Amazon launches used item buyback service

It’s the same type of setup you see at many textbook buyback sites — you get credit for about half of what the item usually sells for used. For example, if you wanted to trade in Heroes, Season One, Amazon credits you $6.75 (This DVD retails for $59.98, and Amazon sells new copies for $45.99. Used copies go for about $12.)

Here’s how Amazon publicizes the buyback program: There’s an expanded buy box with a trade-in here button (see the picture below). When you “trade in” an item, Amazon gives you a prepaid shipping label, and when they receive it via the Postal Service, your account is credited in the form of an Amazon gift card. So you don’t get any cash, just credit toward buying stuff at Amazon.

Amazon has also started a video game buyback program.

Wow. Assuming Amazon likes the results of this program, it’s only a matter of time before they expand into used books. One more problem for third-party sellers to deal with. In addition to the sputtering economy and Amazon’s proliferation of free shipping offers, this could be the most troublesome. Not only will sellers be competing directly with Amazon for sales of used items, but Amazon will be diverting the supply of used items to itself, driving prices down.

Here are more gory details.