Walmart launches new plan, will the second-hand refurbished market change?

eBay and Amazon have already laid out the second-hand refurbished market, and Walmart has recently also set its sights on this big cake!

Walmart launches Walmart Restored refurbished product program

On July 29, Walmart launched a refurbished product program called Walmart Restored. Walmart General Manager Michael Mosser claimed that the program is designed to help customers discover refurbished products at everyday low prices. And promised that these refurbished products are like "new." Because Walmart is sure that they are purchased from top sellers and suppliers. All products listed on the website are professionally inspected, tested and cleaned. If customers are not satisfied for any reason, Walmart provides 90 days of free returns to help customers shop with confidence.

Rival Amazon.com has offered refurbished items for years, changing its name to Amazon Renewed in 2017 and severely limiting the products that can be sold through the program in 2019. eBay also has its own certified refurbished program, and in 2020 began to severely restrict sellers who can sell through the program . It is not known what kind of competition the second-hand refurbished market will usher in with Walmart joining the competition for refurbished goods, but it must be profitable.

GDP continues to decline, and American consumers are also starting to save money

According to the U.S. Department of Commerce on July 28 (local time), the U.S. real gross domestic product (GDP) in the second quarter fell by 0.9% month-on-month, showing negative growth for two consecutive quarters. In addition, the U.S. PCE price index increased by 6.8% year-on-year in June. U.S. personal income and expenditure show that U.S. real personal income increased by 0.6% month-on-month in June, and personal consumption expenditure increased by 1.1% month-on-month. After adjusting for inflation, real personal income in June increased by only 0.1% month-on-month, but expenditure increased by 1.6% year-on-year. Against this background, many Americans have to seek various ways to save money .

“ As customers look for ways to save money , refurbished products have become an increasingly popular way to reduce costs without sacrificing quality, ” said Mosser .

Due to supply chain issues, inflation and concerns about an economic recession, refurbished goods are a golden opportunity for the online market . The entry of Walmart will inevitably bring a stir to the second-hand refurbished market and bring more opportunities.

In addition, on July 25, 2022 , Walmart announced that its consolidated net sales growth for the second quarter and full year is expected to be approximately 7.5% and 4.5%, respectively. Its operating income is expected to fall by 13-14% in the second quarter , while it is expected to fall by 11-13% for the full year.

Concerns about future revenue have also forced Walmart to take action. The launch of the Walmart Restored refurbished product plan may be the beginning of its change. It will become a disruptive "catfish," activate more markets, and build trust with customers as a "new player."

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