Chatting with the CEO of Rebuy: A Well-Positioned Player in the Blossoming Secondhand Market
The Bug in the Box: Rebuy Thrives Amongst Growing Used Electronics Market Competition
"Secondhand trading is gaining increased popularity"
Berlin-based secondhand electronics retailer Rebuy, buying, refurbishing, and selling devices like smartphones and tablets, has seen double-digit growth rates over the past years, albeit at a slower pace recently. However, CEO Philipp Gattner remains confident that Rebuy is prepared to face fierce competition.
By Karolin Rothbart, Frankfurt
Under the Christmas trees this year, millions of secondhand presents are likelier than not, eagerly awaiting their new owners - as revealed by a study by the German Retail Federation. The percentage of those already giving away used items in Germany has increased from 51% to 54% this year. Popular secondhand gifts include household and decor items, accessories, electronics, and clothing, all chosen for their eco-friendly and cost-effective virtues. Market researchers expect double-digit growth rates worldwide in the coming years for used and refurbished electronics and clothing in response to increased consumer awareness and elevated living expenses.
As the used goods market escalates, numerous online platforms cater to the trend, facilitating direct trading between private individuals or acting as intermediaries. Some platforms, such as French Back Market - a marketplace for refurbished electronics - and Vinted, a marketplace for pre-owned fashion and accessories, have secured billion-dollar valuations in their latest funding rounds. Traditional e-commerce titans like Amazon, eBay, Zalando, Zara, and electronics retailers like Saturn, have also entered the secondhand scene.
Despite the surge in competition, Philipp Gattner, CEO of Rebuy, a Berlin-based provider of used and refurbished electronics, as well as secondhand media like books, films, or video games, remains unperturbed. "Yes, there are regular new entrants in the market, including traditional companies like MediaMarkt," he says. "That's not surprising and doesn't automatically lead to competitive displacement. It's simply because the market is becoming more attractive."
Rebuy, a forerunner among secondhand electronics providers, was founded 20 years ago under the name trade-a-game, initially focusing on used video games. The company was later renamed Rebuy Recommerce GmbH in 2009 and expanded its product range. Swiss financial investor Evoco provided a 21 million euro investment during the last funding round in March 2018, becoming the majority owner of Rebuy. In 2019, Rebuy reported its first profit.
Gattner aims to pen down black numbers once more for this year, both for operating results and the bottom line. Compared to the previous year, the company is expected to see "a good development," with sales exceeding 220 million euros, up from 216 million euros last year. "However, we are also a bit spoiled by the past years, where we have always grown double-digits on average," he admits.
Last year, Rebuy achieved only single-digit growth, while Back Market, which began in 2014, realized a sales increase of 45% during the same period, reaching 320 million euros. Refurbed, a Vienna-based provider of refurbished electronic devices, reported external turnover of over 1 billion euros in June 2023. Five months later, the startup, founded in 2017, raised 54 million euros in a funding round.
Despite the stiff competition, Gattner continues to view Rebuy as a competitive contender in the market. Rebuy offers customers multiple services to safeguard product quality, including inspection, cleaning, data deletion, refurbishment, and a three-year warranty. "We actually handle the products ourselves, and in 2023, we processed nearly 10 million products, which presents a significant barrier to entry for potential competitors," says the CEO. Building the logistics and know-how behind the business model takes years to create.
Looking ahead, Rebuy plans to concentrate on its core business in Germany over the next 12 to 24 months, where the company generates the majority of its sales. In addition to Germany, Rebuy operates in Austria, the Netherlands, Spain, Italy, and France. "Given the billion-dollar re-commerce market and our current sales level, we still see a lot of potential in our existing business, and it makes little sense to rush into new categories or countries," says Gattner.
In the long term, international expansion is in Rebuy's sights. A region of interest for re-commerce is Scandinavia, where the acceptance of purchasing second-hand items is high. The trend among younger generations in Germany is similar.
In the medium term, Rebuy intends to expand into new product categories. "We are considering household appliances, for example, like the Thermomix, which can seamlessly fit within our range," says Gattner. "It offers a high price point, boasts fewer product types, and stresses quality."
When asked about potential consolidation movements in the market, Gattner highlights the importance of having options. The company could envision actively acquiring other businesses and is currently exploring potential, smaller targets. "However, if there are large strategic players with whom there could be synergies with Rebuy, then that would also be an option for us."
Enrichment Data:
Overall:
Here's an analysis of the current trends and competitive dynamics in the used electronics retail market, focusing on broad insights (specific performance data for Rebuy, Back Market, and Refurbed is unavailable in the available sources, but industry-wide trends apply):
Market Trends (2025 Projections)
- Growth drivers: The consumer electronics repair/maintenance market is predicted to expand (worth $8.05B in 2025) with a 2.7% CAGR, driven by growing environmental concerns, high replacement costs, and IoT adoption[5]. This directly bolsters used electronics retailers by increasing demand for refurbishment.
- Sustainability focus: Rising e-waste regulations and consumers' heightened environmental awareness push retailers to focus on circular-economy models (refurbishing, recycling)[5].
- Tech integration: IoT adoption is enhancing device diagnostics for refurbishers, while AR tools are streamlining repair processes[5].
Competitive Strategies
Although specific figures for Rebuy, Back Market, and Refurbed aren't detailed here, the industry-wide approaches include:- Quality standardization: Implementing certifications/guarantees to quell consumer doubts about used electronics.- Tech partnerships: Forging alliances with component suppliers and financial institutions to simplify operations and offer financing options[5].- Vertical integration: Many players are now handling repairs in-house to control costs and quality, moving away from relying on third parties.
Key Challenges
- Supply volatility: Semiconductor shortages (projected to create a $697B global semiconductor market in 2025)[1] may restrict newer device inventory, leading to increased reliance on older models.
- Energy costs: High electricity prices (as touched upon in consumer electronics Trend #2)[4] could escalate refurbishment operational costs, yet this also boosts demand for energy-efficient used devices.
- As millions of secondhand presents are likely to be found under Christmas trees this year, the German Retail Federation's study indicates a rise in the percentage of individuals giving away used items in Germany from 51% to 54%.
- Demand for eco-friendly and cost-effective items, such as household and decor items, accessories, electronics, and clothing, is driving the growth of the used goods market worldwide, according to market researchers.
- Online platforms, including direct trading between private individuals and intermediaries, are proliferating in the used goods market, aided by increasing consumer awareness and elevated living expenses.
- Platforms like Back Market, Vinted, and Amazon, eBay, Zalando, Zara, and electronics retailers such as MediaMarkt, have entered the secondhand market in response to market growth and changing consumer preferences.
- In 2018, Rebuy, a Berlin-based provider of used and refurbished electronics, secured a 21 million euro investment from Swiss financial investor Evoco and has since reported its first profit in 2019.
- Philipp Gattner, the CEO of Rebuy, foresees continued growth for the company, aiming for double-digit growth rates and a sales figure exceeding 220 million euros for this year.
- Despite the stiff competition in the used electronics market, Rebuy differentiates itself by offering services like inspection, cleaning, data deletion, refurbishment, and a three-year warranty to ensure product quality.
- In 2023, Rebuy processed nearly 10 million products, which Gattner notes presents a significant barrier to entry for potential competitors.
- For the near future, Rebuy intends to focus on its core business in Germany, while also considering expanding into new product categories such as household appliances like the Thermomix and exploring potential acquisitions of other businesses for strategic expansion.
