February 17, 2021
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.
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.
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.
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.
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.