Thursday, March 05, 2009
Amazon Gets Into the Buy Back Business.
Sometimes great ideas just take resources to make them happen and when you are Amazon, you have a ton of resources.
Today we find out, thanks to ZDnet, that Amazon is now in the Buy Back business, though they call it Trade-In. Consumers can trade-in their used video games to Amazon in exchange for a credit on Amazon for future purchases. Could DVDs, CDs, Books Consumer Electronics be far behind.
It isn't clear what Amazon does with the used Video Games once they have them, but rumors have circulated that they are working on a program, where they will begin selling used "Certified Used " video games and compete directly with their 3P merchants in the used space.
My guess is they would not sell them directly under the Amazon name but more than likely through the Warehouse Deals business, which currently handles returned merchandise, etc.
Tin Hat Warning!
I don't want to be an alarmist here but this opens the door for Amazon to compete against their 3P merchants and my guess is that won't go over well.
I know this idea works because I bought back used media this way. When Amazon gets into this business it gets a little scarrier for 3P Merchants in the media category.
Just my 15%