The recycling platform Rebuy is achieving record sales with used iPhones and other products, bucking the trend – because new devices are being sold less frequently.
The German second-hand platform Rebuy, which has become known primarily for selling used smartphones, achieved record sales in 2023. According to figures available to Capital.de in advance, the Berlin company generated 210 million euros, which means an increase of around five percent compared to 2022. The number of remanufactured devices also increased significantly by almost ten percent to 300,000. According to its own information, Rebuy has been profitable for the fifth year in a row and is currently foregoing new rounds of financing.
With the increasing sales, Rebuy is defying the general trend in the consumer electronics market, which was declining last year. In mid-February, the industry association reported falling numbers of newly sold smartphones for 2023. The background is likely to be the high inflation in recent months and a generally worse mood among consumers in view of the economic stagnation. According to the industry association, overall sales in online retail fell by almost twelve percent in 2023.
Inflation increases interest
From the perspective of Rebuy managing director Philipp Gattner, his company, founded in 2004, is benefiting from rising prices in the overall market. “The demand for used products has increased significantly,” said Gattner to Capital.de. “One reason is probably that people have less purchasing power and therefore price sensitivity has increased.”
According to the company, the number of devices arriving on the platform has also increased significantly over the past year. Those willing to sell can offer their old products to Rebuy. The company then evaluates them, offers a price, refurbishes the devices and sells them to other interested parties. In addition to the consumer electronics business, which accounts for around three quarters of sales, the company also sells old books and other media media.
Robots check the devices
The evaluation of smartphones and other devices is increasingly automated at Rebuy. In our own logistics center in Falkensee near Berlin, the products are checked technically and visually by robots, and an algorithm then determines whether the device is accepted – and at what price. According to Gattner, automation has meant that a larger proportion of the devices offered to the company can actually be recycled. “We remove any subjectivity from the evaluation and thereby achieve an extremely high purchase rate,” says Gattner. According to Rebuy, the purchase rate for Apple smartphones, which can bring sellers several hundred euros in the newer model series, is almost 95 percent.
In the future, Gattner can also imagine additional product categories such as kitchen appliances on the platform. However, the Rebuy boss sees his focus on expanding the traditional business even further. “We still have a lot of potential in our core market,” he says. “The market for used consumer electronics will continue to grow very strongly.”
Source: Stern
