Amazon to take old CDs for trade-in

Amazon, the online retailer, announced Wednesday that it would allow customers to trade in their old CDs for discounts toward other purchases.

Currently Amazon currently allows customers to send in their old electronics, textbooks, DVDs, and video games in return for a gift card, reports CNet.

Postage is even included in the cost.

It is still unclear as to why Amazon would want to take in electronics that have been resigned to the dustbin of technology history along with cassette tapes and laser discs.

Smart Money suggests that Amazon may be looking for the trade-ins to spur other purchases on the site with customers likely to spend about 40 percent more than a gift card discount.

It might also be possible that Amazon is establishing itself as the main vendor of used CDs – the last major retailer in a shrinking market space.

As Time points out, "if you’re the only buyer in town and your customers are willing to spend an extra 40% on other products, you’ve got yourself a nice little business model."