Business Model – Return & Re-Use

This is a business model wherein the startup encourages users to return and sell unused items for an incentive. These items are then refurbished and sold off.

RATIONALE

Users have old and unused stuff which they want to sell off. A company operating with this business model can help these users get value for their items. At the same time, the company can add value to the items and sell them off for a profit, thereby ensuring a win-win for everyone.

STARTUP EXAMPLE

The Amazon Trade-In program buys hundreds of items from customers, across categories such as video games, DVDs, books etc. In exchange, these customers are given an Amazon Gift Card which can be availed on the website. The items must be in acceptable condition and Amazon verifies the product before purchasing any item. Amazon then makes it available for resale.