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Why should manufacturers let their retailers refurbish?

Manufacturers are typically opposed to allowing independent retailers to refurbish their electronics as it causes competition with new releases. But much less is known about the effects of when a manufacturer’s direct retailer refurbishes those products.

Subodha Kumar and his co-authors found that all players in the supply chain profited when manufacturers allowed their retailers to refurbish lightly used electronics. Customers also benefited from more pricing options, and the environment sustained comparatively less damage throughout the process.

Policymakers should continue encouraging manufacturers to allow their retailers to refurbish these products, contributing to improved supply chain, customer welfare and environmental sustainability.