KEH CEO Noah Treshnell reveals the strategic choices that enabled KEH to build a profitable online resale business in the camera industry, a sector often challenged by narrow margins. This episode dissects how product depreciation curves and niche market focus are critical for success, offering a blueprint for other ecommerce operators looking to succeed in high-value resale.
Key takeaways
Online resale profitability hinges on product categories with shallow depreciation curves; high-value items like cameras are ideal, unlike many apparel items.
Long-standing businesses can leverage their history and customer trust to accelerate growth in burgeoning markets, as KEH has done with the circular economy's tailwinds.
Successful online resale requires a deep understanding of market dynamics, customer acquisition, and retention strategies tailored to the used goods sector.
Focusing on niche markets and dominating them with quality pre-owned products can create a strong, defensible value proposition and competitive advantage.
Transitioning from a traditional business to a leading online platform requires continuous innovation and adaptation to e-commerce trends.
Resale has proven difficult for many players in the apparel space, but KEH has made it work for the camera industry.
KEH has been around for 40 years, beginning first as a used camera business. It's grown into the leading platform for pre-owned camera gear. Today, the company continues to see year-over-year growth and is profitable. CEO Noah Treshnell joined the Modern Retail Podcast and spoke about KEH's history, as well as his vision for the future.
One of the real lessons Treshnell has learned is that online resale may not work for every type of product. It's usually grouped in with apparel, which is a difficult business margin-wise. But for more expensive products like cameras, the model has proven to work especially well.
Brands have to ask, he said, "Is it a category that dramatically drops off in terms of retaining its value? So, is the depreciation curve shallow? That's very important, especially in e-commerce."
Lucky for KEH, its products work for a profitable resale business. With resale being such a buzzy word, the business is only continuing to grow.
"We've got tailwinds behind us and we're going substantially faster than even the market is growing," he said. "And that's really a testament to the team and our customer."
Frequently asked about this episode
What does this episode say about dtc strategy?
Online resale profitability hinges on product categories with shallow depreciation curves; high-value items like cameras are ideal, unlike many apparel items.
What does this episode say about brand & content?
Long-standing businesses can leverage their history and customer trust to accelerate growth in burgeoning markets, as KEH has done with the circular economy's tailwinds.
What does this episode say about supply chain & operations?
Successful online resale requires a deep understanding of market dynamics, customer acquisition, and retention strategies tailored to the used goods sector.
What does this episode say about founder & leadership?
Focusing on niche markets and dominating them with quality pre-owned products can create a strong, defensible value proposition and competitive advantage.
What does this episode say about dtc strategy?
Transitioning from a traditional business to a leading online platform requires continuous innovation and adaptation to e-commerce trends.
