Surplus to Success: How Retailers Can Cut E-Waste and Boost Revenue

Overstock costs retailers a staggering $562 billion every year, according to IHL Group. But in the world of tech retail, those shelves of unsold devices represent more than just wasted space; they’re a real opportunity to boost revenue and reduce e-waste.

The need to keep electronics out of landfills is growing urgent. E-waste has surged 82 percent in recent years and is now one of the world’s fastest-growing waste streams. That means it’s more important than ever for retailers to find smarter solutions to manage extra stock. The good news is that there’s a simple way to deal with it that helps both the bottom line and the environment: move it through the circular economy.

Rethinking Tech Overstock

Overstock in the tech world isn’t just leftover merchandise that didn’t sell. It includes devices returned by customers, items with minor scratches, or products under warranty that can’t be resold as new. And this pile keeps growing, especially with online shopping, where return rates for electronic devices top 20 percent, compared to 8 percent in-store.

We've struck a solid balance in tech innovation; we still have early adopters who want the latest models, while older ones still have enough functionality for most users. This creates a huge market for overstock devices, appealing to buyers who don’t need the newest tech but still want occasional upgrades.

Holding onto surplus can mean rising costs in storage, shipping and depreciation. And that’s just the cost on paper, as every unsold device represents the labor, energy and materials that went into making it. But this challenge is really a chance in disguise. By finding new homes for these tech products, retailers can turn a logistical nightmare into business value.

That’s where secondary tech comes in. There’s a big market of people who don’t mind buying last year’s model, especially if they can save a bit of money in the process. That demand helps retailers recover some of that trapped margin, while cutting back on waste at the same time.

Turning Waste Into Worth With B2B Marketplaces

Traditionally, moving surplus involves wholesale liquidation that offers next to nothing back. However, new B2B recommerce platforms now offer a better way to shift extra stock, connecting retailers directly with wholesale buyers who want these products quickly and at scale.

It’s more direct, more efficient, and gives devices a second life rather than being left on a shelf or ending up in a landfill. It works both ways, too: retailers make something back, and someone else gets hold of reliable tech for less. Furthermore, there’s an environmental benefit. Refreshing just one smartphone saves about 64kg of CO2 and keeps 200g of e-waste out of landfill. Getting working devices back into circulation has wider benefits for the environment, for the supply chain, and for people who want affordable tech.

The Future is Circular

Overstock doesn’t have to be a headache. With the right channels, it can be a business opportunity with undeniable value. Retailers embracing the circular economy are already seeing the payoff. Tech giants have been doing this for years, and now others have a chance to follow suit by turning surplus into growth and sustainability into competitive advantage.

With resources getting tighter and customers paying more attention to impact, being able to keep tech in use for longer can be a real edge. Because doing what’s right for the planet should also be what’s best for business.

John Doughty is senior vice president of global partnerships at Alchemy, the world’s fastest-growing global circular technology company.