Electronic recycling/retailing

[Kyl3]

Hi there,

I was just looking for a bit of advice really, i'm considering setting up a new business as i'm fed up of working so hard with no end goals.

What i'm looking to potentially do is set up a online retailer of consumer electronics new and refurbished, as well as offering a recycling service for peoples old electronics.

The recycling service would work similar to something like Mazuma mobile which gives you cash back for your old mobiles, i would hope to work in a similar sort of way with things like TV's, laptops and tablets too.

What are peoples opinions on this sort of business, and how do you think it'll pan out?

Cheers in advanced, Kyle.

[daveb1]

Hi Kyle,

I think the business is fiercely competitive right now but I do here lots of people claiming big profits and nice margins. Have you also checked out a company like Gazelle. There are so many big companies springing up around this concept I think it will be very hard to stay competitive or even compete being this far behind the curve. I never discourage anyone from trying businesses out though so if you think you can make it go for it. My advice would be to maybe try and by a few items /electronics off of craigslist or at a garage sale and then see if you can make a profit by selling them on another marketplace (Amazon, Ebay etc.). It's a great business if you can pull it off. Let us know how it goes! Do you have all the skills/ tools / knowledge to refurbish all of this stuff?

[Kyl3]

Do you have all the skills/ tools / knowledge to refurbish all of this stuff?

I checked out Gazelle, yeah its a similar sort of thing to that i'd be going for, and with regards to your question to a certain extent yes tablets and mobiles id be fine with but anything more than that i'd have to get it outsourced, which is where i'm going to have to see the costings.

At the moment its just an idea, so i'm just researching it all at the moment.

Cheers, Kyle.

[cellphoneguy]

Kyle, the recycling/reselling market is becoming more and more competitive each day. The margins are nice yes, but TNR (triage and repair) costs on handsets that need some repairs can escalate very quickly in which you will see the profit margins shrink or even be eliminated if not careful.

Few things to consider:

1. Past a certain volume, it is inconceivable to expect to sell every used phone/refurbished phone via eBay. You should have a plan long-term for other methods of inventory liquidation such as a group of resellers and/or distributors to help minimize losses or capture profits even if it is at a reduced margin. Holding on to inventory is a dangerous idea because phones maybe more than any other electronic device lose value very quickly.

2. Study the competition. Test them out. Find out how they operate by sending them some used phones. Even if it ends up costing you, you'll gain some very valuable inside and 'tricks' of the business.

3. In my own opinion, because the competition is growing rapidly, try to do something unique and different to separate yourself from the 'others'.

Gazelle.com is probably overall the quickest and most reliable. We've probably tested out 8 different on-line resellers and retail store trade in programs. However Gazelle also falls on the 'low' end as far as prices being offered for used phones/electronics.

Check out our site if you'd like, whatsyourphoneworth.com which is in soft-launch mode right now but ramping up quickly over the next 30-60 days. We are in the phone recycling business but are aiming to become the first major established business within the next year or two that offers same-day cash payments for your used devices. No more waiting 2-4 weeks for your payment!