Why Buy Refurbished Electronics Wholesale?
The electronics market is nowadays one of the most attractive, as our lives revolve around the gadgets that we carry in our pockets or our backpacks. Even those devices we keep at home are such an integral part of our everyday lives that it is hard to imagine life without phones, laptops or TVs. No wonder then that there is such a demand for these products online. This makes the electronics market very attractive if you are running a resale business. If that’s your case, you should definitely be on the lookout for wholesale electronics to buy at prices that give you a better chance of being competitive in the market.
One option you can look into is buying liquidated merchandise. But maybe you don’t want to gamble with untested customer returns or non-working items sold for parts. While a portion of liquidated merchandise is exactly this, there is a type of merchandise that you should consider buying: refurbished merchandise.
But what are refurbished electronics, what is the refurbishment process, where do you find such products and do you buy them?
- Refurbished items are guaranteed working, barring some cosmetic damage. With Direct Liquidation, they also come with a full 90-day warranty.
- Refurbished electronics are attractive stock due to their fully-working condition.
- The refurbishment process includes testing, repairing (where necessary) and repackaging.
- Finding the right supplier is crucial, since the quality of refurbishment often depends on the quality of the source.
- Refurbished electronics are largely sold by liquidation companies to resellers, who then market and sell them on for profit.
- The purchasing process is quick and easy, with Direct Liquidation, and can be done completely online.
What Are Refurbished Electronics?
In layman’s terms, we can say that refurbished electronics are units that have been reviewed and repaired, where necessary. The reason for reviewing and repairing is to extract the maximum value from the products.
But how do these products come about? Take a large UHD TV, for example. One of the units has been displayed in the store as a demonstration. Such units are pulled from the store and can often be found among refurbished units. It is also not unusual for buyers to return units to retailers for all sorts of reasons. Many of these reasons are nothing to do with damage sustained. Statistics show that some 30 percent of products purchased online get returned to the retailer. This also includes other types of products like clothing or books, but with the huge throughput retailers have the figures are significant for electronics also.
When it comes to products that have been returned to retailers, these are often just packed up and liquidated, without any testing being done. When this happens, the products are sold to liquidation companies that can handle large volumes of merchandise. This enables the retailer to focus on new merchandise and free up space in their warehouses without having to deal with every single customer returned item.
Liquidation companies that acquire these large volumes of customer returns either from retailers or through other channels then sell on this stock to resellers, like you. Here at Direct Liquidation, we take up the task of reviewing and refurbishing electronics, when we see the benefit of doing so, completely in-house. We’ve refurbished tens of thousands of items, and our teams are very experienced in doing this.
What is the Refurbishment Process?
Once a liquidation company acquires electronics items, many of them will enter the refurbishment process. The first step in extracting the maximum value is to review the units. Once each unit is checked in and cataloged, it goes through the testing process to verify the product’s functionality and note any flaws and potential faults. If the products pass the testing phase, they are cleaned, graded, accessorized, and repackaged for sale.
If a fault is found in a product, it is sent further down the line for repairs. Once the repairs are done and the item is again tested, it goes through the same process of cleaning, grading, accessorizing, and packaging before it is ready for sale.
You may also come across open-box TV sets. These are also returned units that have not been tested as thoroughly as the fully refurbished ones. These units are 95 percent in their original boxes, they are powered on and checked for simple power-on functionality. Each unit sold through this program will have no dead pixels or cracked screens and come fully accessorized. However, you may wish to test them yourself for any faulty connections, ports or software issues before resale. These items do come at a lower price point compared to fully refurbished units.
Finding the Right Supplier is a Must
Now that you know what sort of process the refurbished units go through, you must make sure you are working with a reputable company. While anyone can slap on a refurbished label on a product, the quality of the refurbishment may be questionable. Direct Liquidation will not only provide quality repairs, but will also use quality replacement parts in the process where needed, do a proper job repairing the units and will fully accessorize them as well. On top of that, you get a 90-day guarantee. What more can you ask for?
The same goes for the purchasing experience. We urge you to work with reputable companies. You don’t want to find that the money you paid for a refurbished UHD TV has gone to a scammer and you are not getting it back, nor are you getting the TV.
To ensure this, research is key. Use the power of the internet to find as much information about the seller as you possibly can. See how long they have been in the business. Suppliers like us have years of experience and are Better Business Bureau accredited.
Also, look for detailed information on each listing. Direct Liquidation will provide you with manifests for all refurbished lots, these are packing lists that show what is contained within each lot, the tape, the quantity as well as the grade (quality) of each product. So whether you are reselling it or keeping it for yourself, you have additional assurance in the quality of these products.
How to Buy Refurbished Electronics?
Buying refurbished electronics from Direct Liquidation is a simple process. However, there are ways of reducing purchase costs. But let’s start from the top.
Liquidation companies sell items wholesale, which means you are buying in bulk, in itself a way of keeping the price per single unit lower. Liquidated merchandise is sold at prices way below typical new-item wholesale. This is a huge selling point in itself and is often the reason why many resellers opt to stock up their businesses through liquidation companies.
You have the option to bid against other buyers and buy lots through the auction process, or you can use the ‘buy now’ option and purchase the items directly, on lots where this is available.
An additional note for those looking to save cash. If your sole intent is to resell the bought items, check with your local tax office for a resale certificate or tax exemption certificate that will further push the purchase price down as you don’t have to pay tax on these units.
Once you complete the purchase, your next step is to arrange the delivery. You have the option of arranging your own delivery option, but top-tier companies will often have deals in place with other companies and can give you quotes for delivery you can hardly match yourself. One cash-saving tip is to choose distribution centers close to you in order to cut down delivery costs. It is also often possible to pick up the stock yourself, if you have access to the right equipment to transport either a pallet of merchandise or a full truckload, depending on the volumes you purchase.
So, when you are buying electronics to sell for profit, refurbished items are an appealing option due to the quality ensured by the refurbishment process. This make it possible for everyone to enjoy high-quality products for a fraction of their original cost.
Jordan currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Jordan is here to help you grow your business.
View Jordan’s Bio on YouTube.
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