Tuesday, March 18, 2008

I Told You Buy Back Was Going to be Big!

I just came across an article entitled "Turn Clutter Into Cash" and seeing as “turning media item clutter into cash”, is part of my business plan (http://www.buybackdirect.com/). I figured I would see what the article had to say: "Amid a teetering economy, many people would like to pick up a few extra bucks. Desks and drawers in your house won't provide a steady supply of money, but it's becoming easier to convert household clutter into cash."

This is not really news, as eBay and Craiglist have developed huge businesses enabling casual sellers to sell their items online but as the article points out, "The drawback is that it takes time and effort to take a photo of the item, write out a description and upload the photo to the Web site. Then you will have to spend time with potential buyers answering questions, collecting the money and shipping the item.

While many people have great intentions of doing this, items that end up in drawers never seem to get sold. Other times, even though the items has value, it's too much trouble to put it up for sale."

It makes much more sense for professional sellers to buy the product back from the consumer, putting cash into their hands quickly, and then turn around and sell that product on Amazon, eBay or their own website; because that is what they do for a living. Sourcing, is one of the most difficult tasks for an online seller and finding a steady stream of quality product is a challenge.

I can tell you personally that buying back media items, from the consumer, gives me a steady stream of high quality DVD's CD's and Video Games. I turn around and ship them to Amazon FBA and sell them on Amazon.com. It’s a great business for a blogger.

If the concept works for media items, it can certainly work for numerous other categories and the article points out that several new websites are buying back Jewelry, Cell Phones and other Consumer electronics right now and turning “Clutter into Cash”.

As the economy continues to struggle, many families will look at the "stuff" in their homes and rather than try to turn it into cash by selling it at a garage sale, on CraigsList or eBay, they will just find one of these websites and sell it directly to somebody who does that for a living.

Maybe this was the problem with all of the Drop-off store failures, they didn’t buy the product -- they just sold it on consignment.

Just my 12%


Steven said...

Pretty much every town in America, from the small to the large, has always had some kind of pawn shop or resell shop or used cd shop that will pay out the EXACT same cash rates for cds, dvds, video games as buybak is offering...a 5 minute trip to a local shop beats all the time it takes to try to sell it to buybak, (pack it, ship it, emails/confimation)....

As a business person, I think your buybak concept is good, but will ultimately always be very limited by this fact. As long as you guys look at it as just a little gravy money, it will work for you.

I've been in the brick and mortar used media retail business for 20 years, and I can tell you, most people who part with their stuff, really need the money faster than buybak can ever offer-and that's why they trade it in locally. You would have to offer significantly more cash as a payout for the goods, (but then there wouldn't be enough profits for yourselves to resell it at Amazon-to ever make it worth it). Good luck with it!


Randy Smythe said...

Steven, that's the secret behind what I'm doing. I do pay more that the other guys because I know my margins up-front before I buy and I also know how well it sells.

But don't tell anybody.


Randy Smythe said...

I forgot one additional thing. I get product from all over the country, so I don't need to wait for walk-in business from my local community. With Amazon's UK FBA business I could even start buying product back acroaa the pond.