Toronto startup SELLIT9 is taking the phrase “one man’s trash is another man’s treasure” into its business model by turning used electronics into a monetary credit for online purchases.

Users can post the appraised value of their phone, laptop or gaming console on the website and request it be applied toward a payment. Once the item's value is verified, a member of a network of vendors will take the electronic device and buy it off SELLIT9, with the proceeds then applied toward the purchase.

The company was co-founded in 2024 by Josh Guttman and Oswaldo Alvarez. Both were motivated to create SELLIT9 to reduce the heaps of waste generated by their lifestyles, which not only contributes to a pollution problem but is effectively throwing away money.

“How do I keep these items out of a landfill? How do we easily get them back into the re-commerce world?” CEO Guttman said in an interview with Sustainable Biz Canada.

Having raised US$1 million in a pre-seed round led by Drive Capital and Northside Ventures, the next step is going to market by connecting to major e-commerce platforms.

Simplifying household object disposal

A former vice-president of sales at Salesforce, Guttman has held executive roles in educational software company Top Hat, proptech startup Lane and real estate investing management software firm Altrio. With a passion for building “something very mission-driven” that addresses issues he has personally felt, Guttman reflected on the stuff that was accumulating in his home.

Strollers, high chairs and laptops used for virtual learning by his children were on the chopping block. He called a junk removal service to take away a truckload of excess belongings, which he considered deeply wasteful. Thousands of dollars worth of goods were being tossed away.

Chief technology officer Alvarez held top software engineering roles at Scotiabank and founded startup The Wall9. As someone who moved five times in 10 years for his career, he repeatedly faced the hassle of selling his belongings.

“I was expecting just to do everything in just one transaction. Is there another way that I can get some credit for all the unused items that I have to buy some new stuff?”

The two met at a Y Combinator matching program, and based on their shared passion of reducing household waste, they devised a solution called SELLIT9 Pay.

SELLIT9 Pay

Designed as an alternative payment option, a user can put up an electronic device as part of an e-commerce payment. The device’s make, model and condition will be taken into account, and the item appraised. The assessed value is relayed to the user, who will be asked if they want to put it toward the purchase. If so, a hold will be put on the credit card with SELLIT9 as the merchant of record.

To verify the quality, a member of the company’s network of buyers and resellers will pick up or receive the object at a physical location. Once the device’s value is validated, the hold on the credit card will be released so the transaction can be completed, and one of SELLIT9’s partners will buy it from the company.

SELLIT9 will allow for simplified and quicker reselling than its e-commerce peers, Guttman said. Other markets need a listing, haggling, then meeting the seller. By contrast, SELLIT9 can provide “instant value”, and greater flexibility than stores with trade-in policies, he said.

The company has processed over 800 items to date.

The core concept of SELLIT9 is promoting circularity. Electronic waste is an increasing issue in Canada, more than tripling from 2000 to 2020, according to research from the University of Waterloo. Part of the solution could entail consuming fewer new products by repurposing what is available.

Reusing and refurbishing consumes fewer resources and energy than producing a new item. For example, refurbishing a smartphone can cut the carbon emissions compared to buying a new one by approximately 70 per cent, according to one study.

Growing SELLIT9

SELLIT9 currently has 22 buyers in the Greater Toronto Area, London, Winnipeg and Montreal, primarily electronics repair shops or people who have a home side business. The fundraise will allow the company to expand its list of buyers and resellers.

It is also in talks to extend its service to major companies that buy refurbished electronics, Guttman said.

Another major goal is to bring SELLIT9 Pay to market in the coming months. The company has e-commerce partners it is planning to integrate with, having recently been approved on Shopify’s marketplace.

Hiring and technology development will be additional priorities following the fundraise, as is widening beyond household electronics.

“Anything that can be purchased, refurbished and resold, and through technology can give an accurate and instant pricing,” Guttman said. This could include branded coffee makers or instruments.