1. Re-commerce for used cell phones
September, 2013
Used electronics
Re-commerce for used cell phones

2. Overview of re-commerce Trade-in at Walmart
Walmart has been active for two years on used electronics
On-line trade-in at Walmart.com has been in place since 2011
Customers can access Samsung’s Recycling Direct program from Walmart’s corporate web page
Walmart.com sells a meaningful assortment of high quality branded refurbished electronics products
Customers asked for it
1 in 5 consumers already trade-in or recycle their devices
30-40% of mobile shoppers take advantage of trade-in when it is offered
Over 60% of customers will decide where to buy their next cell phone based on trade-in capability
Trade-in can help Walmart enhance EDLP
Industry and competition
Major retailers and mobile carriers already offer in-store trade-in
A secondary market for the resale of used phones already exists 2
Trade-in Wal-Mart Stores, Inc.

3. Customers Why re-commerce is relevant for Walmart
Motivating factor
Implication
Customers’ used devices can lower the effective price of new technology
Enhances ELDP by lowering the effective price a customer pays
Technology is updating at an increasing rate and users want the latest devices
Customers are looking for ways to monetize their device(s)
These types of programs are increasingly common place for younger shoppers who are more connected
Enables Walmart to provide a service that customers increasingly expect to get in-store
Cell phones already command a dominate share of the re-commerce market
Re-commerce is growing at a faster rate in newer categories (i.e. tablets)
Cell phones are an established category to start with in-store trade-in
Customers engage on-line but taking action in store
Leverage .com and mobile to drive traffic to bricks-and-mortar 3
Trade-in Wal-Mart Stores, Inc.

4. ~21% of mobile phone consumers traded in a device in 2012
Industry The re-commerce market is projected to grow by 32% through 2015
Idle devices in the US
343
274
+32%
~21% of mobile phone consumers traded in a device in 2012
198
Millions of devices
144
110 84
2010
2011
2012
2013
2014
2015
Opportunity for Trade-In / Recycling
Already in Trade-In / Recycled
Source: Compass Intelligence 4
Trade-in Wal-Mart Stores, Inc.

5. Competition Walmart’s major competitors offer trade-in options to customers
Format
In-Store
Online
Who grades the devices?
In-store
Online - Consumer
Form of payment to consumers
Walmart e-gift card which can be used on-line or in-store
Gift card or store credit
Timing of payment
In-store - Instant
Online – Instant for customers who use Instant Gratification; otherwise after the device is received by our third party partner
Online – Within a set waiting period usually between 14 and 30 days of mail-in acceptance
Devices eligible for trade-in
In-store - Smart phones (with value)
Online - 15 categories on-line (with/without value)
Varies, most common include:
Items with value
Items by that carrier (i.e. AT&T)
Recycling (limited)
Walmart has invested meaningful capital into training, technology, and infrastructure to support this program in the most responsible way while providing the maximum value to our customers and driving results 5
Trade-in Wal-Mart Stores, Inc.

6. Putting money in our customer’s hands through trade-in In the form of a Walmart “currency”2
Walmart associate verifies device condition + model
Device turns on – Yes/No
Screen is intact – Yes/No 1
Customer initiates transaction in-store at Connection Center kiosk with store associate 5
Walmart associate prepares device(s) for shipment via FedEx
Walmart associate loads an e-gift card and prints receipt (8.5”x11” paper) 3
Devices are picked up and sent to Cexchange via third party carrier
Walmart associate places device(s) into lockbox behind counter 4 6
Trade-in Wal-Mart Stores, Inc.