When it comes to products that are always in high demand in online marketplaces, there are always two options; books and electronics always seem to do well. But in terms of marketability and appeal, electronics don’t need much in the way of advertising, these products pretty much sell themselves if you’re offering them at a good price.
But it has to be said that the electronics market is where you’ll find the toughest competition as every buyer wants to grab his or her share.
So, how do you succeed in such an environment, and why should you jump into a market that is already well supplied and doesn’t offer much of a profit since single product prices are very close to wholesale?
Well, there are some tricks to follow in order to give yourself the best chance of success.
Finding a Niche Segment
Going for the top selling products might not be the smartest choice. Researching the market dynamics could uncover some undersupplied niche markets you could exploit. Finding a niche market takes some patience and a bit of hard work. Before starting your market research, make a list of the niche segments you could work with, the ones you like and see yourself enjoying while working.
Once you have your list of segments, look for the products that are in demand but there are not enough suppliers to cover the demand. These will not always be smartphones and laptops, but electronic accessories like headphones or even drones which seem to be gaining in popularity, could also be a very profitable option.
Once you have pinpointed your niche markets it is time to find the products to sell.
Browsing your local wholesale suppliers could be a good option to find the wholesale electronics you could resell. This would also help you keep the delivery costs low. But make sure you always know what you are getting, because at times wholesale pallets will have a whole range of products that are not sorted and you might end up with products you will not be able to sell.
When working with wholesalers and buying wholesale electronics or any other products, make sure you are getting the full content list of a pallet. This is why it is very important to work with the top wholesalers as they will offer sorted products and you can buy only the merchandise you are interested in reselling. Otherwise, if you are not careful you could end up with a mixed pallet of electronic goods that are damaged or not working at all, without realizing it.
A good way of staying away from such a possibility is to look for the list of contents, or the manifest. Top tier wholesale suppliers will have a full manifest of products, product condition, and a 90-day warranty. This will not be the case with some wholesale suppliers, as there are many cases of product misrepresentation, incomplete manifests or even completely missing manifests. If you encounter any of these red flags, the best thing to do is turn around and leave that pallet, or even that wholesale supplier’s warehouse behind you.
Searching for such a wholesale supplier online could be an even better option. Although the delivery costs could be higher since you are not ordering from your local wholesale supplier, but from a different state, or even continent, however, it could be worth paying a higher delivery fee if the savings elsewhere are enough.
Finding the right products and the right wholesale suppliers will allow you to fill an undersupplied market, stay competitive with prices and still make a decent profit.
Sourcing Wholesale Electronics
It is possible to get wholesale electronics at prices that are way below wholesale. As unbelievable as it seems, it is true if you are working with liquidators. These companies help manufacturers and retailers get rid of overstock merchandise as well as customer returns.
However, as with the wholesale suppliers, don’t jump in with the first liquidator you find, research is key. The same rules apply as with the wholesale suppliers. Check the services the liquidator offers, their shipping arrangements, browse the forums for customer experiences and reviews. All this should work into your decision-making. If you find that a liquidator has been in the business for a while and has built a positive reputation, only then should you check out their warehouse or website.
You might be asking yourself how is it possible that products sold by the liquidators are priced below wholesale?
Unlike wholesale suppliers who buy merchandise, break it up into wholesale pallets and resell it for a profit to individual buyers or other retailers, liquidators rarely own the merchandise. They function as a bridge between the manufacturers, retailers and the buyers.
There is also another way of further reducing your prices and maximising profit. Although it is recommended to work with a number of wholesale suppliers and liquidators at any given time, having prefered sources could lead to price reductions. Wholesale suppliers and liquidators will award loyalty. So if you are a returning customer, you might be offered more flexible terms, better delivery options or you may even be notified in advance when a product you are looking for is about to arrive to their warehouse.
As a final word of advice, we can only say you should arm yourself with patience and not expect to make splash sales as soon as you open shop. It takes time, and profits might be lower in the beginning, but dream big, set your goals high and work towards them. Very soon, you would be able to branch out and add smartphones, laptops or tablets to your offerings, grabbing your own share of the most profitable market segment online.