As someone who has come into contact with different segments of the refurbished items business, I have noticed that it remains a grey area for many people. In this article, I will shed light on various aspects of the business and hope to answer most FAQs. The points I discuss will benefit both buyers and people looking to venture into the refurbished electronics business.
What Are Refurbished Electronics?
Refurbished electronics are generally devices that have previously been used then returned to a manufacturer for one reason or another. These electronics are repaired and rebuilt afresh, then later, they are tested for functionality and any defects they may have before being sold to the public.
Such items are repaired and resold by the original manufacturers. You will find some refurbished electronics that are labeled factory-certified. This means that these electronics have been taken through additional tests to ensure that the product is brought up to the manufacturer’s standard. For this reason, products with this label will cost a little more.
Buying refurbished electronic goods is an excellent way of saving any company’s or individual’s finances. People wanting to start a small-scale company can venture into a refurbished electronic business. Like any other business, they might need a shop (physical and online both), a few employees to handle the sales, marketing, stocks management, and perhaps a small business tax accountant along with a sound business strategy.
It may not take a lot to make a refurbished electronic business successful. However, like any other business, this one has players who are not legit. I have noticed some people use the ‘refurbished’ tag to dump substandard or old electronic devices. Some dealers also sell refurbished items at a much higher price to unsuspecting buyers.
To avoid this, always read the return policy carefully. After purchase, I’d advise checking immediately for any functional problems and return on time before the grace period is over.
It’s also important to check the length of the warranty. Refurbished electronics have shorter guarantees than new ones starting from as low as 14 days. If I am buying business stock, it would be wise to purchase batches that I am sure will move within a short time.
What Are Some Popular Items That Are Refurbished?
- Mobile Phones
Globally, there are hundreds of new phone brands launching new phones in the market. But there are bigger brands like Samsung and iPhone, which many people dream of owning but cannot afford a brand new one because they are costly.
Refurbished phones come in as a welcome alternative. There are many refurbished phones of these brands that are in very good condition and also very affordable. Refurbished phones are by far the most purchased electronic devices in the market, according to a 2019 NSYS Group survey. While refurbished phones can be a great alternative to spending on brand-new phones, it’s always wise to be extra careful with the devices being used. The phones do go through many tests and inspections before coming to market, nevertheless, you as a consumer should take Security and Your Phone very seriously. The same goes for anyone else who plans on buying a mobile device-taking necessary security measures should be a priority.
That said, refurbished phones are definitely a great option for affordable yet branded smartphones. Similarly, people sometimes buy broken phones, especially iphones, online that they know they can fix by taking to a mobile iphone repair shop for less money than buying a new one. However this isn’t as recommended because you don’t always know the exact state of the phone.
- Computers
Laptops, notebooks as well as tower style computers, are very common. They are widely purchased by new users, programmers, gamers, hardware enthusiasts, among others. There are also some parts used for customization that I can get at cheaper prices compared to what I would have bought if I went for a brand new one.
- Video Game Consoles
Video games are not only for kids; even adults have warmed up to them. Younger people enjoy playing the latest releases of the gaming systems more, while older adults tend to enjoy the vintage selection. And this is where refurbishing comes in; manufacturers refurbish old consoles to give users a chance to relive these earlier versions. The balance helps keep the refurbished video games’ market flowing.
Advantages of Stocking and Buying Refurbished Electronics
Cost Saving
The main benefit of buying refurbished electronics is to save on costs. The prices are much lower, considering they are reconditioned by manufacturers from pre-existing materials. As a business person, these items are fast-moving and still fetch nice profits. Moreover, if you are in doubt due to the lack of refurbishing knowledge or worry about investing in a physical shop and repair workstation, you can explore dropshipping options. By starting a dropship refurbished electronics business, you can buy the goods from other refurbishing suppliers and provide them to your clients without stocking them. Moreover, there can be other benefits as well:
- Certified Testing
Every refurbished electronic item is taken through certified testing that is carried out by manufacturers and/or refurbishing experts. In case of faulty parts, they are repaired and retested before selling.
- Reliability
Before these gadgets are resold, manufacturers ensure they test and recheck them. Ensure that devices are bought from certified and authorized suppliers and dealers or direct from the manufacturers because reliability is assured.
- Older Models Are Available
Some people prefer older models of electronics as opposed to new and upgraded versions. Older versions fulfill user requirements almost as effectively as new ones. Also, it’s easier to get a hold of an older version that the manufacturer discontinued for one reason or another.
Cons of Dealing Refurbished Products
- Short Term Warranties
- Refurbished electronics offer short warranties.
- Consumer Reluctance
Although the market is huge for refurbished items, there is still some reluctance and distrust from many buyers. The release of new models also causes excitement that could take away a chunk of potential buyers. It is, thus, important to properly identify demand before bringing in stock for any business.
The refurbished electronics business is very viable at any level right now. Like for any other purchases, however, I always advise a SWOT analysis before diving in.