Starting a Mobile Recycling Business

Interest in recycling and environmental sustainability is on the rise. As a result, there has never been a better time to start a business refurbishing mobile phones. Over 1.5 billion mobile phones sell each year. Customers replace perfectly functional devices with newer and faster models, so many phones get discarded.

Many phones also gather dust in drawers. That makes the market vast, and it will likely keep growing. New technologies such as 5G encourage upgrades. At the same time, more customers understand the value of their devices. As a result, stock availability should increase.

Knowing Your Product:

As with any business, you need to understand the product you buy and sell. You do not need to be an expert. However, a solid working knowledge of mobile phones helps a lot. It helps you judge what makes a profitable purchase and what does not.

Purchasing Devices:

When you start a mobile recycling business, plan how you will source phones for resale. Some businesses (such as CEX) use high street stores, so customers can drop devices off in person. Others run e-commerce stores and ask customers to post devices in.

You can also source devices B2B by buying from wholesalers of refurbished phones. Each option has pros and cons. Choose the approach that fits how you want to run your business.

Protecting Your Recycling Business:

Most customers act legitimately. However, some people will try to use your business to fence stolen or lost devices. Mobile networks and other organisations maintain a database of devices reported as lost or stolen. People often call these devices “blacklisted”. Anyone learning how to start a mobile phone recycling business will likely face this issue.

Our MobiCheck service connects directly to the live database. The system updates every 15 minutes. That gives you more confidence when you check a device before you buy it. As a retailer, you should carry out due diligence. This helps you avoid buying or selling stolen goods, and it helps protect your business.

Buying With Confidence:

When recycling mobile phones, you want to avoid faulty devices. A faulty phone can leave you unable to resell it.

MobiONE is an ‘all-in-one’ PC-based application. It provides fast and consistent testing. It also supports bespoke workflow block rules. In addition, it includes device checking, testing, wiping, and grading. With MobiOne, you can reduce the risk of buying devices you cannot sell again.

Refurbishing Mobile Phones:

You may also choose to buy faulty devices. You can sell them for parts. Alternatively, you can repair them when the damage is not significant. Many large cities have repair professionals. Some work alone, while others run professional repair centres.

You may even bring repairs in-house and hire your own engineers. This approach can widen the range of devices you can buy, refurbish, and resell.

Where to Sell:

When planning how to start a mobile phone recycling business, decide where you will sell devices. You can sell from a physical store. You can also sell via an e-commerce platform such as eBay or Amazon. Another option is selling directly to businesses.

Potential buyers include insurance companies that need Grade A devices for claims. Airtime sellers may also buy stock. You can also sell to other retailers that specialise in second-hand phones. Smaller chains often struggle to source a good variety of models, so they can be a good place to start.

Written by Nick Rose