Liquidation Auctions: Why Electronics?

When looking for products to buy and resell online, there are a few things to consider. Is there a demand for that product or type of product? Is the market oversupplied or is there a shortage of supply? Do you have to do additional marketing for the product or is it a type of product that markets itself?

These are all questions that can be answered by doing thorough research. However, once you are done researching, you will find that wholesale electronics are always in demand, and liquidation companies have the best prices. So, what is all the fuss about?

Wholesale Electronics Don’t Need Much Marketing

Electronics fall into the category of the products that don’t need any additional marketing, especially if we are talking about smartphones or laptops. There is always a healthy demand for these products, but this also means that the competition is rather tough.

However, more often than not it turns out working with electronics is more lucrative in comparison to other products, as electronic gadgets are becoming an essential part of everyday life, practically a necessity. Compared to other market segments, like clothing, electronics have the major advantage of not being affected by seasonal demand peaks. While demand for summer or winter clothing fluctuates depending on their respective seasons, smartphones are always in demand.

The same can be said about technical merchandise like tools. These, however, may require more specific knowledge from the sellers, who have to understand the function and the purpose of each tool in order to be able to market it properly. In addition, such niche markets attract a specific customer group while electronics, especially laptops, tablets or smartphones have no such limitations.

Statistics show that electronics and books are the most sought after products by online shoppers, and smartphones have taken over the top spot from laptops over the recent years.

But this means you have to be innovative in order to secure your share of that market. Liquidation companies are your best option when it comes to sourcing electronics for a couple of simple reasons that will put you ahead of the competition: price and quality.

If you are interested in reselling smartphones, you will find that prices start well below wholesale. Whether you are buying straight away or entering an auction, purchasing wholesale electronics through a liquidation company gives you the opportunity to stay very competitive in the online market while still making a significant amount of money.

Quality is also an essential factor, because this is what builds your reputation as a seller, making the customers return to your online store. Although there are refurbished items on offer at liquidation auctions, the quality is not compromised.

This is because top liquidation companies work with the best manufacturers and retailers, ensuring that the electronics offered are of top tier quality. Even refurbished items are tested and brought to the point where they are as good as on the first day they left the production line. This is backed on our site by a 90-day warranty.

For your security, always look for the wholesale pallet manifest. Provided by reputable liquidators, these are lists of items each pallet contains. If such a list is incomplete, or the supplier withholds information, or the manifest is missing completely, it is best to stay away from that supplier. Reputable liquidators and wholesale suppliers will not only provide the information about the number and type of products in each pallet, but also the condition of each product. This is very important if you are looking to purchase quality merchandise and not broken or damaged goods or even scrap. With customer returned and refurbished products often being sold by liquidators, you have to beware of possible quality issues. In fact, it is not unusual to find suppliers misrepresenting products or withholding information. Buying blind could lead you to all sorts of trouble.

Finding a Niche Market

But, if the competition is too much for you and your profit margins are rather slim and not worth the work you put in, there is another way to approach the business of selling electronics online.

You could look into the accessories sector and find a niche market that is short of supply. While there are many smartphone and laptop sellers online, there might be a lack of sellers of specific accessories. Finding such a product and an undersupplied market will significantly cut down on competition, making it easier for you to stay competitive. This will allow you to make a significant amount of money through selling electronics, or accessories for the electronic products, as niche markets already have a healthy demand you only need to tap into.

Look into gadgets like cameras or audio equipment, maybe even newer trends like drones and quadcopters, as these are still developing markets and jumping in early could give you a head start on your competition.

However, there is much more to running a successful resale business in general and our Ultimate Guide to Selling on Amazon will help you to set up your business from the first step of registering your business and deciding what products to work with until the point you start listing these products online.

In any case, liquidation companies with their services and pricing seem to be the best source for the electronic products that take the top spot among those sought after by online shoppers.

This in itself is the main reason why you should choose to buy and sell wholesale electronics. When all is put together, you are buying and selling products that are always in demand, that require less marketing effort than other products such as appliances, and are never out of season such as clothes or grills. In addition, seasonal products are plagued by availability problems, which is best seen if you try looking for summer clothing during the winter. This is a problem electronics never have. All these are reasons for you to choose electronics as your product to buy and sell online.

Share on social networks

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.