Flipping phones, or buying used phones at a low price and selling them for a profit, is becoming an increasingly popular way to make money. With the constant release of new phone models, many people are willing to sell or trade-in their old phones for a lower price, providing an opportunity for phone flippers to make a profit. In addition, the high demand for phones and the growth in online marketplaces has made it easier than ever to buy and sell phones.
While phone flipping can be a profitable business, it requires some knowledge and effort to be successful. This article will provide a step-by-step guide on how to make money flipping phones. Whether you're looking for a side hustle or a full-time business, this guide will help you navigate the process of buying and selling phones for profit. From finding reliable phone suppliers to advertising and completing a sale, we'll cover everything you need to know to be a successful phone flipper.
Where to Find Phones to Flip
The first step in phone flipping is to find a reliable source for buying phones. There are a number of options for sourcing phones, and we’ll go over the most popular here.
The Original Manufacturer
One way you can source these phones is by getting them straight from the manufacturer. Taking Apple as an example, you can buy used phones at a wholesale rate from them directly if you are an official licensed seller. This requires a substantial amount of capital and Apple has their own requirements which are not easy to meet. Other brands have lesser requirements, though will still require large orders, and will come with restrictions on how you can sell them.
Sourcing from the original manufacturer is not really possible for most startups and small businesses.
Facebook Marketplace is an excellent platform to find used phones at affordable prices due to its massive user base. In addition to the Marketplace, Facebook also offers rummage sale groups where users can find local sales happening in their area. These sales often provide great deals on old phones that can be fixed and sold for a profit.
Craigslist
Craigslist is a popular online classifieds platform with a large user base. Craigslist allows you to search for phones in your local area, which can be helpful for finding deals and minimizing shipping costs. You can also meet the seller in person to inspect the phone before purchasing it.
Sellers on Craigslist often list their items at a higher price than they expect to receive, leaving room for negotiation. This means you may be able to haggle with the seller to get a better price on the phone. However, it's important to exercise caution when using Craigslist, as scams and fraudulent sellers can be a risk. Make sure to take appropriate safety measures, such as meeting in a public place and inspecting the phone before purchasing it.
Used Phone Stores
If you find stores in your area that sell used items/goods, you can check them out for possible deals on phones. These stores can be:
- Thrift stores
- Used Electronic Stores
- Pawn Shops
The catch to browsing these stores is that the majority of the time, the salesperson is aware of the market value so unless bargaining is an option, your chances of buying low and selling high are small.
You can also check out places with kiosk sellers or street vendors selling electronics. Bargaining tends to be possible at these locations and you can find lower prices due to them setting up near their competition. The best places to find these stalls are:
- Flea Markets
- Fairs
- Bazaars
- Community Markets
Set Up Your Own Phone Recycling Bins
You also have the option of setting up your own phone recycling bins.
Find a suitable location to place your phone recycling bins. This could be a public space such as a shopping center or community center, or a private space such as a school or office building.
Get permission from the owner or manager of the location to place your phone recycling bins. Make sure to discuss the details of the arrangement, such as how often the bins will be emptied and who will be responsible for maintaining them.
Advertise your phone recycling bins to encourage people to use them. You can use social media, flyers, and posters to promote your recycling program.
Regularly check and empty the phone recycling bins, and sort the phones by brand, model, and condition. This will help you identify which phones can be fixed and resold, and which ones can be used for parts. Fix any phones that are salvageable and resell them for profit. Alternatively, sell the parts of the phones that cannot be fixed. For those phones that you cannot repair, or get any useful parts from, simply recycle them yourself - some phone companies recycle phones for free, you just need to check out which companies will do that in your area.
Buy Wholesale
Online wholesale marketplaces are platforms where resellers can purchase bulk quantities of goods. Although these marketplaces facilitate matching up buyers and sellers of wholesale merchandise, the terms and types of sellers and products will vary.
To source wholesale cell phones, it is advisable to choose a marketplace that specializes in selling wholesale electronics instead of a general wholesaler.
When working with a supplier things to watch out for include:
- Wide range of popular phone models with prices below retail
- Ability to negotiate prices
- low minimum order quantities
- affordable shipping options
- discounts on large volume orders
- warranties on all goods
- good reputation with past customers
- clear refunds policy
- verifiable physical address.
Sourcing Phones from goWholesale
Are you looking for a reliable wholesale supplier of new and refurbished cell phones?
goWholesale offers a comprehensive range of phones from all major manufacturers. All phones come complete with a warranty. Our system allows you to be instantly matched with a seller or you can submit an offer to get the price you need.
Consider Flipping Refurbished Phones
Refurbished cell phones undergo a rigorous testing and grading process to ensure they meet the manufacturer’s original standards. Refurbished phones will come at a price point significantly below the original retail price and can be a great opportunity that not all flippers consider.
The advantage of flipping refurbished phones over used phones is that you have a guarantee that the item has been tested and is completely functional. While you might pay more than you would buying a “used” phone, you can save both time and money since a refurbished phone is already in a saleable condition. There won’t be any need for repairs, repackaging, re-accessorizing or data wiping the units.
Handling Damaged Phones
When buying used phones to flip, you will encounter damaged phones in need of repair. Sometimes a simple screen swap or battery replacement may be all that is needed which can be performed without the need of special training. With that said, knowing how to make some simple repairs on Android phones and iPhones can be a huge benefit to you and increase your profit potential substantially.
Pro Tips:
- Learn how to fix cracked screens. This requires some simple tools and a replacement screen, all this you can purchase for low prices.
- Know how to test the speakers and microphone. These parts can be easy or hard to replace depending on the phone brand and model. Testing for good speakers and microphones are essential for determining how much you can profit on the phone.
- Know how to check if the phone is factory unlocked. Often people buy phones straight from their cellular provider and these phones are very commonly locked to that specific service provider, which also makes these phones cheaper. To then unlock the phone to a factory unlocked state will increase the resale value.
- Learn how to verify if the battery is good. This is important for older iPhone models in particular that have the infamy of reduced battery endurance over time. For Android phones the process is similar to that of iPhones. You will need to replace batteries that have significantly reduced performance.
- Always check the IMEI. This is critical because stolen phones will not activate with a phone service provider making your investment potentially worthless.
How to Identify a Good Deal
While iPhones and Samsung phones may have well known resale values, you may come across smartphones from different brands that you don’t know the resale value of. In such cases, you need tools and methods to determine if it's worth it to buy a phone, whether broken, damaged, or just used.
- Learn to calculate the resale value. Before looking at a phone, you need to factor in the age, external damage, and internal damage such as a broken microphone, sd card slot, and SIM recognition issues.
- Check multiple platforms for market value. This is important not only for resale pricing, but also for purchasing value. Sellers can perform searches on online buyback sites such as bankmycell and sellcell to have an idea of how much their phone is currently worth.
- Know your local market. While the internet is a great tool to get an idea of a phone's market value, your local area will have a completely different “street value” for smartphones. You can make great deals by buying phones locally and selling them online for a profit. This will take some hustling and salesmanship on your part.
Conclusions
Phone flipping can be a lucrative side hustle or full-time business if done correctly. By researching and buying phones at a low price, repairing and refurbishing them, determining their value accurately, and selling them for a profit, you can create a sustainable business.
It's important to remember that scaling your business takes time and effort, and it's crucial to reinvest your profits wisely to grow your inventory and expand your customer base. As with any business, there may be challenges along the way, such as competition or changes in the market demand for certain phone models. However, with persistence, flexibility, and a willingness to learn, you can overcome these obstacles and become a successful phone flipper.
Shop new and refurbished smartphones at wholesale prices right now at goWholesale.