You don’t need to look far to see that electronics are some of the most popular items in the world. If you’re thinking about working in the electronics industry, you might not be sure how or where to get started. With that in mind, many new companies are realizing how beneficial (and profitable) it is to find and resell clearance electronics online.
In this article, we’re going to go over:
Why do companies create clearance stock
What kind of companies and people buy clearance electronics?
The most important benefits of buying electronics on clearance
Where you can start finding electronics for sale online
Bonus tips to help you buy and sell electronics like the pros
Clearance electronics are items that, for one reason or another, need to get sold right away. By reading this article, you’re going to learn much more information about these types of electronics.
Why Do Companies Put Electronics on Clearance?
Clearance electronics are items that companies need to sell as fast as possible. There are several reasons why companies decide to use a clearance system for their items. Here’s more information about the most common reasons why electronics become clearance items.
Inventory Concerns
One reason companies do this is due to inventory concerns. Every company that sells items has a limited amount of space to work with.
To put this into an example, imagine that a company has a warehouse with 100 large shelves. However, this business can only use 20 shelves to store the electronics it plans on selling. Let’s say that two of this company’s shelves hold an outdated phone brand that isn’t selling at all.
To make room for a newer and more popular smartphone, this company will likely place the older phones on clearance to make room for newer items. By getting the slow sellers out of their warehouse, this business will have room for newer phones that will make this company more money.
A Mistake
Throughout life, everyone makes mistakes. If this mistake happens to someone that’s in charge of ordering inventory, it can result in items getting put on clearance. Fortunately for electronics resellers, these mistakes can happen quite often.
An example of this would be if someone needed to buy 50 new iPhones. Instead, this individual purchased 100 smartphones made by Samsung. Because of this mistake, the Samsung smartphones might have to be put on clearance. While this isn’t the best thing for a company to deal with, it’s great for anyone who wants to find electronics at a low price.
Returned Items
Another reason that items become clearance electronics is that they were returned. If you’ve ever worked in retail, you likely know that customers return items for a wide range of reasons. And not all of these reasons have to do with a faulty item.
In most cases, people return items because they made a mistake while ordering something or they received the wrong item. What’s great about either of these situations is that there was never anything wrong with the item they’re returning. This reason is why many people love finding clearance electronics - because they often find lots of items in new or like-new condition.
Companies Going Out of Business
Unfortunately, not every new business passes the test of time. Each year, companies go out of business for a wide range of reasons. More often than not, these same companies have inventory that they need to either sell or get rid of. When this time arrives, these companies might not have much of a choice besides putting all of their inventory on clearance.
Newer Electronics Get Released
Lastly, you can also find electronics getting put in the clearance section because something newer is about to get released. This often happens with smartphones, tablets, computers, and many other types of electronics.
Because most companies (especially large retailers) want to have happy customers, many of them save a lot of space for brand new electronic devices. So, as the release date for many of these new electronics gets closer and closer, these companies will likely need to clear off some shelf space.
Who Buys Electronics on Clearance?
Many companies and people buy clearance electronics. Something that’s great about clearance electronics is that they’re not often expensive purchases. Because of this, companies both small and large can buy these items without spending a ton of money. These kinds of electronics are also great whether you’re selling items online or in a retail store.
Wholesalers
Electronics wholesalers are people and companies that typically buy electronic devices in bulk quantities. Because of that, wholesalers often love finding clearance electronics. Since these items are usually sold in bulk quantities, this makes life easier for a wholesaler. Because they’re not having to buy electronics from a lot of different listings, wholesalers save time with clearance electronics.
Distributors
There are also people in the electronics industry that act as a sort of link between retailers and suppliers, known as distributors. With that in mind, it’s not uncommon for distributors to buy and resell clearance electronics from one of their sources to another person or company they typically work with.
Retailers
Retailers in the electronics industry can also benefit from finding and buying clearance electronics. However, the process of retailers finding clearance items is a little different than how distributors or wholesalers achieve this goal.
Depending on the size of a company, it’s possible for this business to have purchasers. These purchasers typically look for items on behalf of a company that brings it the best profits. An essential element of doing well as a purchaser involves buying items at the lowest possible price.
Why Should I Buy Clearance Electronics Online?
By this point, you’re probably wondering why so many people and businesses buy clearance electronics online. As it turns out, there are many smart reasons why these kinds of electronics can be great purchases. Here’s a closer look at why you should think about buying clearance electronics online.
Low Prices
One of the main advantages of finding and buying electronics on clearance is that they are often priced low. With these low prices, your company can begin getting the electronics it needs without having to spend a small fortune!
You’ll also find that your dollar or other currency you’re using goes further with these types of electronics. Instead of spending a lot of money to only get a few smartphones or tablets, buying clearance electronics could allow you to walk away with pallets of electronics.
Plenty of Items to Choose From
Another great advantage of buying clearance electronics is that you’ll typically have a lot of items to choose from. Since all sorts of electronics can find their way into clearance listings, the sky’s the limit regarding what types of clearance electronics are getting listed for sale.
One day you could be checking out clearance listings to find lots of smartphones. Then, you could come back to your listings a few days later and find all sorts of valuable computers, smartwatches, tablets, and other types of popular electronics for sale.
Buying Low and Selling High
If you asked many business owners about the secrets to being successful, you would likely find many of them mentioning the importance of “buying low and selling high.” Essentially, this business tactic is simple to explain. It means that you’re buying items for a lower price than you sell them for.
Unfortunately, it can sometimes be hard to find electronics that are inexpensive enough to make a large profit by selling. However, you won’t have this problem when finding and reselling clearance electronics. In most cases, you can find clearance electronics priced much lower than retail prices. Because of this, it's fairly easy to resell these items back and make a nice profit in the process.
Where Can I Find Clearance Electronics for Sale?
It’s now understandable to want sources that you can use to start finding clearance electronics. Fortunately, we have everything you need. By using the sources below, you can soon start building up a sizable collection of electronics to resell.
Trade-In Tech
When you’re looking for clearance electronics, it’s incredibly easy to find what you need on Trade-In Tech. It’s understandable if you haven’t heard of Trade-In Tech yet. We’re happy to let you know more about this company. Starting in 2012, Trade-In Tech began as a wholesale electronics platform for people throughout this amazing industry.
There is a wide range of reasons to experience everything that Trade-In Tech has to offer. With that in mind, here are a few great reasons why Trade-In Tech can help your business grow.
Over 25,000 Members From Around the World
If you want to find and resell clearance electronics, it’s helpful to work on a platform that has a lot of members. Fortunately, you can find exactly what you need on Trade-In Tech. This company features over 25,000 members who work in all sorts of roles within the electronics industry.
Trade-In Tech has members who are buyers, sellers, phone flippers, retailers, electronics recyclers, and much more. Do you have electronics that need to get repaired? We have many members who are professional refurbishers.
What’s also great about our network of members is that they come from all parts of the world. While we have many members in the United States, you’ll also find many international members from popular countries for electronics. These countries include England, China, Hong Kong, Japan, India, and many others.
Protection Against Scammers
You don’t have to use the internet for long to learn that there are many scammers lurking on various websites. Considering that, you might be worried about the thought of scammers finding you on Trade-In Tech. Fortunately, this company has many methods in place to stop scammers from ever entering Trade-In Tech’s platform.
One way this company keeps its members safe is through its verification process. Before anyone can join Trade-In Tech, they must provide us with references. After we complete our background checks, a member can officially join our platform.
We also have an awesome review and rating system in place. This system allows our members to rate how working with another member went. By doing this, Trade-In Tech administrators can immediately learn about and resolve issues should any of them arise.
No Fees
Don’t you hate fees? We know that we do. It seems like you can’t spend money anywhere without having to pay annoying fees. Fortunately, you won’t have to deal with any troublesome fees after joining Trade-In Tech.
No matter if you’re buying or selling electronics on Trade-In Tech, we won’t be charging you any fees. Instead, you can choose to handle your transactions through PayPal or another popular payment method of your choosing.
By not having to worry about fees looming over all of your transactions, you can enjoy keeping more of your money instead of watching it go towards paying fees.
The Buyer’s Request
While it rarely happens, it’s possible that you’ll need a certain electronic device or quantity of items that aren’t for sale at the moment on Trade-In Tech’s marketplace. If this happens, you’re in luck! All you need to do is create a fast and easy buyer’s request.
Trade-In Tech’s buyer’s request is a feature that lets each of our members enjoy. With a buyer’s request, you can quickly send out an alert to our members around the world that details what you want to buy.
Creating a buyer’s request is a breeze to do. You only need to list some information about what you want to buy. After your request is complete, it goes out to our membership network in a matter of minutes.
Build Your Brand
One of the most important things for a company to do is build its brand. Unfortunately, it can take a lot of time and energy to get this goal accomplished. If you’re already trying to run your business, this could be time that you don’t have.
Instead of worrying about how to market your company, let Trade-In Tech take care of this task for you. When you join our platform, you can start building your brand through our membership directory and social pages. After creating these pages, you can also browse the pages of our other members. This lets you learn more about what other members are up to, what they’re selling, and what they’re buying.
You can also become one of Trade-In Tech’s Featured Members to really take things to the next level. Our Featured Members get exclusive placement on the front page of our website. We will also write blogs about your company on our website to get you even more traffic!
24/7 Support
Since 2012, the minds behind Trade-In Tech continue working hard to make sure that this platform is always up and available for its members. With that said, things happen from time to time when you need some help.
Fortunately, Trade-In Tech has a 24/7 support system in place to help. Whether you have a question, comment, or concern, Trade-In Tech’s support team will be there to lend a hand.
eBay
You could also find clearance electronics by checking out eBay. This auction website is home to all sorts of electronics in various conditions. Before joining eBay, you’ll need to create an account and get it verified by a member of this company.
Once you’re a member, you’ll need to choose whether you want to buy electronics through either auctions or by buying them directly. With that said, this decision gets made by the seller.
One of the main drawbacks of working on eBay is the legitimacy of what you’re purchasing. Being such a large platform that accepts most people, there are many scammers trying to sell their items on this website.
With a keen eye, and by checking out reviews, you can ensure that you’re only working with eBay’s reputable members. Also, make sure to check out all images and listing descriptions for anything that you’re interested in. These sections of a listing will give you much more information about what’s being sold. You can also send a message to a seller if you have questions about their listings.
Pawn Shops
Not every place to find clearance electronics has to be a company that operates online. You might be able to find electronics at a low price by checking out local pawn shops in your area. Many pawn shops understand that their items need to be priced fairly to sell.
One potential drawback of using pawn shops to find electronics is that you could encounter someone who is trying to sell items for much more than they’re worth. If this is the case, it’s best to avoid doing business with them. Instead, find another pawn shop or similar business that isn’t trying to take advantage of someone who doesn’t know how much electronics are worth.
Amazon Liquidation Auctions
Another way to find electronics on clearance is by checking out Amazon’s Liquidation Auctions. This is Amazon’s way of making more room for products and can be a decent way to find clearance electronics. Before you can start finding and buying clearance electronics, you’ll need to provide information to Amazon that shows you’re a business owner.
With that said, this section of Amazon isn’t only reserved for electronic devices. Expect to do a lot of sorting through listings to find the electronics you’re looking for. Amazon Liquidation Auctions can feature electronics, but there are also a lot of listings for clothing, toys, and other items.
Local Retailers
Depending on where you live, it’s also possible to start establishing partnerships with local retailers. The key to success with this method is finding companies that are willing to take on outside partnerships.
For example, a large retailer like AT&T or Sprint isn’t going to cut you a deal for bulk smartphone purchases. However, a local retailer that needs to make more sales could be more willing to let some of their clearance items go at a discount.
Before you can start working with these local retailers, you’ll need to find them. Fortunately, you should start getting the contact information you need with a few quick Google searches. While this method can be a little time-consuming, it can help you make extremely beneficial connections.
Social Media (Facebook Marketplace, Instagram, etc)
Many companies can find a wealth of clearance electronics by looking throughout social media. While you might not find a lot of companies selling electronics in bulk on these websites, there are still many people that need to sell their electronics.
If you can spot a good deal, it’s possible to quickly start building up your company’s inventory by checking out social media websites. One of the most popular websites to find electronics remains Facebook Marketplace. This website is social media giant Facebook’s way to have people buy and sell goods through its social media platform.
Facebook Marketplace is set up like a lot of online marketplaces. However, instead of working with people around the world, you’re buying items from people who live near your vicinity. If you live in a popular part of the world, you could find a lot of cell phones and other types of electronics at clearance prices on Facebook Marketplace.
With that said, you don’t only have to use Facebook Marketplace to find cheaply priced electronics. Other popular social media websites include Instagram, LinkedIn, and Twitter. It’s not always easy to find electronics for sale on social media. However, when you do, it’s possible to get great deals.
Buying Locally
If you need another way to find inexpensive electronics, buying locally could be a beneficial method to start using. To start doing this, you can check out websites or apps like Craigslist and LetGo. These companies allow people to create listings for what they would like to buy or sell.
As it is with Facebook Marketplace, the quality and amount of electronics you’ll find on these websites depends on where you live.
One of the major drawbacks of buying locally is that you’re going to be meeting other people in person. Some people don’t find this to be a major problem. However, other people might avoid buying items locally because they don’t want to meet complete strangers.
Private Connections With Electronics Wholesalers and Distributors
As your business continues growing, it can be possible to start meeting and forming business relationships with many companies in the electronics industry. In time, these relationships can put your company in touch with a lot of electronics distributors and wholesalers.
With that said, finding these connections won’t be easy when your company is just starting out. So, you might need to make some sales using the previously mentioned methods before these partnerships start happening.
When you do start establishing these connections, they’re great ways to have access to clearance electronics that other companies might not have access to.
Helpful Tips to Remember Before Buying Clearance Stock
As you begin buying clearance electronics, there are several tips that you’ll want to keep in mind. These tips can mean the difference between getting great deals on electronics or dealing with a lot of headaches. Here’s what to remember before any electronics purchase.
Research Companies Before Buying Any Electronics
When you’re finding and buying electronics in person, it’s fairly easy to see the items that are available for sale. However, buying clearance electronics online can feel like a completely different buying experience. Unfortunately, you’re not going to be able to see items in person when you’re purchasing them online.
To protect yourself against getting scammed, it’s imperative to research any company you’re thinking of working with online. Fortunately, there are several great ways to research a business. One of the most effective ways is to use Google to find out more about a business. Hopefully, you should find a website or business directory listing that gives you more information about a company you’re thinking of working with.
Implement an Inventory Management System
As mentioned earlier, buying clearance electronics allows you to start obtaining a lot of inventory fairly quickly. While this is great, it can quickly turn into a nightmare without some kind of inventory management system in place.
By using an inventory management system, you can have accurate data regarding your company’s inventory. This data can include how many items you have, what you’re running out of, and much more.
With the right inventory management program, your business can start saving more time. When you’re saving time, it’s easier to focus on other important parts of running a business.
Get Your Business Tax ID Number
Understandably, many vendors will want to know that you’re buying electronics as part of a business venture. With that in mind, many of these businesses will require your company to present a business identification number before you start buying electronics.
Having your business identification number lets another company know that you can legally purchase lots of electronics as a business. It might seem like getting this number would be a complicated process. Fortunately, getting your company’s business tax identification number is as simple as filling out a few forms.
There are several ways for you to get your business tax ID or EIN. If you have an accountant or financial institution that you’re partnered with, one of these sources should be able to get your business ID handled.
Another way to get this important number is to contact the IRS Business Tax Line by calling 800-829-4933. You can also choose to either fill out Form SS-4 and mail it to the Internal Revenue Service or visit the official website of the IRS to fill out a digital application.
Consider Tapping Into International Markets
As you continue on the path of buying and reselling electronics, it’s understandable to want to start expanding. Considering that, one of the best ways that your company can achieve this goal is by tapping into international markets.
There are many types of electronics that people around the world want. The problem is that these people can only typically find what’s available in their respective countries. If you have a good selection of international electronics, you can solve this problem for your customers.
Another advantage of working internationally is that you can have access to a massive amount of electronics from popular companies. Chances are, you can find many buyers in the United States that want electronics they don’t normally have access to.
Much like the United States, many other countries have their own companies that need to clear out some of their inventory. Unfortunately, one of the drawbacks of trying to do this on your own is that it can take a long time to find international business partners.
If you want a quick and easy way to start expanding into international markets, think about becoming one of Trade-In Tech’s many members.
Have Profit Margins in Mind Before Buying Anything
It’s a great feeling to finally start buying electronics for your company to start selling. With that said, you want to establish profit margins before buying a single item. Profit margins enable you to price your electronics properly.
The first thing you’ll need to do is start learning how much electronics are worth. Don’t worry, this doesn’t mean you have to start tracking down the values of every kind of electronic device. Instead, narrow your focus and start finding prices for what you want to sell.
For example, if you were buying and selling iPhones, you could check websites like Trade-In Tech, eBay, and similar websites to learn the resale values of all sorts of electronics.
To summarize, buying and reselling clearance electronics can be a profitable way to enter into the electronics industry. However, it will take a little bit of time and energy to get everything right. If you want to kickstart how fast it takes to get started in the electronics industry, feel free to check out the Trade-In Tech blog. This is where we post a ton of free content, all of which is designed to help companies do well in the electronics industry.