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Sell Electronics Online In Your Micro Business And STILL Make Good Money

by Sean Mal

in Selling, Sourcing

sell-electronics-online

Why does the title say “STILL” make good money? The tone of this sentence is like it’s unlikely to be successful selling electronics online in a very small business.

The tone of the sentence is reflecting the myth about selling electronics online.

What’s the myth?

Many online selling coaches and pros caution small online sellers about selling consumer electronics online and advise them to leave it to the “big guys”.

That’s a myth and I have the proof.

Their reason is that you need a huge budget and a lot of resources to be successful in electronics sales.

In this post I’m talking to small or very small business owners. You’re not going to build a big business like Newegg or Fry’s. You just need to make decent money.

Let me tell you this: you absolutely CAN make decent money by selling electronics on the web!

To show you it’s possible to sell a lot of electronics online in a miniscule business, I show you my tax report from PayPal. They sent me this tax report showing I had received almost half a million dollars in 2011!!

That’s only PayPal payments. I also use Amazon and Google Checkout and received cash for selling offline (such as craigslist listings).

I didn’t have a huge budget. I started with probably $10-15k worth of inventory and I constantly replenished my inventory once I sold enough to have more cash for buying so my inventory turnover was somewhat high.

So go ahead and bust this myth for yourself. There are other reasons why selling electronics online is good. So if you really want to tap into this huge market, here are some rules of the game. Let’s get into details:

  • Always be on the look out for deals: You can acquire a lot of consumer electronics to flip if you watch out for deals either online or offline. I suggest take full advantage of slickdeals, dealnews, wiialerts, and other deal aggregators to find fantastic deals in different categories including electronics.
    Offline venues like local stores and craigslist are another ways to obtain electronics new and used for flipping. Many people think of craigslist as a source of used items only but that’s not true. There are hundreds of brand new electronic items at great prices on craigslist.
    I have bought new electronic stuff from people via craigslist at prices good enough for reselling.
    eBay is a good source too. Last year there was a great deal on eBay Daily Deals for Canon 7D and 5D DSLR cameras. I bought and flipped them on Amazon and eCrater. They sold like hot cakes and I regretted why I didn’t sell them at a higher price. Laughing
    You can also subscribe to my newsletter as I send updates about ways to buy electronic products at good prices. Also you can read more about sourcing items to sell.
  • Accept international shipping: As I have mentioned before, international shipping can increase your revenue largely. It also will help increasing your inventory turn over. Don’t overlook the importance of stock turnover. You must be able to buy, sell, and “rinse and repeat” somewhat rapidly.
  • Be prepared for chargebacks: The number of fraudulent buyers is on the rise unfortunately and they target shiny electronics more than other items. However, you shouldn’t be too worried about it. Just follow my advice on how to minimize chargebacks.
    Chargebacks are #1 reason why PayPal put some kind of reserve on your account. It could be $1,000 permanent reserve alone or together with a percentage of every sale held in your account for a number of days (usually 30-120 days). Another reason for paypal reserves is that you already shipped items with chargebacks so paypal have to lose on that so it increases your risk in their eyes.
    Once you receive paypal notification about chargeback or suspicious activity and you haven’t shipped the item, you can still ship the item and give them the tracking number; don’t!! This way you increase your account risk factor and they are likely to put reserve on your account or increase your reserve.
  • Price the products competitively: Research the price of the electronic products you sell and price them competitively. You need to do the research BEFORE you buy of course but electronic items prices fluctuate greatly so you need to frequently assess your listing position price-wise between similar listings and revise accordingly. Pricing your products competitively helps move your inventory and generate profit.

Let’s hear from you

Do you sell electronics online? What’s your working strategy to maximize profits? What’s your biggest challenge now? Please do share.

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{ 4 comments… read them below or add one }

kerja sambilan June 7, 2012

Nice sharing! I do enjoy eBay and Amazon as well!

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Sean Mal June 7, 2012

No problem. Do you sell online?
Sean Mal recently posted..5 Tips To Minimize Item Return And Handle Returns CorrectlyMy Profile

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India July 4, 2012

A very nice article,thanks for sharing.

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Sean Mal July 4, 2012

Thanks for commenting but I like comments discussing what was said in the article you’re commenting about.
Sean Mal recently posted..15 Online Wholesalers To Acquire Stuff To Sell OnlineMy Profile

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