About 80% of products are in great condition and Gazelle sells them itself on eBay and Amazon. “There’s a tremendous demand for inventory that has more life in it,” Ganot says. More than 200,000 items have been traded in, and Ganot reports “gross margins in the 20s,” similar, he says, to Amazon.
Say That Coolpix camera was pretty dinged up and got only a $2 offer. Very old or poor-quality products are refurbished and sold in bulk into emerging markets to extend their usefulness. About 10% of the products Gazelle handles fall into this category.
The Dregs — items that received no offer but got thrown into the box — are properly recycled. “We don’t want to make a penny in recycling,” Ganot says, calling it a brand decision.