Electronics rank very high on the list of top products to sell online, topped only by books on websites like Amazon and eBay. But this is mostly true for brand new electronic devices, smartphones and laptops. What if you were to buy refurbished electronics like laptops in bulk to resell them on Amazon or eBay, is there any money to be made there?
The answer is yes. But, there are things one should do to avoid the pitfalls of such a venture. Here is what you should look for, where to buy and how to sell you refurbished laptops.
There are certainly risks when buying items online without testing them first, even if they are listed as new. The risks are that much bigger when you are looking at refurbished electronics, especially laptops.
If you are buying online you will not be able to test the products, so it is imperative to find a reputable seller that can guarantee the quality of the merchandise. This means you are looking for the best possible quality of the products and the longest warranty you can get.
Refurbished laptops are also cheaper than new products, but that doesn’t mean they are of much lower quality, nor that you should always go for the cheapest option. Some might be cheap because they can only be used for parts.
But if you are looking to make some money reselling refurbished laptops, there is a way to keep your costs down: buying wholesale merchandise from wholesale suppliers or from online liquidation auctions. The second option, if used correctly, can help you find the best quality for the lowest price.
Buying refurbished laptops in bulk will enable you to get a lower price per unit. However, buying from any wholesale supplier could mean you will be getting low-quality merchandise. To avoid issues and get your hands on high-end refurbished laptops, you should first find a reputable wholesale supplier or an online liquidation marketplace.
In terms of wholesale suppliers, working with a reputable one means you will be getting better quality and you will always know what is contained in the wholesale pallet. Building a relationship with your wholesaler could do you a world of good also, as wholesalers like a returning customer and usually reward loyalty. This can be manifested through flexible payment terms, reduced prices or better shipping options.
However, what if you want to go a step a step better? Liquidation marketplaces, through their websites, will offer you that step forward and can put you ahead of the competition in many ways if you do things correctly. First, reputable liquidators will have exclusive contracts with top manufacturers such as Apple, HP or Microsoft, meaning the prices are lower than wholesale as wholesale suppliers are removed from the supply chain.
The fact that the wholesaler buys overstock, customer returns or refurbished merchandise from retailers and manufacturers and then resell it to end users or other retailers means there are additional costs included as the wholesaler earns a living by breaking up truckloads of merchandise into wholesale pallets and selling them on with a markup.
This is eliminated if you work with a top liquidator as they don’t own the merchandise but just act as a bridge between retailers and manufacturers and you, helping them get their merchandise sold as quickly as possible. To conclude, this grants you lower prices than you’d get from a wholesale supplier, even with favorable terms.
Second, these contracts require the refurbished laptops to pass a certain level of quality, which is set very high, in order to be listed in an auction. And you always know what laptops are offered in the wholesale lot you are bidding on.
These laptops are usually refurbished by the liquidators or manufacturers before being offered for sale, meaning they get a new warranty, even up to three months from the liquidator. This shows you and your potential customers that they can have faith in the product and that it will serve a buyer for an adequate period. There is nothing the manufacturers or liquidators hate more than a product returning a number of times. This not only damages their reputation, but also costs them time and money.
When you get your wholesale lot of laptops delivered, the next step is to market them properly. Although electronics are a type of product that in essence markets itself, you have to take certain steps to get the product on the market correctly and have it sold quickly. You can use one of the global platforms like Amazon or eBay as these might be the cheapest options to set up and run your resale business.
Rule number one, if you are looking to stay honest with your customers and reel them in with frank and quality services, take as many photos as you can of each product you have bought and list them separately.
Since you have purchased the wholesale lot from a liquidation marketplace, you will have a larger margin for profit, allowing you to stay competitive in the market. The electronics market is probably the most competitive one so you have to be aware of the prices your peers are offering as well as the quality of their services.
Don’t try to achieve one big sale that will recover your investment. Rather stick to smaller profit margins and count your earnings once you have sold all the laptops that were contained in the wholesale lot you purchased.
With the products purchased through a liquidator, you will have enough room to play, to set your prices lower than the competition and attract first customers with a lower price. But don’t go too low as many will think you are selling scrap without even looking into the description.
Once you get your customers interested with the price, you should look to keep them returning by providing quality service. Make detailed descriptions, point to possible flaws, ship items out as quickly as possible, build a good reputation. All this will build your customer base and result in larger profits.
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Bid on bulk quantities of returned, overstock and refurbished inventory directly from Walmart
stores and Walmart.com.