Recently, Amazon.com announced a new program which allows consumers to trade-in used electronics in exchange for an Amazon Gift Card. The process looks rather simple and Amazon even pays for the incoming shipping.
Gift Cards Are Becoming A Popular Way To Compensate Customers
I've seen a trend in the secondary markets for everything from used electronics to pre-owned gift cards. Consumers are often given the opportunity to take a gift card as payment for their used goods in lieu of cash.
Sometimes, the consumer is given both a cash and gift card payment option. Naturally, the gift card option is always higher dollar amount than the cash equivalent. It's a trade off which may very well worth making for consumers and indicates there may be less gifting in gift cards than we traditionally think.
More On Amazon's New Service
The big catch here is the used electronics must meet Amazon's "product eligibility criteria". So before you go grab every price of old electronics in your apartment, check to see the products which are listed as acceptable for trade-in.
For example, when I logged in, the going price of a First Generation iPad (64GB, WIFI only) in "good" condition, was a $311.25 Amazon Gift Card. Keep in mind, there prices will change over time.
Looking to trade you Wii in because the Wii 2 is just around the corner? Your old video game system could net you a $45 Amazon Gift Card. That's not bad considering there shipping is included and there are no need to negotiate with stranger. Furthermore, I just checked Best Buy's rate and it was a $32 Best Buy Gift Card.
Competition Is Good For Consumers
Several major retails already offer such trade-in programs and most partner with third parties to manage the programs. Best Buy, Target, Walmart and now Amazon are all going after the used electronics market in a big way.
Any time a major player enters a market, it's likely going to be good from consumers. My initial reaction is Amazon.com is in a good place to manage this program in-house, leverage it's current sales channels and offer consumers more company credit for their used goods.