Meet Eze, a YC Backed Startup Disrupting the Booming Market for Used Smartphones
Today, we are excited to announce that we are a part of Y Combinator’s Winter 2020 Batch!
We first got into trading when we realized that we could buy phones locally and sell them for more online. As we ventured deeper into the space we experienced first hand the numerous inefficiencies that existed. We have devoted our full-time efforts to transforming this space for all parties involved directly and down the value chain.
The Booming Market: Where It All Begins
The used smartphone market is exploding with growth — it is currently valued at $46.3 billion and growing at 13% YoY vs. 3% for new smartphones; this is not including tablets, laptops, and other electronics. A new International Data Corporation (IDC) forecast projects that used smartphone shipments will reach 332.9 million units with a market value of $67 billion in 2023. The question is, where are these used smartphones coming from? The answer: you.
Some industry background: When an individual wants to upgrade to a new phone they typically trade in their old one to a carrier store like AT&T or Verizon. That phone typically ends up being used by someone in a developing country 2 to 3 weeks later. So how does it get there? Carrier stores collect all of the phones that are traded in and auction them off to wholesalers. Hundreds of these wholesalers exist, with the core mission of finding the best distribution channels to move their devices through. These wholesalers are the users on our platform.
The Problem
Today, trading in the used electronics market is highly informal; the majority of sales happen in WhatsApp, Telegram, and Facebook groups. Unfortunately, as a result of the informality of the space it is ridden with fraud. The majority of sellers only accept 100% payment upfront exclusively by wire. As a result of the archaic methods of trading and the high prevalence of fraud, the space remains very fragmented even though it has existed for decades.
The Future of Trading Electronics
Meet Eze, the world’s first B2B Exchange for Used Smartphones. We are changing the way people trade across the industry. The platform allows traders to place buy and sell requests that are matched automatically when compatible. All requests are available to everyone on the platform to ensure that market prices are transparent to all. Amongst other features, the platform operates as an escrow system that handles payments to guarantee that no fraud is committed.
We have been operating in this space for a little over 3 years now, starting out as wholesalers ourselves. We saw firsthand the need for a centralized platform that could offer security and price transparency. I worked at Shell as a Reservoir Engineer for 3 years prior to working on Eze full-time. My Co-Founder, David has a strong background in Software Engineering and Database programming. He left his role as a Software Engineer in June of 2018 to work full time on Eze. We have known each other since birth — we were born 10 days apart and our families are very close friends.
Try it Out
Eze is free to use for any business or individual that wants to trade electronics in wholesale quantities. If you are an electronics dealer, wholesaler, distributor, or retail storefront, visit us at EzeWholesale.com.
Trade Eze’r.