Gazelle – Intermediary link

2. Gazelle – Intermediary link Seller Gazelle  Marketplace  Buyer

3. Gazelle, a Top RatedSeller

4. Howdoes it work?

5. Why has Gazelle’s business model proven to be so successful? A brief flashback into history… - In 2007 the Economic Crises started weakening the financial sectors of some of the biggest economies across the globe. E.g. The United States. - In 2008 the Economic Crises burst quickly, spreading and affecting smaller countries’ financial sectors which were interconnected with the “super” economies. - The Economic Crisis resulted in bankruptcy, budget cuts and mass unemployment across the globe. - In the long run, this affected the typical/regular consumer and left them with very little head-room in their personal economy.

6. What did Gazelle do? - In the wake of the Economic Crises consumers became aware of how they spend their money in order to “stay afloat”.- Gazelle saw an opportunity in this omnipresent conversion of consumer’s economy patterns and aimed to embrace it. - Gazelle therefore embraced that consumers had very little head-room by offering to buy their old used unused electronic goods to a price suiting the current market value and price that made it affordable and “effort able” convenient for consumers to pursue.- A “Green Movement” saw the light of daywhich made consumersenvironmental conscious. - This “trend” of strengthened awareness towards recycling = added more positive fuel to Gazelles already thriving business.

7. Sum up!- Combing consumers’ “Soft values” and “Hard values” Gazelle pursueda segment that was in the necessity of taking action but also willing to do so. - Also the lack of jobs made it easier for Gazelle to maintain a strong workforce e.g. student jobs for students at MIT.- Electronics evolving constantly, but not everyone can afford the newest product,So re-selling used/ older products to people who aren’t able or willing to pay for the new products had a marketplace for this.

8. Whatare the characteristics of Gazelle’srevenue model? • Retailpartners • eBay • Kiosks • Selling broken products • Selling products in bulk

9. Online retail partners

10. Other retail partners • Small chain of discount consumerelectronics • 3-week pilot project with Office Depot’sphysical stores.

11. eBay • Lowerfees • Premium listings

12. Other characteristics • Kiosks • Selling broken products • Selling products in bulk for companies

13. Does Gazelle need a different intermediation model?

14. New intermediation model?Buy-side – Buying/obtaining products (Sears/Kmart, Costco, Wallmart and Office depot – offer their customers a trade-in service for their old electronics devices when they purchase new devices)New intermediate model - Cutting out partnerships?Obtaining products solely themselves?Pro:Expenses: “paying” partners. Risk of partners becoming more dominant.Con: Partnerships essentially extended Gazelle’s initial model of buying products through Gazelle.com. – Mo’ gadgets, Mo’ money –

15. Sell-side – selling productsCut out ebay (disintermediation) and sell on Gazelle.com and Gazelle-stores instead?Pro:Less expenses to E-bay fees – transaction fees down/contribution margin upTraffic stays on Gazelle.com (selling customers is also potential buyers of products)Easier to control own brandCon:“Working with retail partners (online and in-store) provided instant access to the huge customer bases of those retailers – Gazelle would be hard pressed to achieve the same level of customer reach through its own direct marketing efforts” - Israel Ganot, CEO Second Rotation (Gazelle.com)Expenses: whole new marketing, store/employees Expenses: attracting old and new customers – is competing for customers with E-bay realistic?E-bay, as a marketplace, becomes a competitor (Other sellers on E-bay has potential more buyers with gazelle out of the pictures) Realistic to do both – sell on E-bay and Gazelle.com?

16. “Ganot had to find the right balance between investing in further developing the retail partnerships and investing in Gazelle’s own consumer-facing efforts”