'Re-commerce' leverages gift cards

A developing trend for 2012 is called "re-commerce". It involves retailers that pay customers to turn in old electronic items. With a stagnant economy and consumers intent on stretching the dollar as far as possible, businesses like Amazon.com Inc. have launched programs that offer prepaid gift cards to consumers who trade in used gadgets such as old tablet computers and outdated cell phones.

Amazon's Electronics Trade-In Store was announced in May 2011. On Amazon, consumers search Amazon's list of items the online retailer accepts for trade in. If products are eligible, customers follow prompts and print out shipping labels to mail items free of charge to Amazon.

After Amazon receives and inspects products, Amazon.com Gift Cards that reflect the trade-in value of items are deposited electronically into customers' accounts. The virtual gift cards can then be used for purchases on the website. Amazon gift cards are issued by ACI Gift Cards Inc., a company headquartered in Washington state.

Another re-commerce provider is Second Rotation Inc.'s Gazelle.com. For trade-in electronics, the website gives customers the option of receiving cash, gift cards or donating trade-in values to charity. Gazelle's media kit said customers receive an average of $100 for trade-in items, which often end up as refurbished electronics resold on the websites of eBay Inc. and Amazon.

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