Electronic retailing refers to the use of the internet to sell products and services. It is also known as e-tailing or e-retailing. The sales can be between businesses (B2B) or businesses to consumers (B2C). Electronic retailing has been going on for decades and has become a significant source of revenue for big brands such as Amazon and Apple and small independent brands.
However, the primary barrier to entry for electronic retailing in selling electronics is the need for online infrastructure for meeting reliable electronic wholesalers and resellers. Small and medium-sized businesses can overcome this challenge using a verified large-scale trading platform such as Trade-in-Tech.
How Electronic Retailing (E-tailing) Works
E-tailing involves an overall process ranging from creating an online presence to networking with customers and delivering the final goods. Successful e-tailing requires having an engaging and easy-to-navigate website. It also requires strong branding, reliable distribution centers and an efficient lead generation system. Furthermore, the seller must ensure they make their pricing competitive so they don’t lose customers just for price reasons.
Another critical requirement for selling online is transparency. Buyers need to know that they can trust their suppliers to deliver quality goods in the right quantity and at the right time. In most cases, buyers prefer to go through platforms that vet each account before they are allowed to trade.
For instance, thousands of electronic wholesalers and retailers choose Trade-in Tech because the platform verifies each company before they are allowed to list their goods. Any customer can email the support team to confirm if a company is what it claims to be. Furthermore, Trade in Tech also provides verified leads monthly to help their customers grow their client base.
Types of Electronic Retailing (E-tailing)
Business-to-Consumer (B2C) E-Tailing
B2C retailing is the most common of online sales, and the one most internet users are familiar with. In this group, the sellers are retailers selling finished goods and products directly via online channels. The seller could ship the goods to the consumer from their warehouse or the manufacturer. Most online stores and brick-and-mortar stores fall under this category.
Business-to-Business (B2B) E-tailing
B2B retailing refers to companies that sell to other companies. For instance, thousands of wholesalers offer low-cost electronic goods such as smartphones and computers to resellers. The resellers, in turn, sell these goods to the consumer. B2B retailing is the best option for businesses that cannot afford to buy directly from manufacturers but still need to source products at a lower price to sell to their consumers at a profit.
Advantages of Electronic Retailing (E-tailing)
There are a lot of tremendous advantages to selling online. Some of these include reaching a wider audience, lower infrastructure costs and automated sales.
Wider audience: Unlike traditional brick-and-mortar stores limited by location, online retailing allows companies to reach a large customer base. For instance, the Trade in Tech platform provides the opportunity to meet top sellers and buyers from the United States, United Kingdom, South America, Hong Kong, Dubai and other parts of the world.
Lower infrastructure cost: Setting up an e-tailing site requires investment, but the set-up cost is generally less than you would spend on a traditional brick-and-mortar store. The startup cost is significantly lower with a platform like Trade-in-Tech. All you need to do is create an account, and you will be connected to tens of thousands of verified buyers and sellers worldwide.
Automated sales: The future of sales is automated sales and checkouts. With electronic retailing, you can make final sales and purchases using computerized systems. This process saves time, reduces few invoice errors, and processes payment faster. However, these benefits only work when you use a reliable online platform or invest top dollars in setting up an ecommerce website for your brand.
Disadvantages of Electronic Retailing (E-tailing)
Just as there are advantages, there are also disadvantages of electronic retailing. These disadvantages include maintaining the platform, getting reputable supply channels and handling customer issues.
Maintenance: Maintaining an e-tailing website can be expensive, especially when dealing with large volumes regularly. However, this disadvantage doesn’t exist with platforms like Trade in Tech. Trade in Tech allows anyone to buy and sell electronics on its ecommerce platform.
Distribution channels: Dealing with wholesalers can be challenging since many may be fraudulent or offer inferior quality. And since you are not available physically to inspect the goods, you only have the word of the wholesaler to rely on. Trade in Tech solves this problem by vetting all the companies that list their tech products for sale on its platform. As such, you can verify a company by simply sending an email to the customer support team.
Customer issues: You need a reliable customer channel to handle a customer complaint. If you are setting up the platform on your own, this becomes an added cost. If you are using a platform like Trade in Tech, you can use the platform support team to handle issues as they arise. The support team works worldwide to ensure you consistently grow your business.
Retailer vs. Wholesaler: Who Gets the Best Profit for Electronic Retailing
The electronics industry is massive and can accommodate an unlimited number of retailers and consumers. When it comes to electronic retailing, you can choose to be a wholesaler or retailer. However, the market dynamics require all parties to adopt different strategies.
Customers want the best savings when they buy the latest tech on the market, such as smartphones and laptops. Retailers and wholesalers need to keep their supply costs low and their pricing competitive to make profitable sales.
When it comes to trading electronics, there is no real advantage over being an electronics wholesaler or electronics reseller since keeping supply costs low, pricing competitive and selling inventory as fast as possible applies to retailers and wholesalers.
Here are some guides to help you in electronic retailing regardless of whether you are an electronic retailer or wholesaler
Research
Before trading in tech products, you must ask yourself the right questions. These questions include:
Is there a demand for my profit, or do I have to build demand for them?
Do I have a direct link with a manufacturer or reliable wholesale electronics supplier?
Can I handle production volume?
Do I want to sell directly to consumers or resellers?
Your answers to these questions will give you the first foundation to set up your electronic retailing business.
Profit taking
One general maxim that applies to all businesses, either within or outside the electronic industry, is keeping costs low while keeping profits high. To do this, you need to understand the essential workings of the market. Some of the things to take note of are:
The profit margin when you sell directly to consumers vs. selling to retailers
The cost of warehousing the goods either as a wholesaler or reseller
The cost of packaging, shipping, commissions, marketing and wholesale supply
Other fees that can eat into your profit before you calculate your net gain
A platform like Trade in Tech can help boost your profit since the platform allows zero-fee buying and selling and allows you to negotiate with buyers and sellers for competitive prices.
Distribution channel
The deal breaker for many online transactions is delivery. Ensuring your products get to their destination at the right time and in good condition will help you build trust and gain more customers. It would help if you determined the following:
The best channels to ship your profits
If the cost of delivery will be on you or the buyer
Incentives such as return periods if the buyer doesn’t like the product or finds defective parts.
Platform
Once you have sorted all these out, it is time to launch your online electronics retailing business. The simple and intelligent approach is to sign up on Trade in Tech. The platform is a global marketing place that connects buyers and sellers worldwide. You can get the best electronic goods in good condition at highly competitive prices. Alternatively, you can use other platforms, but many of these platforms charge steep fees that can eat into your profit. Another option is to set up a commerce platform, which is only ideal for large ecommerce brands.
The Trade-in-Tech Advantage
Trade in Tech is one of the many trading platforms you can use to connect with buyers and sellers worldwide. The website offers a vast collection of tech gadgets such as android phones, iPhones, iPods, tablets, laptops, and much more.
Here are some key features that make the platform stand out from other platforms and an excellent choice for electronic retailing.
Fraud free: Trade in Tech takes the safety of its users seriously. Their in-house team monitors the platform 24/7 to eliminate fraudulent activities. If you doubt a supplier or company, you can contact the team anytime for verification.
Competitive prices: Trade-in Tech allows users to connect directly with other members to get the best wholesale pricing on used smartphones, tablets, computers, and other high-demand electronics.
Global reach: The platform has members from around the world, including Hong Kong, Dubai, the United States, the United Kingdom and South America.
24/7 support: If you run into issues, need clarification or want to verify a company, you can do all of that by contacting the helpful customer support team.