Why Wholesale Electronics Can Ensure Small Business Success

2017-07-11

Consumer electronics is big business. In fact, 2017 is expected to see $228 billion in sales from this market segment alone. That makes it a highly profitable niche for new business owners to consider.

Graph Source: https://www.statista.com/statistics/272116/ce-industry-growth-us/

However, entering the consumer electronics segment can be quite challenging – you’re going up against some of the largest retailers in the world, including Amazon, Best Buy and the like. The good news is that wholesale electronics can give small businesses an edge in many different ways. How can this help your fledgling business?

Buying Popular Products

As mentioned, the world of technology changes very rapidly. One day a particular product is very popular, a week later, it’s been supplanted by the next big thing. Obviously, investing in a significant inventory can be a gamble here. You run the risk of losing a lot of money if the products that you’re buying fall out of favor with consumers.

The good news is that wholesale electronics can ensure that you have access to hot products, in quantities that won’t endanger your budget. Rather than buying electronics in bulk, you can buy by the pallet or sometimes even by the case. This ensures that you’re able to capitalize on changing trends in the industry, but still have the agility needed to adjust to shifting consumer demand and even manufacturer-derived influences.

For instance, Apple’s move away from the old-style 30-pin power adapter to the lightning port caught many companies by surprise. Apple also caught the industry by surprise with their shift away from wired headphones, although the fact that most other portable devices and smartphones still offer a jack for normal headphones meaning that the retailers weren’t in quite such a tough spot.

Selling Your Products on Multiple Platforms

Speaking of agility and adaptability, another advantage of wholesale electronics purchases is that they allow you to harness multiple platforms for your needs. Today, more and more retailers are finding that not only do they need to sell through their physical storefront and their website, but they need to take advantage of other options out there. Amazon is the single largest retail space in the world, and the company allows other sellers to make their products available through their website.

You can even choose to have your orders fulfilled by Amazon if you’re willing to ship your products to a fulfillment center. Buying in smaller lots through wholesale electronics suppliers is an ideal way to take advantage of this opportunity.

Depending on the wholesaler in question, you may be able simply arrange for them to ship your purchase to a fulfilment center after you win the auction. However, if that’s not possible, it’s still a simple matter to ship it yourself.

The Ability to Specialize in Product Niches

Today, it doesn’t really pay to be a jack of all trades when it comes to consumer electronics. The market is pretty saturated in that regard, with Amazon seeing the lion’s share of attention, followed by Best Buy and Walmart. Where does this leave small retailers?

Actually, you have a significant advantage here. The secret to retail success in the Amazon Age is not to become a generalist, but to become a specialist. You’ll find this is true in pretty much all retail segments, from clothing to outdoor sports and more. It also applies to electronics.

How do you specialize in the world of electronics? Really, you can do it in any number of ways. You might decide to open up a store that focuses only on tablets. You could choose to focus on wearable technology with a sports focus (smart watches from companies like Garmin and even Apple are incredibly popular right now, and the number of products is growing rapidly).

The options are almost limitless here. And, by working with a wholesale electronics supplier, you’re able to ensure several things. First, you’ll be able to purchase your inventory at a low price, far below what’s possible with a distributor, and often lower than conventional wholesale prices, too. Second, you’ll have access to products from some of the top names in the electronics industry, as well as less-well known brands, and even generic items. In addition, you’ll be able to take advantage of products sold in a range of conditions, including:

New: New in the box products are offered at significantly reduced prices, allowing you to maximize your return.
Overstock: Overstocked items are sold by major retailers like Walmart, Sam’s Club and others in an attempt to recoup some of their investment.
Returns: Returned items should be inspected for defects or damage, and then sold at a price that corresponds with its condition.
Refurbished: Damaged returns should be refurbished to like-new condition, and then sold at a deep discount.

Make Money Using Loss Leaders as Incentives

Retailers have long used loss leaders and incentives to get customers into their stores. You’ll find these common throughout the retail world, and they include things like “door-busters” and limited time offers, as well as “free gifts” with a qualifying purchase. Now, smaller retailers can use the same tactics as large companies thanks to the value offered by wholesale electronics suppliers.

You can invest in popular electronics and gadgets in smaller quantities, and use these as giveaway items, or you can bundle them with other items to increase sales. You can use them as prizes, and in almost any number of other ways. Each of these can increase foot traffic through your doors, and allow you to enhance profitability while reducing the risk you take when purchasing new inventory.

Ultimately, working with wholesale electronics suppliers can help ensure your small business is successful.

Henley Johnson

Henley 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 Henley is here to help you grow your business.

View Henley’s Bio on YouTube.