When it comes to buying refurbished electronics, many questions arise, regarding the quality of the item or even how much life a refurbished item has left in it. There are many things to consider, and depending on who refurbished the product you could be getting away with some great deals for basically new items.
With the online sales growing each year it is not unusual for people to order products and return them. In fact, over 30 percent of items ordered online get returned to the seller, because people can’t actually test the products they order online.
In some cases, the problem is only the matter of a misplaced delivery, which is a valid reason for the product to be returned. However, even though it might not have been opened or used, once a product is returned it can’t go back to be sold as a new product. This is good news for you as a buyer, because if you know where to look, you can find brand new electronic items that are labeled as returned, these can also often find themselves mixed into pallets of refurbished items.
Of course, electronics also get returned to the seller because of faults the buyer encounters. They are then refurbished by either the retailer themselves or liquidators who take them off the hands of the retailers. But does this mean that buying refurbished electronics isn’t good for you, whether you buy them individually or in wholesale lots from wholesale suppliers or liquidators?
Not only can you make money but this is one of the best options when it comes to starting your online resale business, and here are a few reasons why buying refurbished electronics could actually be a great idea for you.
When an item gets returned to the retailer or manufacturer for refurbishing, it is of utmost importance that the product never comes back for any further repairs. Seeing a product return for too many times will only cost the manufacturer or retailer time, money and reputation, which is not good for any business.
This is why all the returned products go through extensive repair and testing process to ensure the highest quality standards are achieved and the item is functioning like new. For this reason, refurbished products receive a warranty like new items. You can see why these products really are quality items for a resale business to get ahold of.
An additional bonus is that a refurbished item will be sold by wholesale retailers at reduced prices – lower than the usual wholesale price, enabling you to buy in bulk and then sell the items individually, making profits from the cumulated markup.
And although some product areas need marketing, electronics like tablets, smartphones or laptops are in such general demand, they tend to really market themselves, in a way that you are not going to see with clothing or home goods.
This is a problem everyone starting a resale business encounter. Prices of electronic items on sites like eBay are now already close to wholesale, so how do you save by buying wholesale electronics and reselling them online?
You either find a reputable wholesale supplier who can give you the best price that will leave you the margin for profit or buy through a liquidation auction.
Buying wholesale pallets through liquidation auctions could be your best option because you are able to get items in bulk at prices below wholesale and you don’t have to worry about quality either.
This is because refurbished wholesale electronics sold at top liquidation auctions come with a warranty and if you are buying through a reputable liquidation auction you will be getting top quality merchandise, from top retailers and manufacturers. And if the item is not refurbished by the manufacturer, then the liquidation auction companies will have their specialized teams refurbish the products and Direct Liquidation gives you a 90-day warranty on any of these items you buy.
So not only are refurbished items an interesting venture but are also a good business opportunity if you know where to source them.
Like any business, working with refurbished electronics does have its negative side that can be mitigated if you take proper measures.
The first rule, which was briefly mentioned above, is to work with a reputable wholesale supplier or a liquidator. One of the hints you should always look for is the manifest. Whether you are buying pallets of smartphones or tablets, always look for the manifest which is basically a list of all items included in the pallet. This is even more important if you plan on securing a pallet of mixed refurbished electronics.
If you are working with a reputable liquidator or wholesaler, the manifest will include all the items contained in a pallet as well as a grade of their condition which can range from scrap or untested items to refurbished, working products with the highest grade.
If a manifest is lacking information, incomplete, or missing completely it is your sign to stay away from that pallet and possibly that wholesaler.
Misrepresentation is another issue to be aware of. Some less scrupulous companies list items that might be advertised as Grade A but they actually have defects and damage and can’t actually be resold for profit.
Another possible negative of the refurbished electronics market or the electronics market, in general, is the fact that it attracts so much attention. Even though these products don’t need as much advertising and marketing effort compared to other areas, the market itself is probably the most contested, and putting together the right offer can be tricky.
Your goal should always be to stay competitive in the market, so you can’t go in with high prices, which leads back to securing the products at the right prices in the first place.
So, always make sure that you are getting your budget calculated correctly and buying only the items that will allow you enough room for profit while offering competitive prices, preferably lower than your direct competition. Paying too much for a pallet or listing products with prices much higher than your competition can only lead you to losses and closing of the business. And secondly, but no less important, you need to find a reputable supplier, who guarantees their refurbished items, who is also Better Business Bureau registered.
With these things in place, you can certainly make a profit, and make the most of a very vibrant market.
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