Ultimate Guide to being a Profitable Electronics Reseller
Consumer electronics are fast becoming essential products needed for daily living. With the emergence of the Covid-19 pandemic, smartphones have become our link to the world for social and professional reasons. According to Statistica, revenue generated in the consumer electronics market in 2022 amounts to over $1bn and is expected to grow by 1.82% yearly.
Starting a reselling business of any fast-moving consumer good is a good business idea. Reselling consumer electronics will remain a profitable business to start. However, starting your business can be daunting.
In this article, we break down the steps to becoming an electronics reseller and how to position yourself as a power reseller. Let’s begin with why you should consider becoming an electronics reseller.
High demand
Electronics have always been in high demand, and in the past year, there has been a higher surge in this demand. However, consumers are now opting for refurbished phones and used electronics especially used smartphones creating a flourishing market for these devices. In 2020, over 225 million units of used smartphones were shipped globally, showing that the market for refurbished electronics is here to stay.
Vast range
While it is best to hone in on one category, the electronics market offers a vast range of categories. You can opt to resell from such as television sets, smartphones, laptops, home appliances, and many others.
Profitable margins
Electronics offer profitable margins; even more so, you get to set your margins as a reseller. You can price your products to ensure that your resale business is profitable. However, you should note the industry standards for product pricing.
How to become an electronics reseller
If you have decided to become an electronics reseller, there are important steps to take. The steps will help ensure the smooth running of your new business as a small business owner.
Get Licensed
It’s best to take care of the legal aspect of the business. Register your business with the licensing office and obtain the necessary permits.
A necessary document you need for your reselling business is a resale certificate, also known as a sales tax permit. A resale certificate exempts you from paying local sales tax for your goods. Obtaining the required licenses can put your mind to rest and ease your business worries.
Set up a storefront online
The internet continues to be a useful tool in adding visibility to businesses. Shopify, Amazon, Wix, and a host of other eCommerce platforms allow you to showcase your business online and ease your business transactions. Leverage social media platforms like Instagram to advertise and serve as a sales funnel for your business.
Create a marketing strategy
Marketing is said to be the backbone of any business. It is best to invest in a marketing strategy that will help you acquire new customers and retain customer loyalty. You can have a detailed business plan that will also include your marketing plan. Be realistic with your startup costs and forecast period.
Keep in mind the concerns of your target audience and create marketing strategies that solve their problems. Take online courses, especially on social media management, for your business model. To be a profitable small business, distinguish your business by providing stellar customer service.
Get a reliable supplier for your electronic devices
Running out of inventory at the worst time possible can hurt your business. This is why getting a reliable supplier is crucial to the success of your business. Do your due diligence to identify trustworthy distributors and suppliers.
On Eze, there is a large supply of new and secondary consumer electronics to satisfy your supply needs.
What next?
Knowing the basics of becoming an electronics reseller is good, and if you dive into the intricate details, it can make you a power reseller. Here are some tips to get you started.
1. Select a category
It is tempting to resell different electronics; however, it is advisable to hone in on a category of electronics products. This improves your brand identity and also makes you an expert in whatever category you decide on in the long run.
Even if you decide to expand your business to accommodate different electronics, do this slowly. Honing in on one category builds up customer loyalty and presents you as a reliable solution to their particular problems.
2. Make your business full-time
Many resellers regard reselling as part-time. To take your business to the next level, consider switching to full-time. Full-time resellers tend to buy more and, as a result, sell more.
3. Hire employees
Expanding your business means getting the right hands on deck. Employees help you handle areas of your business that require certain expertise. You can also have your employees handle tasks you find mundane and focus on what interests you. More helping hands allow you to buy more inventory and make more profit.
4. Set up a Physical Space
A physical store can serve as your warehouse and showroom where customers can look through your products. Setting up a physical space allows for storing more inventory, resulting in more sales.
Becoming an electronics reseller is one thing but transforming your business to maximize profits is another. To become a profitable electronics reseller, you have to hone in on one category, expand by hiring employees, set up a physical store, and give your business the full-time attention it deserves.
Whether you implement one or all of these tips at a go, you’re sure to notice changes and be on your way to becoming a profitable electronics reseller.
To buy or sell bulk smartphones and other electronics (used and new) in wholesale quantities, check out Eze Wholesale. Tap here to shop now or here to sell easily.
