The consumer electronics industry is growing faster than ever. New companies are starting up all around the world to fill the demand for the latest and greatest devices.
Consumers are constantly in need of upgrades, repairs and buyback services to stay up to date with the most advanced technology. Here are the types of business models and startups that are evolving in the electronics industry:
1. Repair Stores
The cell phone repair industry is continuing to rise and currently generating over $4 billion in annual revenue. With over 50,000 cell phone and computer repair stores in the USA alone, the industry is sure to be around for a long time. These types of companies offer phone, tablet, and computer repairs like screen replacements and battery replacements. The majority of retailers will also provide buyback services, accessories and activation plans for the consumer devices.
2. Consumer BuyBack
Consumer buyback was one of the first industries to evolve in the buyback industry. Companies like Gazelle, BuyBackBoss and Trade-In Tech created buyback websites where consumers could sell their devices. The companies will ship you packaging materials and pay you through PayPal or check. There are also many local resellers and retail stores that will pay you on the spot for your used and damaged electronics.
3. B2B Wholesale
The electronics wholesale industry has exploded in the past five years. With so many new gadgets being produced by companies like Apple and Samsung, a huge demand was created for companies to buy and resell used devices. Many people do not want to pay $1000 for the brand new iPhone, but they are willing to pay $400 for a phone that has been used but is still in good working condition. This has created a huge opportunity for business owners to supply other companies with used inventory they can resell in their retail stores or online.
4. R2 Certified
R2 certified companies are government-approved recyclers that are allowed to purchase directly from insurance companies and wireless carriers. Each company must go through a rigorous vetting to get approved and must comply with sustainable recycling and data wipe processes. If you are a business owner that is looking to buy used electronics in bulk, these are some of the best companies to work with. Many R2 certified dealers are selling millions of devices every year around the world.
5. eCommerce
Buying used electronics online has never been easier. You can now find thousands of online sellers that provide used and refurbished consumer electronics online at a discounted price. The online industry will continue to rise as well as the prices for high-demand devices. If you're interested in growing your own electronics business, becoming a seller on platforms like Trade-In Tech, eBay and Amazon is a great way to get started.
6. IT Asset Disposition
IT Asset Disposition, also know as ITAD is the business built around disposing of obsolete or unwanted electronics equipment in a safe and eco-friendly manner. ITAD vendors specialize in the process of recycling, refurbishing, reselling or disposing of business equipment. These types of companies usually work with manufacturers, corporations and school districts around the world. ITAD companies primarily focus on computers, tablets and smartphone devices.
7. Software
With all the new types of businesses being creating, there eventually comes a demand for organization and efficiency. New software companies like PhoneCheck, RepairQ, and Wholecell are providing solutions to businesses that need help with their operations. These types of services include lead generation, quality control, inventory management, order processing and more. As the industry grows, you will begin to see new technology and software companies competing for your business.
The industry is constantly changing and it is up to companies to adapt and innovate their services to actively compete. These are the seven primary types of business models in the consumer electronics industry that are continuing to grow.
If you want to learn how to get started, make sure to check out this article where we explain the top 5 places to sell used electronics.