One understated positive about Usell is the fact that billionaire investor Dr. Phillip Frost has an interest in the company. Recently, the stocks owned by him have multiplied several times. He purchases stocks before these companies are noticed by other players. He surely has seen potential in the prospects of Usell. The awareness about the options for selling used phones is increasing. Launch of new versions of iPhones always leads to a spurt in people offering to sell their used handsets. The iPhones depreciate much less than the other smartphones. While iPhones lose 5% of their value every month, android phones lose 10%. Even Apple has an in-store trade-in program to Reuse and Recycle the used handsets which gives credit for the old handset in case one purchases the new phone. This has further increased the market for used phones. If people get better price elsewhere, and that too in cash instead of credits, they will surely be tempted to try the other options. This will bring in competition, but also increase the size of the market. An article on The Guardian had previously stated that currently 3% of the new smartphone sales are cannibalized by used handsets. This figure is likely to grow to 8% by 2018. Used smartphone market is poised to grow exponentially from 53 million to 257 million units over the next five years. Importantly, phones are not the only devices which can be sold, other electronic devices which are lying forsaken at homes can also be monetized. Even Usell is considering other high value, low weight items which could suit its business. Usell website is considered better by many as the process has less hassles, and there is better price discovery due to the fact that it works with 40 sites that purchase used phones and other devices.
To sell something on ebay you need to set up an account, open a Paypal acct and have a credit card on file. With USEL you need none of that and as they add new items that can be sold on their site their income will grow and as new buyers come in this will get very big, as big as ebay some day.