In the world of buying wholesale electronics to resell online, laptops have a special place. To make money by selling laptops there are a few conditions you need to fulfill. These are cheap sourcing, high-quality products, and competitive pricing. This is because the wholesale electronics market is incredibly competitive.
With over 290 million unique monthly visitors from the United States alone browsing global platforms such as Amazon and eBay, there is no shortage of potential customers. But to grab your share of the market you need to be smart and use every advantage you can over the competition. The first goal is to find a cheap source of wholesale electronics; laptops in this case.
Sourcing Refurbished Laptops
If you are looking to sell laptops, buying brand new, even from the manufacturer, will be very expensive due to the high minimum purchase requirements. Unless you have an almost unlimited budget this is not the way to go. If you are only beginning, buying refurbished laptops from wholesale suppliers or liquidators is the direction you should take, and the reasons for this are plenty.
Via LaptopMag: Sales on cheaper laptops continues to grow.
Buying from a wholesale supplier means you are getting wholesale electronics in bulk and for a lower price per unit, which helps you remain competitive in a tough market.
However, looking at the prices on platforms like eBay or Amazon, you would have to purchase refurbished laptops even below the wholesale price in order to stay on top of the competition. To manage that, you would have to build a strong business relationship with your wholesale supplier, meaning it would take time until you could reap full benefits of working with one. Benefits include lower prices, flexible payment or shipping terms and all these are usually awarded by wholesale suppliers to their most loyal customers. If you are a beginner, this is not something you can rely on.
There is, however, a way that combines buying in bulk and buying from the manufacturers in one, and that is buying from the liquidators. Whether you are buying or bidding at a liquidation auction, the main advantage is the price, which is below wholesale. This gives you the perfect start and secures a higher profit margin once you get to the resale.
You will notice that liquidators offer merchandise at prices close to those offered by the manufacturers. This is because top liquidators will have exclusive contracts with the manufacturers who list their products directly through the liquidator’s website, keeping the prices very low. Unlike wholesalers that buy merchandise from retailers or manufacturers and sell them on by the pallet with a certain markup, liquidators simply act as a bridge between manufacturers, retailers and the end customer, keeping the prices low.
It has to be stressed that you need to find the most reputable online liquidation auction you can. Working with unreliable liquidators could lead to receiving faulty merchandise, damaged laptops or even scrap you would never be able to sell.
One advice we can give is to double check all the information you find on the website or at the wholesaler’s or liquidator’s warehouse. Browse the internet for client reviews, because these will help you select the ones that the most customers are satisfied with.
Another hint is the manifest. This is a list of all the products contained in a wholesale pallet. Top wholesalers or liquidators will provide a detailed manifest as well as great customer service. However, there are lots of cases of misrepresentation, missing details or completely missing manifests. If you ever come across a dodgy manifest, stay away from that pallet or that supplier.
Buying High-Quality Wholesale Returns and Refurbished Laptops
Usually, this would be a sign to turn around and look elsewhere, but refurbished laptops are not a bad idea.
First, refurbished does not always mean used until it is on its last legs. Some refurbished laptops are actually customer returns that have only been returned because the buyer did not like the way the laptop looks when he or she received it. This is not unusual, as at least 30 percent of products bought online get returned.
But, due to contracts with liquidators, and to keep their own reputation up, manufacturers put the returned laptops through strict testing and refurbishing procedure, replacing parts that have to be replaced before putting them up for sale again. This means you are getting a brand new product. However, since it can’t be sold as new anymore, it falls into the returns category, which reduces its price significantly.
A testament to the confidence in quality is the usual extended warranty you get on such products. In any case, reputable liquidators and wholesalers will add details describing the merchandise condition, which means that you can pick and choose the merchandise that suits your needs.
Selling Refurbished Electronics Competitively
After you have purchased your wholesale lot of refurbished laptops, or any refurbished items, making money on them is then the last part of your quest.
The goal is not to try and make a big splash with one sale and return your investment immediately. You have already managed to procure the products very cheap which leaves you with a significant profit margin. Make sure you look at your competition and compare prices. This will enable you to set a competitive price without damaging your profit margin too much. The goal is to mark the price up enough to make money but also to be below your competition. Pricing too cheap could also raise red flags for the buyers, so make sure your prices are not too cheap.
If you are looking to make the most out of buying wholesale merchandise and selling it on eBay or Amazon, do check our Ultimate Guide to Selling on Amazon, which will take you through every step of your journey to a successful resale business.