How Amazon's Supply Chain Keeps 740m Products in Use

Across Europe, Amazon is rethinking how supply chains work by embracing circularity—keeping products in use for longer and reducing waste.

In 2024 alone, Amazon’s circular business model helped customers in Germany, France, the UK, Italy and Spain save nearly US$44.4bn, all while keeping 740 million products in circulation.

That’s not just a sustainability win. It’s a strategic rethink of how goods are sold, used and resold, cutting down on the resources needed to manufacture new items.

In a world where more than 50 million tonnes of electronic and electric goods are discarded each year, valued at more than US$62bn and including precious materials like rare earth minerals, gold and copper, this approach is reshaping how Amazon’s supply chains function.

Second-hand demand changes the retail equation

Amazon’s commissioned research, conducted by the Centre for Economics and Business Research (CEBR), delves into what it calls the “Second Chance Market.” This includes three product types: used items, ‘open-box’ items - which have been opened but not used - and refurbished products, which are checked, cleaned and repaired before being sold again.

These products are increasingly popular with customers looking for value and sustainability.

“Customers are actively seeking second-hand items across a broad range of categories—from tech and fashion to home appliances. On Amazon, second-hand product sales exceeded €2bn across Europe and the UK in 2024,” says Mariangela Marseglia, Vice President of EU Stores at Amazon.

She adds: “Reselling returned items isn’t just good for the planet and for business—it’s what our customers want.”

The size of this market now extends well beyond niche consumer behaviour. According to the report, 85% of under 34s in these five European countries shop second-hand online and in places like France and Spain, those numbers climb to 91% and 89% respectively.

That enthusiasm drops among over 55s, where the figure is just 52%, highlighting how younger generations are helping push circularity into the mainstream.

Crucially, one in four purchases in the Second Chance category represent sales that wouldn’t have occurred without the second-hand option. That’s a supply chain shift in itself—sales created from stock already in circulation, not fresh from the factory floor.

Circularity transforms supply chain logistics

The new way of shopping impacts Amazon’s entire supply chain. Products that are returned, previously discarded or deemed unsellable are now re-evaluated, repaired and reintroduced to the market.

Amazon Resale handles returned items, offering them at discounted prices, while Amazon Renewed lists refurbished items from trusted sellers. Both are supported by Amazon’s delivery network and returns process, with guarantees in place to protect buyers.

The operations behind this are extensive. Sam Littlejohn, Amazon's Head of Returns and Repairs in Europe, says: “We’re seeing incredible momentum, with financial pressures and the environmental benefits of keeping products in circulation, key motivations for shopping second-hand.

“At Amazon, we’re proud to support this shift with dedicated teams across Europe checking and refurbishing items for resale, making it easier than ever for customers to find quality, affordable, pre-loved products they can trust.”

It’s a supply chain evolution that cuts waste and optimises the entire product lifecycle, from first purchase to second sale.

Amazon says its own packaging also reflects these efforts. It has eliminated more than 27 million plastic bags from its device packaging since 2020 and is investing further into sustainable packaging materials and logistics improvements.

Growth comes with friction

Still, challenges persist. Although consumer interest in second-hand products is growing fast, awareness outpaces actual buying behaviour. Amazon’s report flags concerns over product condition and a perception that second-hand goods lack proper warranty protection as key hurdles.

To overcome these, Amazon is leaning on trust. Through the Amazon Renewed Guarantee and a network of verified refurbishers, the company is aiming to make used goods feel just as dependable as new ones.

Despite these barriers, Europe’s Second Chance economy is still forecast to grow. Amazon estimates it could hit more than €23.8bn (US$28bn), showing that second-hand retail is moving from fringe to core.

The company’s data shows that shoppers are no longer driven purely by novelty. Around 34% of European consumers now disagree with the idea that new is better than used. That shift changes not just how people buy but how retailers plan, warehouse and distribute goods.

Supply chains that once focused on getting brand-new stock to shelves as quickly as possible are now being recalibrated to include returns processing, refurbishment and redistribution. It’s more complex—but, according to Amazon, increasingly essential.

As the Second Chance economy expands, so does its influence on how the retail giant builds and manages its logistics network across the continent.