Tips for Starting A Mobile Phone Reseller Webshop
If you’re looking for a web-based business that is in high demand, consider starting a mobile phone reseller shop. The United States has one of the highest rates of smartphone penetration in the world. That’s millions of people who are replacing their phones on average every two years. As buyers become more conscious of the environmental impact of technological waste, the interest in the used mobile phone market has increased.
Before you launch your reseller e-commerce site, you will need to understand the industry to select the best quality products and reach your customers effectively.
Research the Competition
You can learn a lot about rival sellers by interacting with their marketing and sales funnels. For example, browse the inventory of several mobile reselling sites that serve your ideal market.
What kinds of brands do they have in stock? How old are the models, and what are their price points? After reviewing several competitors, you will have an idea of what is currently on the market and the gaps between available stock and customer demand.
For example, you may learn that while there are many people searching for older Nokia cell phones, there are few sellers carrying these models. As you already know there is a demand for this product and few suppliers, it could be an opportunity for you to make headway in a crowded market.
Source Your Products
You will need to establish a pipeline to source and repair used phones. Some retailers purchase pre-owned smartphones directly, while others buy wholesale from other phone resellers or refurbishing firms.
No matter where your product comes from, you must ensure the items were obtained legally. Every mobile has a unique tracking number that can be entered into the Cellular Telecommunications and Internet Association’s database of phones reported stolen and lost.
Additionally, you will need to select a vendor or source with a reputation for high-quality goods. Some types of damage will render a phone unsellable, and if you buy online, you will not be able to catch these flaws until your purchase is completed. Otherwise, find a reseller that allows you to inspect phones in person.
Manage Your Inventory
As there are dozens of major and lesser-known mobile phone manufacturers, resellers tend to carry a wide variety of inventory. Keeping track of your stock and orders can quickly become complicated. If your inventory is poorly managed, customers may encounter out-of-stock or backorder notifications when they try to complete their transactions.
This can discourage the customer and make them less likely to return to your shop. You can avoid these headaches by investing early on in a Product Information Management System, or PIM for e-commerce system that will automatically catalog and track your products.
Create the E-commerce Site
There are a myriad of options for setting up an e-commerce site. If you don’t have strong technical skills or the capital to pay a web designer, you can open a shop under a larger, more established e-commerce retailer like Shopify or Amazon. While this can reduce the time and money you invest to launch your business, these platforms take a percentage of every sale, which can reduce your profits in the long run.
If you want a more customized webpage, you can use an e-commerce-specific web platform, like WooCommerce, and build out your website using Squarespace or WordPress.
Customers judge e-commerce sites heavily on their appearance and navigation experience. Your site should have a user-friendly interface that includes high-quality images and accurate product descriptions. Otherwise, your customers may not trust your shop enough to follow through with their transactions.
Market Your Company
After you’ve set up your shop, you will need to ensure that customers find you. You can market your smartphone reselling site through social media and paid ads. On social media, create engaging posts that encourage potential customers to comment, like, and share. You can also collect important data from social media interactions, such as other products your customers are looking for.
You can also purchase ad space from Google and Facebook, which will put your company in front of your target market. While paid ads cost more upfront than social media marketing, they can have a strong rate of return. For example, Google Ads typically generate $2 for every $1 of paid advertising.
Expand Your Offers
After your shop is established and you’re making consistent sales, you may decide to add additional products to your e-commerce site. Naturally, many phone resellers expand into accessories, such as phone cases, protective films, and headsets.
However, if your market research suggests a need, there is no reason to limit yourself to phones. If your shop has built a strong reputation for high-quality refurbished electronics, you can add other devices, like cameras and laptops to your inventory.