Circular services: The next growth engine for channel partners

For years, recycling has been the go-to solution for waste across the supply chain, from manufacturing through to end customers. But with escalating ESG pressures, stricter regulation, and shifting consumer expectations, recycling alone is no longer enough.

A recent survey conducted by CLEAR found that 89% of consumers think that electrical manufacturers should be forced to allow third-party businesses to be able to refurbish and repair electronic items, signaling that expectations have moved well beyond simple restrictions. At the same time, the market is becoming increasingly saturated. Traditional revenue streams have never been under such extreme pressure. Channel partners now have a pivotal opportunity to stand out: embedding circular services such as repair, refurbishment, and resale into their core operations.

Circular practices are fast becoming central to competitiveness. By helping brands extend product lifecycles and cut unnecessary waste, channel partners can unlock new revenue streams, reduce costs, and build stronger customer loyalty, while also meeting sustainability targets and gaining a clear edge in a crowded market.

From cost center to growth engine

Traditionally, after-sales processes, such as returns and repairs, were viewed as cost centers. Today, they are fast becoming growth engines. What used to be called “the return problem” in warehouses and repair bays is often just stock waiting for a second chance. Once you start seeing it that way, the whole economics of retail changes. If managed effectively, refurbished goods can be returned to the market with healthy margins, while strong repair programs build customer loyalty and extend trust in the product.

Manufacturers and retailers are increasingly turning to their channel partners to enable these services at scale. By embedding repair and resale into fulfilment, warranty, and marketplace operations, partners can create value at multiple points in the supply chain. This ability to generate incremental revenue is especially valuable in saturated sectors, where competition on new product sales alone is driving margins down.

Commercial and ESG benefits

The commercial case is clear. Our recent CLEAR survey found that nearly two-thirds of consumers have already bought a refurbished or repaired electrical item, with 79% open to buying again. Crucially, 62% told us they would change their purchasing behavior based on the environmental impact of electronics manufacturers.

This shows demand is not only present but growing. A strong warranty model or transparent grading system can provide the reassurance needed to convert first-time buyers into repeat customers, while also helping brands prove they take sustainability seriously. For channel partners, the ability to offer refurbished or repaired stock isn’t just an ESG win - it is a way to broaden product ranges, tap new audiences, and compete more effectively in markets where new product growth is slowing.

Meanwhile, regulators are pushing for greater accountability over the full product lifecycle, and businesses will increasingly be judged on what happens after the initial sale. Channel partners that can demonstrate circular capability will secure stronger long-term contracts and relationships, positioning themselves as indispensable in a crowded marketplace.

A partner-wide opportunity

Circular services are not just for sustainability teams; they represent a partner-wide opportunity. Every link in the chain has a role to play, and the benefits multiply when these efforts connect.

In my experience, there’s often tension between sustainability leads and commercial or marketing directors who still believe refurbishment will cannibalize new sales. It isn’t true. Our experience shows that customers who buy refurbished products are typically new to the brand – they couldn’t afford to buy new, but see refurbishment as a way to access trusted quality at a lower price point. Far from eroding new sales, it actually expands the customer base and builds long-term brand loyalty.

Consider a fashion retailer introducing a resale program. A distributor could coordinate the collection of returned and pre-loved garments from stores across the nation. A refurbishment partner then handles cleaning, quality checks, and re-packaging to prepare items for resale. A systems integrator ensures these products are accurately listed on the retailer’s e-commerce site, complete with clear product grading and sustainability information. Finally, a reseller or marketplace partner could position the refurbished line to attract cost-conscious or environmentally minded consumers who might otherwise shop elsewhere.

The results are powerful: products gain a second life, reducing waste; customers get affordable, quality-assured options; and every partner involved benefits from additional revenue streams and stronger brand loyalty. In saturated markets, where discounting new stock can erode margins, this kind of circular model can provide a genuine competitive advantage.

Building consumer confidence

One of the biggest hurdles for circular adoption is perception. Many customers still see refurbished or second-hand goods as lower quality. Channel partners can address this by embedding trust and transparency at every stage through rigorous quality checks, clear grading, strong warranties, and accessible service histories.

When buyers see these standards in action and the product performs as promised, skepticism fades. In fact, 79% of people who bought a refurbished product would make a repeat purchase – proving that circular services can drive value not just volume. They are then far more likely to buy again, whether it’s an appliance, a sofa, or a garment. For channel partners, this means repeat demand, healthier margins, and a stronger reputation for enabling both affordability and sustainability. In saturated markets, where brand loyalty is hard-won, this ability to inspire trust can be a major competitive advantage.

The way forward

For channel partners, embedding circular services doesn’t require a wholesale shift in strategy. It can provide an additional, profitable revenue stream in an increasingly saturated market. Repair, refurbishment, and resale help brands recover value from stock that might otherwise be written off, while also aligning with the rising expectations of regulators and customers alike.

We help major brands reintroduce tested, refurbished goods across multiple online channels, turning returned inventory into profitable sales while helping them meet ESG targets. We’ve seen firsthand how circular fulfilment models – whether in consumer electronics, appliances, or FMCG – can generate both profit and measurable sustainability outcomes.

Products may once have been treated as disposable, but today the smartest channel partners recognize that every item has a second, third, or even fourth life. Circularity isn’t just a sustainability goal; it’s the next evolution of competitiveness. Channel partners that master it will define the winners of the next decade.