gazelle.com is my new favorite website but I have no idea how they stay in business. The idea is you send them your old computers, cell phone, electronics, etc (shipping is paid by them), and they recycle them for scrap and/or resell them, and then send you a check for the recycle value. There is no fee to you (not even shipping costs).
I’ve done it twice – the first time was for a four year old laptop, and then sent me a check for $48. The second time was for my year old IPhone 3G – they gave me $202 for it. Which is pretty amazing considering I paid only $199 for it a year ago. HOW DO THEY DO IT???
Now granted, when I bought the iphone for $199, there was also a hidden cost built into the monthly cell phone fees, so the true cost was higher than I paid. I get that. But even so, how in the world can gazelle.com make a profit buying my used Iphones for that much?
I’m sure the electronics in that four year old laptop are worth something as recycled scrap, but are there really so many recycle buyers that Gazelle.com can make a profit by paying me $48 for the laptop (plus their shipping costs), inspecting it, taking it apart for scrap, and then selling off the used pieces?
Are there really people out there willing to pay Gazelle.com more than $202 for my old Iphone 3G (especially considering you can get a brand new from apple for only $99, and a refurbished one for $49 if you’re willing to sign up for a contract)?
I keep thinking they must be ripping me off somehow, but so far, all that’s happened is they sent me checks, exactly as they promised. So how are they making a profit at this?