I'm confused how this is like Netflix at all, except for them paying for the shipping. You're giving them something instead of them giving it to you, and you're selling it, not renting it.
So...obviously they are reselling them somewhere else that has a similar assurance of re-payment. The question is, who is that? I'm guessing that their buyer gives them a shopping list of items they need and only then do they offer to purchase them through "gazelle".<p>There are a lot of super, super shady "electronics dealers" who sell crap using high pressure techniques, and who keep costs low by <i>not</i> having inventory. I'm guessing that these people are gazelle's buyers.
Hi - Thos from Gazelle here.
Just wanted to chime in with a response to a couple of these.
@sysop073 and @thorax - the Netflix connection is right now is more about how easy we want to make it for folks. We try to take free shipping one step further by sending pre-paid packaging to our customers to send their stuff back to us.
Looking at it longer term, by providing a model where people can sell end of use items to us with no hassle at a fair price, owning a cell phone could start to be more like renting a movie.
@mynameishere - You are right - there are a lot of super shady dealers out there. However we're not selling to them. We've invested a lot in the technology and process behind the scenes to develop optimized channels to move the items through. We're trying to encourage reuse as much as possible - the majority of what we buy isn't junk at all, and in fact has at least one round in the consumer cycle left in it. We sell some of it directly to consumers ourselves ( <a href="http://stores.ebay.com/SecondRotation" rel="nofollow">http://stores.ebay.com/SecondRotation</a> for example) and have carefully selected wholesale and recycling partners that will take whatever we have. We're absolutely committed to behaving in an unimpeachably ethical manner.
Very good execution on the idea of "brokerage of everything" - if you can find a way to determine relative selling prices, then offer a margin below that - then resell its money in the bank.