As a wholesaler of used phones, you have the opportunity to make good margins, but the key is to find a good supplier. Here are 10 things retailers and wholesalers should look for before they buy wholesale phones.
1. A Good Reputation
The first thing you need to consider before you buy wholesale cell phones is the reputation of the supplier. Look them up online and see what types of reviews customers may have given them, or talk to references if the supplier doesn’t have an online presence, which can be common in this industry. Look for signs that the company is established, contact the sales team, place a sample order, etc. Bottom line: Look for an industry-leading supplier that has a solid reputation in the business.
2. Reliable and Clear Grading System
Used cell phones range from gently used to those that show signs of their age and history. When you buy from wholesalers that do not offer a clear and reliable grading system, you have no idea of the condition of the phones you will receive. If the supplier offers sample orders, place one so you can see how the grading system works and see how transparent and reliable it is.
Wholesale cell phone distributors that offer a clear and consistent grading system give you a way to understand exactly what you are purchasing. Before you make your purchase, be clear on the condition of the phones and how much you will be able to charge for them to make a profit. You want to look for clear, precise grading and a willingness to stand behind it.
3. Fair Pricing
Reliable cell phone grading lets you know what product you will receive, but you need to do your research before you order your phones to find out what the market will bear. A good grading system will allow you to know which phones you can offer at a slight discount and which ones will need a deeper discount to move. It is important to make sure that your purchase prices are low enough that you can make a profit when you resell the phones. Look for prices that are right for the grade and quality, and buy each condition lower than you can sell it for.
4. Sample Orders
Before you make a large purchase, it is a good idea to order a sample to see the company’s grading for yourself and test all phases of the order fulfillment process. You need to consider things like:
- How easy it is to place an order
- How quickly the product arrives
- Whether you receive a clear manifest that matches what you ordered and includes IMEIs for all devices
- The product quality
5. Product Variety
Whether you want to specialize in selling wholesale iPhones or another type of device, you need to make sure that your supplier carries the most popular models. This will allow you to expand your potential market to those who want the latest and greatest. Featuring a variety of models, especially popular, newer models, will mean you have more consistent demand and less risk of holding outdated inventory. It’s a good idea to have a variety of grades, capacities, colors, and models.
6. Inventory Consistency
When your customers are asking for certain types of phones, you want to be able to get your hands on them as fast as possible. That’s why dealing with a reputable, longtime wholesaler that has consistent and reliably graded supply is so important. LogicalWIreless.com partners with some of the largest suppliers in the industry, including all the major carriers and distribution partners to ensure consistent supply.
7. Fast Shipping
Shipping delays can mean canceled orders and lost business. While you and your suppliers can’t avoid all transportation delays because they are beyond your control, make sure your supplier processes and packs your order quickly from its warehouse. The sooner the products get to you, the sooner you can sell them. Plus, it’s riskier for inventory to move slow, because it ties up your capital. If you are trying to close a deal and sell devices before you receive them, fast shipping is critical. All of these are good reasons to test the supplier’s services before you make a major purchase.
8. Multiple Financing Options
The standard payment method in the wholesale device industry is wire in advance. If suppliers offer other methods like COD, PayPal, or terms, that is a bonus. Your options will likely expand as you repeatedly do business with the supplier. Having access to multiple financing options will help you manage your cash flow and have more control over costs. Some companies do not offer these options, so be sure to read their policies before choosing a supplier.
9. Return Policy
Some wholesale used cell phone companies don’t offer returns. The risk here is that a bad supplier will not stand behind their products, and if you get poor-quality phones, you are stuck with them. One of the most important factors when choosing a wholesale supplier is that they have a return policy that assures you that if something goes wrong, they will do everything they can to make it right.
10. Easy to Contact
If you have a question or an issue, you will want to be able to reach someone quickly. If the supplier does not list complete contact information, that might be a good reason to avoid them. To get a feel for the company, speak directly with an account rep or sales manager. How they treat you in this important first contact is a good indicator of what you can expect from them in the future.
Ultimately, the level of service and quality you get from your supplier will have a big impact on your profitability and business growth. Choosing the right supplier will help you ensure quality, consistency, and an overall positive experience for your own customers.
LogicalWIreless offers the most popular wholesale iPhones from all major carriers. Our grading system lets you buy with confidence, and you can be assured of consistent inventory and fast shipping. If you want to try us out to see if we are a good match for your business, contact us, and we will be happy to help.
