Bastian Lehmann, the man behind Postmates, has launched a new service called Tiptop. This service aims to make it easy for people to trade in their old items for instant discounts on new purchases. Tiptop started as an app that scanned users’ inboxes for receipts of online purchases to estimate trade-in prices. Now, Tiptop has evolved into a payment option within ecommerce checkout experiences.
When making a purchase, users can select the option to checkout with Tiptop. They can then choose the device they want to trade in and see how much the trade-in will discount the price of their purchase. Tiptop accepts a wide range of products, such as old phones, laptops, and baby strollers. Once the transaction is complete, users will receive a prepaid shipping label to send their unwanted device back to Tiptop. The company will then resell the item and keep any profit made.
Tiptop has cataloged around 50,000 specific products for trade-ins and is integrated with Shopify, allowing merchants to offer Tiptop as a payment option. While Tiptop’s trade-in model may encourage people to upgrade more often, Bastian Lehmann believes it provides a solution to help people pay less for new items in tough economic times.
However, critics like Lucas Gutterman from US PIRG are concerned that services like Tiptop and buy now, pay later programs may encourage unnecessary consumption. Gutterman believes that the real solution is to reduce the frequency of buying new items. Tiptop’s trade-in model may offer convenience and guaranteed sales, but users may receive less money than if they were to sell their items themselves.
While Tiptop’s approach to reverse logistics is innovative, the company may face challenges in a market where margins are thin. Despite the potential risks, Lehmann is optimistic about Tiptop’s future and aims to prove its value to users.
In conclusion, Tiptop’s trade-in service offers a unique way for people to get rid of their unwanted items and receive instant discounts on new purchases. However, the service’s impact on consumer behavior and the sustainability of rapid upgrades remain topics of debate in the industry. Only time will tell if Tiptop can successfully carve out a space in the competitive world of ecommerce and reverse logistics.
