-in pushes consumers upmarket. Three quarters (74%) say a competitive trade-in value would make them more likely to choose a higher-end product than they had planned. A similar share (76%) say they would upgrade sooner if their preferred brand offered good trade-in value, and 68% would be more likely to add accessories, warranties or other items to their basket.

It also changes how people see the brands offering it. Seven in ten (71%) say trade-in improves their perception of a brand, with affordability the main reason: 44% say it makes upgrading feel more affordable.

For many shoppers, trade-in is what makes a premium purchase feel within reach. Seven in ten (72%) see it as a smart way to get value back from old products, and upgrading to a better model is the single most common reason people trade in (29%). Asked what would make it easier to buy a more premium product, consumers ranked a trade-in discount first (37%), ahead of paying monthly (29%) and subscription options (21%).

Value and clarity still hold shoppers back

The catch is that many consumers aren’t convinced current offers are good enough. Value is the deciding factor: 27% say the value offered is the main thing that determines whether they trade in, 22% want values presented more clearly, and 21% say they would benefit from knowing that older products still hold value. As the report puts it, well-designed trade-in makes upgrading feel less like spending and more like getting value back.

Shoppers also want certainty. Two thirds (67%) say a guaranteed price lock after an online quote would increase their trust, and 64% want the option to get their product back if the final valuation differs from the estimate.

“One of the clearest signals of how competitive a brand is”

Stephen Wise, Director Global Marketing at Alchemy, says the findings show how far trade-in has come:

“Trade-in has moved well beyond a sustainability initiative or a way to reduce the cost of a new device. It is now one of the clearest signals of how competitive a brand’s overall proposition is – and consumers are telling us they are prepared to choose, and stay with, the brands that get it right.

“The research is a strong vote of confidence in trade-in. The brands that pair competitive value with certainty, transparency and choice will be the ones that win new customers, deepen loyalty, bring upgrades forward and recover more devices for a second life.”

The full research report is published on Alchemy's website in two free playbooks. The first is designed to help brands already active in trade-in optimize their programs, while the second is tailored to provide insights for those new to the space to help them grow nascent programs. Visit Optimizing established trade-in programs or Building participation in emerging trade-in programs, or contact Alchemy to learn more: wearealchemy.com/contact.