Online classifieds market in India is undoubtedly a crowded one. Selling second hand goods online is not a novelty either. However, a Bangalore based startup RecommerceHub, is cutting teeth in the Rs 5,000 cr second hand mobile sales market.
Selling a second hand phone online is a daunting task. You’d need to deal with too many calls and frivolous buyers. If you’d rather not go through all the trouble, RecommerceHub will be of use. All you need to do is tell them a few details about your phone online and walk with an instant quote. If you agree on the price, the folks from RecommerceHub will pick up the device at your doorstep and give you your money. No more haggling or rendezvous with buyers.
Started by an NextBigWhat alum, Srikanth Ch along with Rajesh Jampana, RecommerceHub addresses the problem of selling second hand mobile phones with a clear focus on better customer experience.
With door-to-door pickups, the company is trying to tackle one of the major pain points of Indian e-commerce i.e.Logistics. This logistics model is surely an added expense but it is also a unique selling point for the startup.
Metros such as Delhi,Mumbai etc can be the big potential markets but for now the service is available only in Bangalore and will be soon launched in Hyderabad. With the same customer experience and quality standards in mind ,venturing into other consumer electronic categories can be a game changer.
YNew, a startup based in Hyderabad does something similar. The startup floated by Sloyd Ventures Private Limited, is looking to create a franchise network across the country to buy and sell used gadgets and appliances. However, the company takes a physical store approach to second hand goods.
US based sites such as Gazelle that buy and sell second hand electronic goods have had great success. In 2013, Gazelle is looking at $100 mn in revenues.
How Does it Work?
The firm has paid out over Rs 15 lakh to buy second hand phones from over 200 customers since its beginning in September 2012. RecommerceHub refurbishes the phone and sells it through retail channels.
Resale value of the phone is decided based on the brand of the phone, its age and condition. For instance, Blackberry phones have lower resale value but iPhone5,Samsung Galaxy Note 21 and Micromax Canvas 2 are in high demand.