wholesale cell phone

How Much Can You Make Selling Used Cell Phones?

How Much Can You Make Selling Used Cell Phones?

The size of any possible profit margin is a critical factor in any business venture. Also the most appealing markets, where sales volumes and profits tend to be high, will fail the profit margin test on occasion.

There are a variety of reasons why the demand for used cell phones has begun to eat into the growth of the new smartphone industry in recent years. The fact that used cell phones are so much cheaper, despite the fact that new handset RRPs have continued to rise, has prompted an increasing number of customers to search for better value in used mobile phones. As a result, more retailers have entered what is by all accounts a burgeoning industry.

However, an equally critical piece of the puzzle is the fact that selling used phones generate a higher profit margin than selling new phones. Vendors are fortunate to get margins of more than 3-5 percent on new cell phone sales due to high RRPs and strong control of the wholesale phones and retail markets by big-name manufacturers. Despite used phone retail prices being 65-75 percent lower than fresh, retailers can easily make margins of 10% or more due to the greater freedom and low wholesale prices of used phones.

How Much Can You Make Selling Used Cell Phones?

The right phone, with the right margin

In fact, putting a ballpark figure on margins across the entire used phone trade is somewhat misleading because there are so many variables at play. Even if we ignore a company’s running costs and focus solely on the smartphones, the amount of money you will earn from buying and selling a used phone can differ significantly depending on factors such as brand, model, features, case color, and the accessories you ship with it.

Also Read: Tips for Buying Used Wholesale iPhones

Used phone dealers, on average, will make a higher profit margin on higher-value, higher-spec handsets. Let’s say you purchase a mid-range smartphone in average condition for $70 and can resell it for $120. The 100 percent mark-up seems to be rather appealing. However, if you have to spend $25 on refurbishment, plus another $10 on publicity and running expenses, it’s not a good deal. Your gross profit is just $15, representing a 15% margin.

When you purchase a much higher-spec used phone in better condition for $350, you can sell it for $450. This time, the mark-up is just 66 percent. However, you only spend $10 on marketing and maintenance expenses per unit sold as a counterbalance. As a result, the gross profit is $90, a far stronger margin of 26%.

Buying and selling used cellphones

When you purchase devices from JNA Dealer, our trade team has decades of experience in the used phone industry and can advise you on competitive resale rates. On both the normal and marginal VAT schemes, we stock all devices from grade A pristine to C. For more details and a current inventory list, please contact us today.

You can shop with confidence knowing that your first order is covered by our 100 percent satisfaction guarantee, and all subsequent orders are protected by our industry-leading return policy.

Become a JNA Dealer & Sell Wholesale Cellphone Products

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Tips for Buying Used Wholesale iPhones

Tips for Buying Used Wholesale iPhones

In recent years, the used smartphone market has been booming. Trade in used cell phones has risen on the back of customers looking for better value from their smartphone purchases and diminishing interest in keeping up with the ‘latest iteration’ new release cycle, now worth an estimated $20bn dollars worldwide.

The way that wholesale supply has evolved is another reason for the rapid growth of the pre-owned phone industry. In the past, a piecemeal affair left mostly to small-time online operators was the business of acquiring, refurbishing and selling used handsets traded in when a customer purchased new phone.

Now, to the next level, larger-scale professional outfits have taken the used phone wholesale. Capable of sourcing thousands of devices at a time covering all the top models, our robust reconditioning and grading service and US-wide distribution network ensures that retailers can get the models their customers want, when they want, and be 100% positive about the quality of the handsets they purchase.

Inquiries from distributors looking to stock second-hand smartphones want to start with the biggest brands, such as Apple’s iPhone, and sometimes ask for guidance on what to look for when purchasing wholesale devices.

So here are some of our top tips for buying wholesale used iPhones.

Find a reputable dealer

The importance of doing your due diligence on who you are purchasing used iPhones from can really not be emphasized enough. Unfortunately, there is a wide black market for second-hand products run by unauthorized operators, as with many high-value electronic gadgets. Many of them are able to dress up as legitimate companies through the internet.

The danger you take is that orders never arrive, low-quality devices are sent, or stolen goods are even sent. There is no need to take such risks-just do some background checks on the company you are proposing to work with, ensure that they are properly licensed, search around for feedback and consumer reviews, and make your choice based on credibility and proven credentials.

Source stock for quality, not availability

A lack of supply of high quality used stock is one problem we hear most from used iPhone retailers. They claim that they are left to take whatever is available to their supplier, and are frequently frustrated by the physical and operating state of the device. This means that they either have to sell on, earning little margin, for a knock-down price, or else buyers are unwilling to purchase the handsets at all.

In order to prioritize efficiency, we will always advise retailers. Never just embrace inventory just because that’s what a retailer has available-if it’s not what you want, or you’re not pleased with the quality, look elsewhere.

Tips for Buying Used Wholesale iPhones

Also Read : Why People Keep Buying iPhones And Why iPhone Reselling Is Easy?

Check to see if you can benefit from Marginal VAT

For second-hand products retailers, the VAT Margin Scheme is a special tax benefit that provides a lower tax rate and calculates VAT on the margin you make on every item sold, not the full selling price, as is normal. That means that by selling used wholesale iPhones, you can make some essential tax savings. The scheme has strict guidelines, however, and eligibility all depends on whether or not the wholesaler has paid VAT (it only applies when no VAT has been paid on the items previously). Therefore, you have to source stock from wholesalers who also work under the rules of the scheme to take advantage of the scheme.

Buying used wholesale iPhones

One of the advantages of working with a larger Cellphone wholesaler is that the top labels and models are often highly accessible, and our grading system is extremely detailed. On both the marginal and the normal VAT system, we supply from Grade A Pristine to C and even D.

Become a JNA Dealer & Sell Wholesale Cellphone Products

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