"That's the hub where these devices get collected, " adds Mr. Ganot, before being sent to other markets.

WSJ: How to Fight iPhone Theft

In a January 21 interview with Gazelle CEO, Israel Ganot, I learned that Gazelle springs from his long experience with ecommerce leaders.

FORBES: Boston Start-up Gives Cash For High End Electronics

About 12% of people with old electronics devices actually try to recycle them and Ganot thinks that number will rise to 20 percent by 2015.

FORBES: Boston Start-up Gives Cash For High End Electronics

But Ganot is not just relying on good word of mouth.

FORBES: Boston Start-up Gives Cash For High End Electronics

Mr. Ganot says that Gazelle does what it can to determine if phones are stolen, using websites like www.checkesnfree.com for Verizon devices, but there is often little the company can do.

WSJ: How to Fight iPhone Theft

And Ganot believes that people trust the company to both pay them what it promises for their old electronics and to clean all the personal information off the devices before reselling them.

FORBES: Boston Start-up Gives Cash For High End Electronics