Interested in reselling electronics and earning extra cash online? The electronic resale market presents a great opportunity to do so.
For resellers, the electronic resale space opens the possibility of a lucrative buy-and-sell business with a solid potential for profit and growth.
But starting a resale business from scratch requires careful planning, sourcing, and marketing. That’s where we come in.
In this article, we’ll discuss everything you need to know about starting your own electronic reselling business.
We’ll cover the factors to consider when reselling electronics, how to resell electronics, and the best marketplaces for this venture.
- Is it Possible to Resell Electronics?
- What is the Value of Electronics?
- Things to Consider When Reselling Electronics
- Where to Resell Electronics
- What You’ll Need to Resell Electronics
- How To Resell Electronics: Step-By-Step Instructions
- Can You Make Money Flipping Electronics?
- Similar Tutorials to Check Out
- Wrapping Up
Is it Possible to Resell Electronics?
As prices go up, more and more people rely on second-hand stores, thrift markets, and online resale websites for cheaper goods. Among these goods, electronics fetch some of the highest profits.
The electronic resale market has risen in popularity by nearly 30% in the last three years. By 2028, this figure is expected to grow by at least three times.
Tech is progressing at an increasingly high pace, and customers are always looking to purchase new and upgraded technology. This means that, with the right selection of goods, you’ll have no shortage of customers wanting to buy a thing or two from your business.
Add the fact that customers are always seeking out new products to replace outdated models, and you’re met with a continuous cycle of supply and demand to capitalize on.
What Kinds of Electronics Sell Well?
There’s an endless supply of electronics to resell, but only a select few have exceptional resale value and a strong potential for lucrative returns. Some of the best-selling items are as follows:
- Smartphones, particularly flagship phones
- Video game consoles
- Tablets and laptops
- TVs and home entertainment systems
- Cameras, especially mirrorless and DSLR (digital single-lens reflex) cameras
- High-quality audio equipment like headphones, sound systems, and speakers
What is the Value of Electronics?
In other words, how do you determine the resale value of electronic items?
The resale value of electronics can depend on several factors, including the product’s manufacturing date, brand, condition, and market demand.
1. Demand and Market Value
The easiest way to determine the value of an electronic item is to research how much it’s being sold in auctions, second-hand stores, and online markets like eBay, Decluttr, and Craigslist.
2. Product Condition
Well-maintained electronics fetch a higher resale value. Customers are willing to pay a considerable amount for items that appear new or nearly new, with little to no defects.
3. Manufacture Date
Unless you’re dealing with limited edition items where age is almost always an advantage, the newer the item, the higher its value.
The emergence of newer and more advanced models depreciates the value of their predecessors, so resellers shouldn’t hold an item for too long lest they lose profit.
Speed is a critical factor in capitalizing the highest profit margins.
4. Brand and Model
Well-known and highly sought-out models from Samsung, Apple, and other reputable brands hold their value better in the resale market.
This is especially true for flagship and high-end variants within a product line. These devices attract buyers seeking cutting-edge tech and premium features.
Budget and mid-range models don’t fetch as much as their flagship counterparts, but they still have a market among cost-conscious buyers.
These models have a more stable demand over time, allowing resellers to build a consistent inventory and maintain a healthy return on investment (ROI).
Do Electronics Lose Value Over Time?
Most electronics lose their value over time. Devices and electronics that rely on outdated technology quickly lose their value as people naturally prefer devices with modern and compatible features.
That said, this rule only applies to general everyday products. Collectible, vintage, and limited edition electronics with historical significance increase in value due to their popularity among collectors and vintage enthusiasts.
Things to Consider When Reselling Electronics
When reselling electronics, there are several factors to consider to ensure a successful and profitable venture.
The unconditional fact is this: faulty electronics have low resale value. No matter how well-known the brand, no one’s willing to pay a premium for a device that doesn’t function as intended.
Therefore, ensure that the item you’re reselling is in good condition to not only maximize profits but to build a reputation in the reselling space.
Before putting them up for sale, take the time to address any faults and issues the device may have and either send it off for repair or fix it yourself.
If the device has a poorly functioning battery, for example, replace the battery or clear out some dust from within the device. Simple fixes like these can significantly boost the value of your item.
2. Item Price
Be realistic about how much people will pay for your electronics.
Put yourself in their shoes: would you pay the amount you’re charging if you could find similar items at a lower price?
Online resale platforms are your biggest source of item price information. See what similar items are selling for and set the price accordingly.
The platform you select can significantly impact the visibility of your listings and the overall success of your sale.
Platforms like Amazon, DeCluttr, eBay, and Craigslist have high traffic and a vast user base, making them fitting options for reaching a large pool of potential customers.
You should also consider selling your electronics in electronics-based resale platforms, like Gazelle and Swappa. These platforms cater to tech-savvy individuals who are constantly on the lookout for a great deal.
4. Product Depreciation
When reselling electronics, be aware of how they lose value over time and set realistic expectations for their resale price. If you’re reselling a five-year-old product, for example, expect it to sell at a significantly lower price compared to its original purchase price.
5. Original Packaging and Accessories
Customers want the electronics they’re buying to be as brand-new and authentic as possible. The box, accessories, instructions, cables, etc., significantly affect their perceived worth.
Selling electronics in a complete package makes them more enticing to buyers willing to pay a premium for the full, authentic experience.
Where to Resell Electronics
When it comes to reselling electronics, these marketplaces stand out from the rest:
With a whopping 100 million visitors each month, eBay is arguably the biggest online marketplace for reselling electronics. It’s accessible in a multitude of countries, allowing you to connect with an extensive customer base.
What Makes This Option Great
Founded in 1995, eBay has since earned a reputation for being one of the most trusted marketplaces online. It’s the go-to destination for those seeking a diverse range of products, including electronics.
The platform’s user-friendly features, global accessibility, and strong seller protection make it a prime marketplace for reselling electronics and maximizing profits.
- Fees/Commission: 13.25% of the sale price, plus $0.30 per order. If you list more than 250 items per month, you’ll pay an insertion fee of $0.35 per listing.
- Payment Methods: PayPal, credit card or debit card, Apple Pay, Google Pay, wire transfer, and payment upon pickup
Gazelle is an online marketplace that specializes in buying and selling pre-owned electronics, particularly smartphones, laptops, and tablets.
What Makes This Option Great
With Gazelle, sellers can sell their electronics at a competitive price. Gazelle uses a grading system to determine the quality of the products you’re selling, from “Like New” to “Fair.” If your electronics feature little to no wear, you can expect a higher offer.
It’s important to note that Gazelle isn’t a marketplace for sellers and buyers. Instead, it’s a marketplace that offers decent payouts for unwanted electronics.
This makes it an excellent platform to sell electronics quickly without worrying about negotiating with buyers or managing listings.
- Fees/Commissions: No fees. Shipping and handling fees are covered when you resell an item.
- Payment Methods: Check, Amazon gift card, PayPal
Swappa is a user-to-user marketplace for nearly-new and unused electronics. Unlike eBay and other auction-based platforms, Swappa follows a fixed-price model where sellers list their products at a set price, and buyers purchase them directly.
What Makes This Option Great
Swappa serves as a safe, reliable, and easy-to-use marketplace for selling used electronics.
When a customer buys your product, you instantly receive the amount via PayPal without the involvement of a middleman. And since it follows a fixed-price system, you won’t need to go through the hassle of negotiating for higher fees.
- Fees/Commissions: 3% commission fee, plus PayPal payment processing fees of up to 4%.
- Payment Methods: PayPal
What You’ll Need to Resell Electronics
Now that you know the best places to sell electronics, here’s what you need to start reselling:
- In-demand electronics: Ensure that the devices you’re selling are in high demand and in good working condition.
- Sourcing and Procurement: Determine where you’ll source the items you’re selling. You can buy electronics in bulk, buy used devices from individuals, or acquire refurbished items from reputable sources.
- High-quality images: Instead of pulling company photos from the web, it’s better to take high-quality pictures of the item you’re selling. Use clear, well-lit photos and detailed descriptions to entice more buyers.
- Packing and Shipping: Have appropriate packaging and shipping supplies ready to safely ship the items to your customers.
- Above-average customer service skills: Answer any and all questions potential buyers have about your products to create confidence and trust in your reselling business.
How To Resell Electronics: Step-By-Step Instructions
Here’s how to effectively resell electronics:
Step 1: Do Tons of Market Research
Start your reselling business by researching and identifying popular products, models, and features that are in high demand.
Step 2: Source Your Electronics
Once you’ve identified the products you want to resell, purchase these products from individual sellers or buy-bulk platforms like Mirakl and TomTop.
If you’re good with tech repairs, second-hand stores and garage sales can be a goldmine for electronics to refurbish and resell.
Step 3: Set a Competitive But Realistic Price
With the information you’ve obtained during research, set a competitive yet realistic price for your electronics. Objectively assess the condition of the product based on its functionality, physical appearance, battery life, and more to determine the real value of your product.
Step 4: Choose a Resale Platform
Select an appropriate resale platform to list your products.
If you’re looking to make a quick buck, Gazelle is a fantastic platform because instead of selling to individual customers, you’re selling to the company itself.
Just be aware that Gazelle makes a profit by marking the items it buys for a higher fee, so won’t be getting the maximum profit for your item.
eBay, Swappa, Craigslist, and Facebook Marketplace allow you to sell your items at a competitive price due to their diverse audience and wide reach.
Patience and effective marketing strategies increase your chance of finding a buyer willing to pay a fair price.
Can You Make Money Flipping Electronics?
Absolutely, especially if you’re doing the flipping yourself! Craigslist, Facebook Marketplace, and Letgo are great platforms for finding cheap electronics that you can sell for a profit.
Electronics from these platforms often have minimal issues that can easily be fixed with a bit of technical know-how and TLC.
Flipping phones, in particular, present a promising opportunity in the resale space. Students and tech enthusiasts often seek new mobile phones at affordable prices, making the phone resale market a thriving business.
What Is an Electronics Resale Business?
An electronics resale business is exactly what the name implies: a business that sells used electronics. This business capitalizes on the demand for affordable electronics and opens the opportunity for high-profit margins.
Is Reselling Electronics a Good Way to Make Money?
With the right strategy, reselling electronics can be a ludicrous business. Here are the advantages and disadvantages of reselling electronics:
Pros of Reselling Electronics
- Low initial investment
- Diverse product range
- Access to numerous online marketplaces like eBay, Amazon, Swappa, and more
- Potential for rapid growth
Cons of Reselling Electronics
- Highly competitive market
- Fluctuating prices of electronic devices
- Repair and refurbishment costs affect overall profitability
Similar Tutorials to Check Out
If you found this article helpful, you might find these tutorials equally informative:
- Resell Hosting: With the strategies highlighted in this post, you’ll have a solid foundation on how to become a successful hosting reseller.
- Resell Apple Devices: With a strong brand reputation and loyal customer base, reselling Apple products can be a profitable and rewarding venture. Learn about the best practices and strategies for reselling Apple devices.
- Resell Medical Equipment: Discover the benefits and essential considerations when selling medical equipment.
Reselling electronics online is an excellent way to earn extra money. With the right strategy, you can make double and sometimes triple what you’ve paid for the product you’re selling.
We hope you found our guide on how to resell electronics helpful. If you have, don’t forget to share the article and tell us what you think in the comments.