The personal data privacy question retailers need to answer before customers trade-in

For many customers, the decision to trade-in an old device is closely tied to trust.

Smartphones, laptops, tablets and other connected devices can hold years of personal information, from photos and messages to payment details, passwords and work files. Before customers hand those products over, they need confidence that their data will be protected, transferred where needed and securely removed.

In our Standing out in a crowded market with retail trade-in report, 24% of consumers said worries about data privacy or data wiping are a barrier to trade-in participation. For retailers, data security is therefore a critical part of increasing uptake.

These concerns also influence what customers do with old devices after replacement. 26% of consumers say they keep devices as a backup or to access files, showing how closely data concerns are connected to device retention.

For smartphones specifically, keeping a device as a backup is the most common outcome after replacement, ahead of handing it down, trading it in or selling it privately.

Figure 1: What consumers did with their previous smartphone

This behaviour becomes more pronounced with age. 15% of 18-24 year olds and 25-34 year olds keep devices as a backup, rising to 18% among 35-44 year olds, 21% among 45-54 year olds, and 26% among 55-65 year olds.

Figure 2: Percentage of each age group keeping devices as a backup

That pattern points to a clear need for guidance around data transfer, backup and erasure, particularly among older customers who may be more likely to hold onto devices because they are unsure what will happen to their information.

Data wiping should be visible in the trade-in journey, clearly explained and backed up with proof. Customers need to know what happens to their data, when it happens, who handles it and how they can be confident it has been erased.

The report shows that customers respond strongly to this kind of clarity. 30% say certified data wiping or factory reset support would encourage trade-in, while 29% want assisted data transfer to a new device.

For bricks-and-mortar retailers, in-store support can make the process feel more certain. Staff can explain the steps, support data transfer, help customers prepare their device and provide visible reassurance that personal information will be handled securely.

For e-commerce retailers, trust needs to work without face-to-face interaction. Clear FAQs, step-by-step instructions, certified data erasure processes, confirmation emails and transparent partner credentials can reduce uncertainty before a customer sends in their device.

The key is to make customers feel in control. When people know their files can be transferred, their personal information can be securely removed and their device will be handled by a trusted process, trade-in becomes easier to act on.

For retailers, addressing privacy concerns can unlock devices that might otherwise sit unused in drawers because customers are unsure what to do with the data inside them. By making data protection visible, simple and credible, they can increase participation, strengthen trust and make trade-in feel safer for more customers.

Access our Standing out in a crowded market with retail trade-in report to explore how retailers can build greater confidence in trade-in through trust, transparency and secure data handling.