Source: The Wall Street Journal
When the iPad 2 came out, within a couple of weeks about 10,000 people sent in their old versions to Gazelle.com, receiving about half the cost of the new iPad from the recycling company.
“We expected to get a couple of thousand,” said Israel Ganot, president and chief executive of Second Rotation, which operates the Gazelle.com website.
His company just raised $22 million in a new Series D financing round to help keep up with growing demand. It will use the capital to launch new television and radio ad campaigns, hire a chief marketing officer, build out technology to process items, and improve its website. It will also spend money on opening trade-in stations with retailers. It has partnered with Wal-Mart and Costco for online electronics recycling and has completed in-store pilots with Office Depot and Wal-Mart, but it doesn’t have any active in-store programs with retailers now.
Gazelle.com pulled in $21 million in revenue last year, growing 155%, said Ganot. “We continue to see good growth,” he added.
After buying used electronics from individuals, Gazelle.com resells the items on eBay and Amazon, mostly in the U.S. “Increasingly we’re selling into the international markets — demand is growing from China, India, Latin America, Africa,” Ganot said. That’s partly a function of the floundering economies in certain parts of the world, where consumers are willing to buy used items.