There is a niche similar to a cash 4 old cell phones business model but it's something else.
I am trying to see if this model which is definitely working in the US would also work in the UK. The market the model is based around is large (though seemingly much smaller than the US), well known and well established in the UK. There are small signs that this model is already working in the UK such as ebay and a small number of sites.
What I can't figure out is:-
1) Why isn't this model already well established like the US?
2) Why the market is so much smaller than the US than one would expect?
Here is some of the things I have found out which help to paint the picture.
Signs of the market in the US
- One successful company had forbes article recently as world's blankiest blank and large funding.
- At least +20 sites doing the same thing.
- Activity on ebay/reddit other popular forums/listings sites.
- One company showing +100,000 inventory of available product.
- The product the niche market is based around has high US annual value. (+$100 Billion) [i am not sure about the accuracy of this figure it's what is being reported but it doesn't say what is actually being measured, but it is definately going to be larger than the UK]
- Key Word Search Volume:- Main Market 59,000/mth US searches - Niche Market 24,000/mth US searches
- Comments online showing that there is a problem which needs/is being solved.
- 3 Companies with same business model but showing few signs of much traffic.
- 1of the 3 companies is a UK version of a US based site which had the +100000inventory but UK inventory is reported as just 200units
- Similar activity on ebay (could be some difference in the way ebay.com shows numbers than ebay.co.uk)
- Some forum/listings sites activity
- The product the niche market is based around has growing UK annual value. ($7.5 Billion) [accurate figure based on total $ value sales, possibly not the same measurement reported in US]
- The 2nd site/app of 3 is backed by a foreign entrepreneur with some other big name apps behind him.
- This 2nd site also only has inventory showing of 200units
- Key Word Search Volume:- Main Market 18,000/mth UK searches - Niche Market 500/mth UK searches
- Forum activity which clearly talks of a problem and the problem of trading this product on ebay which this site would solve.
But to contrast that there are low signs of an existing customer base/market and there is almost non existent search volumes.
The reason why I am looking into this is I can't understand why it wouldn't be a market in the UK.
What are your thoughts?
What other indicators can I look for?
Could I just try to set-up a dummy page and see if I can validate the concept?