Turn Used Electronics into Cash | Backflip

The Genesis of Backflip: From Debt to Device Resale

Mike Barile invested two years and approximately $20,000 in credit card debt to launch his initial venture, Backflip.

Prior to founding Backflip, the former management consultant dedicated several years to the startup landscape, gaining experience at companies like Uber and Google.

He also completed a coding bootcamp at AppAcademy, where he connected with his co-founder, Adam Foosaner, before a stint at a cryptocurrency startup.

Identifying a Market Need

Following a challenging experience within the cryptocurrency sector, Barile began exploring new opportunities while simultaneously seeking ways to cover his living expenses.

It was during this period that the concept for Backflip emerged, stemming from observations regarding the often-untrustworthy nature of online electronics marketplaces.

Barile and Foosaner believed a more secure and streamlined process was necessary for buying and selling used electronics.

Backflip's Core Offering

Backflip provides a service where customers receive immediate cash for their used electronics, encompassing items such as Android phones, Xbox consoles, Apple products, and even vintage Game Boys.

“In March 2019, while initially developing Backflip, I encountered an individual named Chris who expressed interest in purchasing some of my older iPhones,” Barile recounted.

“Chris, a former student at USF, had established a successful side business refurbishing and reselling used devices.”

This individual’s success – ultimately leading him to discontinue his studies – highlighted the potential profitability of the market.

Addressing Safety Concerns

However, Barile identified a significant risk associated with the process. “Chris faced safety challenges while acquiring devices and handling cash transactions, traveling throughout the city,” he explained. “Individuals in the refurbishment and resale industry frequently experience incidents of armed robbery.”

Backflip mitigates this risk by acting as a trusted intermediary between buyers and sellers, earning a commission for facilitating secure transactions.

Early Growth and Funding

The company secured its initial funding at the close of 2019, but before this milestone, Foosaner and Barile relied on personal credit and the resale of electronics to sustain themselves.

To date, Backflip has overseen the exchange of approximately 3,000 devices.

The company manages all aspects of the process, including data wiping, quality assurance, and locating buyers, having distributed over $500,000 to its users, according to company data.

“We employed various strategies to attract our first users,” Barile stated. “We utilized advertisements on platforms like Facebook Marketplace and Craigslist.”

“We also began experimenting with a rudimentary mobile application towards the end of the summer, initially managed solely by Adam and myself.”

Expanding Service Through UPS Stores

Backflip is now collaborating with UPS stores to establish convenient in-person drop-off and packaging locations for used electronics.

The long-term vision includes expanding these services to offer cash on delivery, mirroring the convenience of an Amazon return, but with immediate payment to the seller.

Currently, approximately half of the company’s inventory consists of used handsets and mobile devices, a proportion Barile anticipates will decrease as awareness grows regarding the wide range of electronics Backflip accepts.

“Backflip distinguishes itself from other resale options by prioritizing the user’s time and convenience,” Foosaner noted in a statement. “Sellers can avoid the complexities of price negotiation and scheduling meetups. We handle all the work, ensuring fair and rapid payment.”

A Family Connection to Resale

Barile’s exposure to the resale market began early in life, as his mother operated a side business, “Stone Cottage Workshop,” refurbishing and selling furniture on eBay and at local thrift stores in their New Jersey hometown.

“Our goal is to become the leading platform for effortlessly removing unwanted items from your home,” Barile concluded.