Become An Effective Cell Phone Wholesaler Through Inventory Software


Wholesalers are important partners in the distribution of any good. They are not only good for consumers because of the easier availability of these phones, but also for businesses because they can outsource their distribution. The cell phone business includes not only the phones but related equipment and accessories as well. Hence, it allows some space to wholesalers for cross-selling as well to increase their margins.

The Industry

According to Statista, the global annual cell phone shipments have reached around 1.4 billion units. Close to 80% of all smartphones that were shipped operated on Google’s Android operating system. For 2018, the global smartphone sales reached a whopping $522 billion, this would mean that on average the price of a device is around $373.

How Does Cell Phone Wholesaling Work?

Wholesaling can either be done on phones received directly from OEMs (Original Equipment Manufacturers) or by importing from suppliers. Distributing for a company can require special certification and compliance through a distribution license, whereas, importing phones in bulk might not require stringent certifications.

Because wholesalers buy in bulk, they operate on little margin which is usually around 5-7%. However, retailers can earn upwards because they buy relatively little quantities. Some suppliers also sell carrier unlocked phones. Or, they can also provide phones that require some degree of repair, these phones are imported in bulk and repaired before they can be sold forward.

Multi-Channel Retailing

Now, wholesalers also operate on a multi-channel model, having a presence on a brick-and-mortar store as well as online platforms like Amazon, eBay, and Walmart. With current platforms, there is sufficient demand available in the market, what’s left for wholesalers is to optimize their current processes to satisfy customers.

Who Is A Good Wholesaler?

A good wholesaler or retailer needs to handle the two most important things: good relationships with suppliers/customers and managing inventory effectively. Having pleasant terms with the suppliers and customers can make things easier because of flexibility in delivery and payments.

More so, an efficient inventory management system is the most important aspect of a successful wholesale/retail business. Hence, it only makes sense to invest heavily in a robust inventory control mechanism.




How To Manage Inventory Efficiently

Too much inventory can tie up your capital on stock which will hurt your liquidity. And too little inventory may make it difficult to keep customers happy due to the inability to meet demand. There needs to be a perfect balance and for that, a small business will need to take the following measures:

Track Inventory In Real-Time

You need to constantly know how much stock is available in your warehouse. That too, in real-time because when sales occur or purchases happen, they need to be updated quickly so that there is no mismatch. This can be done by synchronizing inventories using the IMEI codes labeled on phones.

Forecast Demand

Communicate with your customers and sense the demand in the market. Know exactly which phone model or maker targets which segment within a market. Some refurbished phones cell better than others, it is important to constantly assess the market and what the consumers are discussing.

Use Barcode Scanning

Barcodes are a great way to label and track your products. They can help you to handle order fulfillment because manual data is eliminated and entries can be made just by scanning the labels on each item. Errors are minimized and you will never have to face the embarrassment of charging a different price or sending the wrong product.

Categorize Stock

Divide your available stock into categories or condition levels so that they can be easily managed. This can be according to your processes, as an example, it could be categorized into different quality levels like A stock, Refurbished stock, or C stock.

Conclusion

The cell phone industry is growing, and cell phone wholesalers now have multiple platforms to grow their business. The main focus should now be on how managing inventory and maintaining good relationships with suppliers. Invest in an inventory management software than can leverage your core competencies and help you fulfill orders effectively.

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