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NextWorth
Company typePrivate
Founded2005[1]
Headquarters
Billerica, Massachusetts
,
United States
Key people
David Chen, CEO
ServicesUsed electronics trade-ins
Revenue$20.4 million (2011)[1]
Websitehttp://www.nextworth.com/

NextWorth is an electronics trade-in and recycling service. Users of the service exchange used electronics for cash or discounts on newer models. The idea for NextWorth originated from business students at Babson College in 2005. It started as a commission-based service to help businesses setup online auctions for their used items. In 2006, it changed its business model to focus on electronics trade-ins.

According to About.com, whether a seller will be happy with the service depends on how fair they are about describing the product's condition. CNET said the prices are "pretty fair". Sellers can get better prices by auctioning their products online directly, but NextWorth is more convenient.

History

NextWorth was founded based on a startup idea selected by Babson College's 2005 Business Hatcheries program, which provides free resources to support student-led startups.[2] NextWorth Solutions Inc. began operations the following year. It was originally a service that helped businesses and non-profits prepare luxury items for online auctions in exchange for a 20-33 percent commission.[3] In the Spring of 2006, NextWorth changed its business model and services to focus on electronics trade-ins.[4] At first, it only did iPods and iPhones.[5][6] In January 2007, NextWorth raised $1.5 million in series A funding.[4]

NextWorth setup partnerships with about fifteen retailers, whereby used electronics could be traded for gift cards or reduced prices on newer products at retail locations.[5] It established a partnership with CompuSmart in 2007.[7][8] It's largest retail partner at-the-time, Circuit City, went out of business in 2009.[5][9] Target began adding NextWorth's electronics trade-in services into its retail locations in 2011.[10][11]

NextWorth has experienced spikes in activity from sellers trading in prior models when newer ones are introduced, such as when the iPad 2 was announced in March 2011,[12][13][14] and when the iPhone 5 was announced in September 2012.[15][16][17] These product announcements also caused the trade-in price of older models to drop, as supply increased.[17][18]

Services

NextWorth is an electronics trade-in and recycling service. The company purchases used electronics, such as smartphones, digital cameras, iPads and laptops, and resells or recycles them.[19][20] Users of the online service fill out a form describing the condition, memory, model and color of the used electronics they want to sell. The website provides a quote[21][22] and pre-paid shipping labels. The seller is given thirty days to ship the product to NextWorth.[23] The company wipes the device's memory and inspects the item before sending the seller a check about ten days later.[20][24] NextWorth also provides trade-in services through retail partners like Target.[25][20][26] About 80-85 percent of trade-ins are re-sold as a refurbished item, while the remainder are sent to a network of partners for recycling.[9] Many iPhones are resold in other countries, where new iPhones are more expensive.[27]

Pricing of the trade-ins is based on an algorithm developed at Babson College.[28] The company earns revenue by reselling the refurbished item for more. For example, in 2012 a used iPhone 4S would have been bought by NextWorth for $260 from a user that paid $199 for it with a two-year contract from AT&T. It would then be resold out-of-contract for $469, which is still $180 less than the price of a new iPhone without a contract.[29]

Reception

NextWorth and Gazelle are the best-known electronics trade-in services.[23][30] Sellers can obtain better prices by reselling their electronics directly through services like eBay or Craigslist,[16][31] however NextWorth offers more predictable pricing and convenience. The Huffington Post recommended using NextWorth, because the seller has 30 days to purchase a new device before shipping the old one.[31][32] According to CNET, most of the trade-in prices at NextWorth are "pretty fair" though they were surprised some items didn't go for as much as they expected.[33] The price sellers can obtain and how the prices compare between trade-in services vary depending on timing, model and condition.[34]

According to About.com, how fair the seller is in describing the condition of the product "will determine whether your experience with NextWorth is satisfying or not." Many sellers are surprised when they are offered a higher price than they were originally quoted after NextWorth inspects the product, or disappointed when the condition is found not to match the seller's description.[24] A reviewer at iPod Observer said NextWorth reduced the price for his iPhone by $64 for scratches, even though he said there were no scratches on the device.[35] His quote was corrected the following day without explanation.[36]

If NextWorth appraises a product at a lower condition than the seller expected, they can get an explanation from NextWorth, challenge the quote, or reject it and get the product back.[24] Sellers can also visit a participating Target to get the product appraised in-person and receive immediate payment.[37]

References

  1. ^ a b "Company Profile: NextWorth Solutions". Inc. Magazine. Retrieved August 13, 2013.
  2. ^ "Student tech companies selected by Babson hatcheting for fall term". Mass High Tech. October 24, 2005. Retrieved August 13, 2013.
  3. ^ Viscarolasaga, Efrain (January 16, 2006). "Babson spinout aims to ease online auctioning setup". Mass High Tech. Retrieved August 13, 2013.
  4. ^ a b Viscarolasaga, Efrain (April 13, 2007). "New funding, biz plan puts NextWroth in next phase". Mass High Tech. Retrieved August 13, 2013.
  5. ^ a b c "Timelines of Circuit City Stores Inc". The Associated Press. March 8, 2009. Retrieved August 13, 2013.
  6. ^ Joe Hutsko (1 June 2009). Green Gadgets For Dummies. John Wiley & Sons. pp. 251–. ISBN 978-0-470-52891-4. Retrieved 13 August 2013.
  7. ^ Rocha, Roberto (January 6, 2007). "Retailer launches used iPod trade-in program". Ottawa Citizen. pp. D4.
  8. ^ "Trade-ins offered for used iPods: Service at Compusmart stores. Specialist appraises condition and sets device's value, for credit or a purchase". The Gazette. January 6, 2007. pp. C4. {{cite news}}: |access-date= requires |url= (help)
  9. ^ a b Viscarolasaga, Efrain (February 5, 2009). "Second Rotation, NextWorth Solutions offer cash for 'e-waste'". Mass High Tech. Retrieved August 13, 2013.
  10. ^ "NextWorth offers iPad trade-ins at Target stores". The Boston Globe. March 22, 2011. Retrieved August 13, 2013. {{cite news}}: Cite has empty unknown parameter: |1= (help)
  11. ^ Vomhof, John (August 25, 2010). "Target launches full-service mobile centers". Minneapolis St. Paul Business Journal.
  12. ^ Warren, Christina (March 4, 2011). "iPad trade-in economy explodes". USA Today. Mashable. Retrieved August 13, 2013.
  13. ^ Yu, Roger (February 28, 2012). "iPad 2 prices fall with next model looming". USA Today. Retrieved August 13, 2013. {{cite news}}: Cite has empty unknown parameter: |1= (help)
  14. ^ Peckham, Matt (February 29, 2012). "The Next iPad's Nearly Here: Are You Dumping Your iPad 2?". TIME. Retrieved August 13, 2013.
  15. ^ Etherington, Darrell (October 24, 2012). "Gadget-swapping site sees 1,000% spike in iPad trade-in volume post-apple event". TechCrunch.
  16. ^ a b Yu, Roger (September 11, 2012). "More iPhone owners looking to sell before possible iPhone 5". USA Today. Retrieved August 13, 2013.
  17. ^ a b Choney, Suzanne (September 12, 2012). "Where to trade in your old iPhone and sooner is better". NBC News. Retrieved August 13, 2013.
  18. ^ Fitchard, Kevin. "When is the best time to sell your old iPhone? Probably right now". Giga Om.
  19. ^ Gill, Ronnie (March 18, 2013). "Web Sightings: Trade in old electronics". Long Island Newsday. Retrieved August 14, 2013.
  20. ^ a b c Cha, Bonnie (August 8, 2013). "Turn old gadgets into cash: a guide to selling electronics online". AllThingsD. Retrieved August 13, 2013.
  21. ^ Worley, Becky (October 16, 2012). "Where to get the most money for your used gadgets". Yahoo! News. Retrieved August 13, 2013.
  22. ^ Pacheco, Walter (September 27, 2012). "iPhone owners trade in old models for big money". Orlando Sentinel. Retrieved August 14, 2013.
  23. ^ a b Dominguez, Robert (September 11, 2012). "Get the most for your iPhone 4s - before the new one drops". New York Daily News. Retrieved August 13, 2013.
  24. ^ a b c Costello, Sam. "NextWorth Review - A used iPod Buyer/Reseller". About.com. Retrieved August 13, 2013.
  25. ^ Gyrta, Thomas (September 28, 2012). "Second-Hand iPhones a Boon for Resellers". Retrieved August 13, 2013.
  26. ^ Magee, Joan (November 25, 2009). "Gadget Trade-Ins Gather Pace --- Retailers Hope Programs for Used Devices Attract Holiday Shoppers". pp. B.7B. As a result, more companies are getting in on these programs. Target Corp., Amazon.com and J&R Music & Computer World all work with NextWorth.com. {{cite news}}: |access-date= requires |url= (help)
  27. ^ Reardon, Marrguerite. "Is it time to ditch the iPhone for the Samsung Galaxy S4?". CNET. Retrieved August 14, 2013. {{cite news}}: Text "Is it time to ditch the iPhone for the Samsung Galaxy S4?" ignored (help)
  28. ^ Kharif, Olga (2008-09-02). "What's Hot: Used Apple iPhones: After the iPhone 3G launch, consumers want the original, hackable iPhone, and vendors are springing up to sell them—for a premium". Consumer Electronics. BusinessWeek. Retrieved 2009-03-17.
  29. ^ Gilbert, Jason (September 21, 2012). "Sell your iPhone and Prepare it for Trade-in: A user's guide". The Huffington Post. Retrieved August 13, 2013.
  30. ^ Fottrell, Quentin (October 24, 2012). "iPad resales surge over 700%". MarketWatch. Retrieved August 13, 2013.
  31. ^ a b Gilbert, Jason (September 10, 2012). "Want to sell your old iPhone? You better do it before Wednesday". The Huffington Post. Retrieved August 13, 2013.
  32. ^ Yu, Roger (September 11, 2012). "More iPhone owners looking to sell before possible iPhone 5". USA Today. Retrieved August 13, 2013.
  33. ^ German, Kent (February 28, 2011). "NextWorth values your cell phone". CNET. Retrieved August 13, 2013.
  34. ^ Horn, Leslie (September 11, 2012). "Where to sell your iPhone 4s for the most money". Gizmodo. Retrieved August 13, 2013.
  35. ^ Martellaro, John (June 30, 2009). "Buyer Beware of iPhone Buying Service: NextWorth". The iPod Observer. Retrieved August 13, 2013.
  36. ^ "Review update: NextWorth Buying Service Reconsiders, Pays up". The iPod Observer. July 13, 2009. Retrieved August 13, 2013.|first=John|last=Martellaro}}
  37. ^ Manthis, Joel (November 1, 2012). "With iPad mini launch, what to do with your 'old' iPad?". MacWorld. Retrieved August 15, 2013.
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