You don’t have to be a genius to take note of the incredible changes in consumer electronics we’ve seen over the past few years. Just 10 years ago, the average household had a single communal desktop computer the family shared.
Now, the average household has more gadgets than people! Many of us are constantly attached to one or more of the following: a smartphone, tablet, personal laptop or MP3 player. With that said, it’s no surprise that electronics sell like hotcakes on eBay.
Maybe that’s why so many sellers try to get into this market and why it's one of the most competitive categories on eBay and Amazon. The heavy competition can make it hard to earn consistent, profitable sales (unless you have a big budget, a team of staff and a wealth of retail experience).
However, there is still room to succeed in this market. Today I’ll give you a rundown on the state of the electronics market on eBay and online in general, which should help you decide whether it's a market you want to get into.
Before I get started, let me be clear: I have no agenda here. I’m not trying to convince you to avoid this market, and I’m not trying to convince you to join it. I’ve been selling on eBay since the 1990s, and it’s my job to present you with the facts so you can decide whether to take this on.
Why sell electronics?
- Wholesale electronics are easy to source. There are plenty of good suppliers from all around the world you can work with, including wholesalers, liquidators, drop shippers and manufacturers. Make sure you read right to the end because I have listed some SaleHoo-approved suppliers you can check out.
- The buyer market for electronics is very consistent. It's fair to say that almost everyone is a potential customer when you sell electronics.
- Get repeat customers. Many of these customers can be turned into repeat customers through email marketing, social media marketing, etc.
- The market is ever changing. New gadgets and technologies are always changing, and it’s exciting to bring out new product lines.
Why avoid this market?
- High competition. As I've already mentioned, and as your own intuition has probably already told you, this is a competitive market. You will be competing against other retailers who have years of experience and teams of people to fulfill orders and market their products. That’s tough to go up against. Other product categories are easier for beginners.
- Competition from China. Not only will you be competing against others in your area, but you are likely to come up against China-based retailers. These guys can get goods for a lot less than you. They have local contacts and don’t have to pay to ship the goods across the globe like you do. This means their prices are lower. Also, because taxes and the cost of living in China are lower than in the US, the UK, the rest of Europe, Australia and many other markets, they can afford to sell products for less than you. Example: You and I generally don’t want to sell anything for $3. By the time you list the item, pack it, ship it, etc., $3 just isn’t worth your time. It barely gets you a latte at Starbucks. In China, that same $3 can feed a family dinner, so many sellers in China are happy to work for less, which makes it hard to compete.
- Profit margins can be low due to competition. Is it worth all the risk for a potentially low payoff?
- Issues with fakes. Product sourcing in this category is generally pretty easy, but beware of fakes coming out of India and China. Make sure you always order a sample. You can often tell right away whether it's real. Either way, run a Google search for “how to spot a fake [product name]” and follow the guides, which are very useful.
Can you drop ship wholesale electronics?
You’ll make more sales and better profits if you invest in wholesale lots of electronics. If you sell on your own website, such as a SaleHoo Store, you can make electronics work. Let’s say you sell home wares. You could list a few electronic items, such as rice cookers, popcorn makers, electric knives, etc. Another example: If you sell hair care or beauty items, you could drop ship curling irons, facial steamers or electronic toothbrushes.
In sum, think of drop shipping as a supplementary way to offer more products to buyers, rather than a standalone business model.
SaleHoo-approved suppliers of wholesale electronics that you can trust
If you're a SaleHoo member, you can avoid the anxiety of not knowing whether goods are authentic. Check out these SaleHoo-approved suppliers of wholesale electronics:
- Supplier #1 (Log in or join now to access): Based in Oklahoma, this supplier offers drop shipping along with bulk wholesale orders. The electronic products range from large appliances such as dryers and refrigerators, to digital photo frames, satellite radios, security alarms and more.
- Supplier #2 (Log in or join now to access): This China-based supplier offers amazing deals on a wide range of products, including car DVD players, surveillance equipment, headphones, home theater, microscopes and a whole lot more!
- Supplier #3 (Log in or join now to access): This Texas-based supplier is a direct importer of unique consumer electronics in wide varieties. They support dropshipping with no sign-up fees, and offers quick delivery even for bulk purchases. Some of the products they have are phone accessories, electronic gadgets, smart clutches, and also kitchen gadgets.
- Supplier #4 (Log in or join now to access): This California-based supplier offers great brands at great prices! Brands include Apple (mostly for laptops), Dell, Canon, Samsung and more. You'll find consumer-level electronics that you can sell to your average customer, as well as computer parts such as CPUs, cooling fans, and computer cases, if you want to target a geeky or tech-savvy audience!
- Supplier #5 (Log in or join now to access): This supplier is based in Hong Kong and are an exporter and importer of consumer electronics for over 10 years. They're also authorized distributors of Apple, Nikon, Fujifilm, Leica, Sekonic, Samsung, Panasonic, Tokina, Sony, Olympus, Leica, Canon, GoPro, Tamron, Sigma, Bose, Sennheiser, FitBit, OnePlus, Huawei, and many more.
My final two cents
Electronics can be a fantastic product market, but if you are new to online retailing, I personally think it's best if you spend some time learning the ropes within an easier product market such as fashion accessories, sporting goods or home wares.
If you are really eager to try the wholesale electronics market, wait until you have some funds and some experience under your belt. To browse our directory of trusted suppliers for electronics, fashion goods, baby goods, pet gear, sporting goods, furniture, photography equipment and much, much more, join SaleHoo today!
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