Can You Make A Profit From Buying Wholesale Electronics?
Part Two
By Robert C. Potter
The answer to that question is yes and no. You can never compete with the likes of Amazon.com, Best Buy, or Circuit City, unless you have been blessed with millions of dollars, great marketing research, and a corporate infrastructure that can produce a consistent and enormous sales volume year after year.
One of the keys to successful sales of this product is to find a niche within the consumer electronics category. Margaret Booth presents a short and informative expose on how to find selling niches within the consumer electronics market.
Secrets To Selling Consumer Electronics Online By: Margaret Booth
The other option for carving out a competitive niche is to fish at the bottom of the consumer electronics supply pond, commonly referred to as the “surplus and salvage” industry. However, it you are unfamiliar with surplus and salvage electronics, this is not the type of product line that you want to pursue. Please refer to my article "The Ten Tenets Of The Surplus And Salvage Industry" before you even consider this type of product sourcing.
Companies like Best Buy and Circuit City, forward whatever overstock they have to third party logistic companies that can be resold to businesses and individuals. Most of that overstock, while having a few working items, is mostly salvage merchandise and customers returns.
Unless you have experience in small appliance repair, or know how to recycle electronic parts, then purchasing surplus and salvage electronics is basically a waste of your money. The number of "junk" loads of consumers electronics merchandise that is generated from surplus dealers and reclamation centers far outweigh the saleable product.
Any surplus dealer or liquidation auction should provide you with a disclaimer before
you purchase any variety of salvage electronic merchandise. On Liquidation.com, the
warning listed below is featured on some auctions that sell bulk electronics.
IMPORTANT: Please note that the condition of this lot is SALVAGE. Salvage assets
are intended for professional buyers, as most can be used only for parts. These
assets are offered "as-is, where-is" with no returns, guarantees, or claims as to
working condition.
You can find some bargains, as well as working consumer electronic merchandise among the rubble but they can be few and far between. You need to actually visit the company
doing the selling and physically inspect any surplus electronics they have for sale. Besides finding surplus bulk lots of electronics for sale on auction sites like Liquidation.com there is another online auction venue by which you can purchase surplus electronics.
This
online auction works in partnership with Best Buy, and sells surplus and salvage electronics
in bulk, by the pallet and truckload. The name of that company is Techliquidators.com.
And, once again, I stress caution here.
This website (Techliquidators.com) is for professional surplus buyers and individuals who do not mind putting up with damaged customer returns and have the ability to refurbish the products for resale. You need to be present to inspect any merchandise that you might think about purchasing.
Electronics, overall, can be a very hard and competitive product category to make a profit from. It requires research, and the ability to find a niche that has not already been filled by larger corporations and other consumer electronics competitors.
Want to find wholesale supply sources of consumer electronics? We have
over 100 supply sources in our electronics products category.
Click here for more information.
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