Electronics have become an essential part of our lives and we use them for most of the things we do. We have come to a point where if we don’t possess any electronics, we will not be able to get a job, to relax, to keep in touch with family.
Everybody needs electronics and the demand for them has made it possible for many individuals to be able to make money off of them, not only big companies.
Here we will discuss the different ways on how to sell electronics online in 2020, the modern age.
3 Great Ways To Sell Electronics
I know that only three ways to sell your electronics online isn’t a very big selection BUT prepare yourself to the amount of ideas, platforms and tips that will follow in the next few paragraphs.
These are listed from my least favorite way of selling to my most favorite.
If you own the products or are thinking of personally keeping stock of your electronics, then selling online on marketplaces is a very good idea.
By marketplaces, I mean websites like Amazon and eBay. These are giant marketplaces and are certainly the two that are dominating the online world right now.
However, they aren’t the only marketplaces around. You can use Best Buy, Rakuten, eCrater, Craigslist and Bonanza.
Depending on the marketplace of your choosing, you may be charged a small listing fee to showcase your products on their platform and upon selling an item, a small percentage of your total sales amount will be deducted to go towards the company.
You might tell me that the other small marketplaces are not worth considering because eBay and Amazon are THE online marketplaces of choice for the buyer.
To some extent, you are right. When you sell on Amazon or eBay, you have the companies’ names to back you up. You have their platform and their customer base.
However, these marketplaces have become very saturated and that comes with problems for the new seller.
Firstly, on a marketplace as huge as Amazon or eBay, due to the number of sellers selling the same items, it has become very difficult to rank on their first page, even if targeting exact search words.
This can make it difficult for new sellers to get their items shown to prospective buyers.
As a new seller, you don’t have any feedback score. So buyers, wanting to reduce chances of any kind of complication with their electronics, will choose to buy from another more established seller, with better ratings, and there are so many of them!
LOW PROFIT MARGINS
This brings us to the solution, where new sellers will try to attract buyers by reducing their prices. If the price is an important factor to the buyer, then they might not mind that the new seller does not have any reviews, which is the case with MANY buyers.
The problem that this brings, is that it goes on it circles; let’s take a camera, for example. Your competitor is selling a camera for $300, which is the lowest price. As a new seller (selling the same camera), you want to attract buyers so you price it at $289, which then becomes the new lowest price.
The week after, another person selling the same camera sees your lowest price and prices his own camera for $279, and that becomes the lowest price.
It becomes a constant battle between sellers because the prices are driven down so much. Yes, lowering the price will bring customers but it will also eat out of your profits. This cycle has become so bad that some sellers are even accepting to lose money for a few months until they can get better ratings.
Taking the example of the camera, let’s say you paid $240 wholesale for it and the lowest price for that same camera is $225 from another new seller. How far would you be willing to drop the price to get that sale?
Sales are made for profits, not for losses.
This is where…
… the other marketplaces come in. The sales will not be as many as on eBay or Amazon, but if you are selling on those giant platforms and plan a few losses for your products, the other marketplaces will bring in a few sales to cover your losses.
The next alternative, called dropshipping, is the way to go if you don’t want to keep any stock. This is where you showcase products from suppliers on your very own website and when you get an order, you just notify the supplier and the supplier ships the product to your customer.
As you can see, this method is great if you don’t want to personally deal with packing and shipping of the products to your customers. It has become a new way for people to open their own online store and to create their own brand.
Now you may ask why dropshipping cannot be used with either Amazon or the other marketplaces, and the reason is the delay that these marketplaces give you to mark the item as shipped and to add a tracking number to the order.
Most suppliers that accommodate dropshipping will ship the item within 7 days and it often costs extra for tracking.
Yes, it may take longer to get customers with your very own website because people do not trust you yet and you do need to provide customer service directly to your customers, but there are a few advantages to dropshipping, compared to selling on marketplaces.
1. No listing or sales fees. You only have to pay for hosting your website and for your own domain name, which both combined, could be as low as $20 for a year, depending on the host. The rest is your profit!
2. Customers cannot easily compare your prices to your competitor’s prices, allowing for you to put your price on the item and will result in more sales.
3. More stable over a long period of time because you are not dependent on what your competitors are doing. You are also not dependent on another company’s traffic. Over time, you will generate your own traffic and loyal customer base.
4. You are not bound by another company’s terms and conditions. You make your own.
5. As mentioned above, you don’t need to keep any stock of your products, so you don’t need to pay for storage.
6. You do not need to buy a big number of items wholesale and risk not selling them.
Starting an ecommerce store can be a daunting task and if you are a beginner, you need the proper guidance to do things properly.
I suggest that you check out Shopify, a company that will help you build your online store, help you market to potential clients via social media and a customer service team that is just amazing.
It uses an app called Oberlo to help you connect your suppliers’ products to your store, which makes it a breeze to use.
You only need to showcase a product, just like on the marketplaces and dropshipping, in the form of a review for your electronics on your website and discussing their features with your readers.
You include a special link provided to you (by the company you are affiliated with) in the content of your website and when the reader buys a product through your link, you receive a commission.
Many online marketplaces, such as Amazon and eBay and other well-known ecommerce stores have affiliate programs. You only need to join them as an affiliate and once approved, you can start pasting your special link into your website.
This requires for your website to get ranked into Google and other search engines and it requires patience and some hard work on your part to learn about the process.
The advantages of selling through affiliate marketing are everything included with dropshipping, plus you don’t need to take care of customer service.
This is a much better way to sell your items because it gives you the opportunity to not only make sales, but to also incur recurring / passive revenue.
If you are a newbie and don’t know anything about affiliate marketing, then I can show you how it’s done because I myself earn money doing affiliate marketing and it really works!
Take a look at the kind of money I make every month, only working part-time!