Assisting E-Commerce Companies Enter The Booming Market Of Second-Hand Cell Phones

Inflation is on the rise. Many Americans are feeling the toll of living in the US. Some people have found ways of deterring costs to alleviate some of the pressure, but these changes aren't sustainable. Whether skipping a meal or skipping buying necessities at the grocery store, people must watch how they spend money. This is even more serious when dealing with the necessary use of technology.

The world is intertwined with the internet, whether working or buying goods. Around 20% of retail purchases, so far in 2024, were made online. While many purchases are made of new goods, with rising prices some of these purchases will be out of reach. Luckily, there is a booming second-hand market. The current market share is in the hundreds of billions of dollars and is expected to grow. Many apps like OfferUp and even Facebook marketplace have become options for young people to buy discounted goods for everyday life. However, the quality can be difficult to check through photos online, and the risks of scams are more prevalent. People want reliable sellers.

Websites like Backmarket, in Europe, have made it easy and efficient for people to access graded and refurbished smartphones throughout the world. While this platform has made it easier for people to buy these phones, the sellers on their platforms struggle to access the capital to fund significant supply. However, there are opportunities for these smaller companies to enter the market.

Enter Forever 8 OCTO which offers e-commerce sellers the opportunity to sell used cell phones on the market without having to access commercial bank financing, which is typically out of their reach. The company offers capital to verified sellers with limited risk. Forever 8 purchases the inventory in bulk, on behalf of the sellers, from their existing suppliers. The bulk purchases allow them to get better pricing, which helps fund Forever 8's small mark-up which is charged only when the product is sold. This also allows sellers to turn inventory faster and more efficiently. Some sellers have difficulty acquiring their products, and making sure to buy them without going into debt is even harder. Forever 8 acts as their new Supplier to acquire the necessary SKUs. This is a vital service for many sellers trying to enter the second-hand smartphone market.

Both Apple and mobile service providers, like Verizon, auction off their massive inventory of returned phones. However, these auctions only sell bulk batches with large minimums in the tens of millions of dollars. Smaller e-commerce shops don’t have that cash on hand, and many can’t ask a bank for a loan to buy these goods. With Forever 8, sellers can bypass these requirements. So far, this partnership has been quite lucrative.

“Forever 8 has recorded over $76 million in revenue during 2023, from $32 million in 2022,” Co-Founder Paul Vassilakos said. “With smartphone sales accounting for the large majority of that revenue.”

Whether it’s on Amazon, Shopify, or any other third-party site, Forever 8 helps to bring the necessary elements to vetted and successful sellers. Not only does the company provide the inventory capital, it also works with the seller offering advice, management, and troubleshooting for any problems that might occur online. This partnership comes with the backing of many companies already within the second-hand, smartphone economy.

For a depreciating asset, this is a booming market. Especially with the difficult times many face, greater access to used goods is more imperative. Allowing smaller e-commerce sellers to offer these items at competitive rates is a win for many. Forever 8 offers the opportunity for there to be widespread competition between the big and small companies. By creating these partnerships, e-commerce platforms have a new niche waiting to be tapped.

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This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice.