Rebuy boss in an interview
What do I get for my old smartphone?
October 13, 2023, 4:58 p.m
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The Berlin company Rebuy is the market leader in the resale of used electronics. In the podcast “Zero Hour” managing director Philipp Gattner explains what sells best – and what happens to old cell phones.
Rebuy buys smartphones in very different conditions. How is it determined whether the devices are still of any use?
Philipp Plattner: Two years ago we opened a location in Berlin-Falkensee where the devices are tested technically and optically, largely automated. The data is deleted, then the product runs along a conveyor belt and is examined by different robots. These are several dozen tests – display, audio, camera. High-resolution photos are then taken and the optical condition is determined based on these photos.
Is anyone else looking at it?
There is quality assurance in which every product is checked again by a human.
And then the price is set. How is it created?
There is an algorithm behind it that defines the price. This depends on the functional and visual condition of the product. But demand on the website, inventory or seasonal questions also play a role. For example, you can get several hundred euros for an iPhone 12.
How many smartphones go through such a process every day?
We sell between 400,000 and 500,000 electronic products every year. Smartphones make up just over 50 percent of this. You can calculate how many products pass through our centers every day. This is already significant.
How profitable is this business?
We have been profitable for four years. The strategy is also based on profitable growth. So between 15 and 20 percent growth per year.
Rebuy only accepts electronic devices up to a certain age. Couldn’t the components of older devices still be recycled in the interests of sustainability?
The majority of the products are in a condition in which they can be resold. We also have our own repair center where we can replace displays and back covers or change batteries. But we have also been working on producing spare parts ourselves for a year or two. In other words, using individual parts of products to repair others. We have recycling partners for everything that lies below in the value chain, i.e. the breakdown into raw materials.
How should the company continue to grow?
Although the circular economy is deservedly receiving a lot of attention today, we are still in a very early phase with the market. When we think about growth, the first thing we need to do is further expand our position in the German market. By making more people aware that this option even exists. The business model is very popular, but knowledge about it is not yet that widespread.
How well are electronic devices actually recycled in Germany?
It is estimated that 200 million cell phones are lying unused in drawers in Germany. And we have to convince people that it’s worth it and that it’s extremely easy to put these products back into circulation and get money for it. There’s still a lot lying around in the drawers that we could use.
What else, other than consumer electronics and books, could be brought back into circulation in this way?
Of course, this business model can also be imagined for other categories. This could include household appliances and kitchen utensils. The Thermomix is, so to speak, the iPhone of the kitchen and would therefore fit in well. But it’s certainly not over yet.
Listen in the new episode of “Zero Hour“:
- Why Rebuy is getting into the used book business
- How prices change after the introduction of new iPhones
- In which countries used goods work best
You can find all episodes directly here RTL+, Apple or Spotify or via Google.