How To Start A Phone Flipping Business?

What is a phone flipping business?

A phone flipping business is about purchasing used phones at a low price and selling them at a high cost to earn a significant profit. This is a type of business that can turn into either a lucrative side hustle or full-time work. This business has the potential to get started with immediate effect only if you know that you are working with the right product.
Moreover, this venture is more convenient and accessible to do than other flipping businesses. You can manage to earn a profit of $100 to $250+ per phone sale.
In this business, you first need to find a phone at a low market value in good condition. If you can repair some minor issues, then it’s a plus point. After finding the right phone, you can sell it- either on online marketplaces, social media groups, or directly to the buyer. The choice is yours.
Like every other business, it also has some red flags to be careful with to avoid loss down the road. But you don’t need to worry at all. In this guide, we will share with you everything you need to know for starting your new venture.

Why start a phone-flipping business?

If you wonder why start a phone flipping business? Then keep reading to get all the plausible reasons to kick-start this business.
First, phones are one of those electronic devices that do not go out of trend. They are always in demand. And people keep looking for smartphones available within their budget. Due to its demand, it mitigates the concern that it might not be turned into a full-fledged business.
Secondly, this business has a huge potential to earn significant money. All you need to do is invest some time in finding the right phone at a wholesale rate that can bring you good fortune in the end. Moreover, just with a minimum inventory you can earn a significant profit.
Thirdly, to kick-start this business, you do not need any particular skill or degree or do any course. You only need to do market research. Like every other business, it also works on-trend. For example, iPhones are more in-demand smartphones as compared to others. They are easy to buy at low market prices and sell at higher prices to yield a good profit.
Fourthly, you do not need a huge inventory to start this business. If you want to start it as a side hustle, then with a few hundred dollars you’re good to go. For example, if you purchase an iPhone for $150 and sell it for $250, then you can earn $100 a profit. It is quite an enticing deal of earning a maximum profit on every phone you sell.
Last but not least, for the initial setup, you do not need any physical store or space. You can start this business online. For this purpose, either you can create a website or use social media platforms. It depends on which suits you best.
Moreover, the following market analysis would be enough to motivate you to give this business a shot.

Phone flipping business Market Analysis

Global market size: 50 billion USD in 2021 and will reach approximately 144 billion USD by 2031
Projected Annual Growth Rate: 15%

Source: https://www.statista.com/statistics/1208598/used-smartphone-shipments-worldwide/

Start a phone flipping business in these 8 steps

1. Creating a phone-flipping business plan
2. Where to find the phones to flip for the phone-flipping business
3. Important checklist before closing the deal in phone-flipping business
4. Platforms for selling phones for the phone-flipping business
5. Grow your phone-flipping Business: Helpful Tips
6. Create an online phone-flipping business presence
7. Getting leads & calls for your phone-flipping business
8. Get to know your phone flipping business, research local competition

1. Creating a phone-flipping business plan

A business plan is essential for the success of a business. Even if you’re planning to start a new venture as a side hustle- who knows that side hustle could turn into a full-fledged business? In the long run, a business plan will ensure the smooth operation of the venture.
Moreover, a business plan serves as a blueprint for the business which enables to develop the strategic tools to achieve short-term and long-term objectives.

Essentials of what a phone flipping business plan contains are:

• Executive summary of the overall business
• General description of the business
• Introduction
• Organizational structure
• Market research and competitor analysis
• Description of your products and/or services
• How do you plan to market and sell your products
• Financial projections and funding plans
•  Sales & Marketing Strategies
• Roadmap for your business
• Projected growth based on your business plan
• Appendix

What Are the Costs involved in opening a phone flipping business?

The cost of starting the phone flipping business depends on you. It can range from a few dollars to hundred dollars. You can start this business as per your budget. If you want to start it as a side hustle, then $50 to $100 would be enough depending on the phone model and specifications.

How much profit can a phone-flipping business make?

The profit ratio highly depends on the purchasing price of the phone. In this business, the goal is to purchase a phone at a low market rate. Then, you have to sell it at a higher rate- to keep a profit margin of at least 50-100%. You can add 50-100% markup.
For example, if you want to purchase an iPhone 8 plus- 64 Gb, space gray, unlocked, you have the following options to purchase with the same specifications.

Model & Specifications	Available	Price
iPhone 8plus(64Gb, space gray, unlocked)	Amazon	$155
iPhone 8plus(64Gb, space gray, unlocked)	eBay	$184
iPhone 8plus(64Gb, space gray, unlocked)	Craigslist	$220

From the above price comparison, you can get an idea of where you should purchase. You can even strike a good deal with market research. Even if you purchase from Amazon for $155 and add a markup of 100%, then you can sell it for at least $255 on eBay or any other marketplace.

Disclaimer: The above-mentioned prices are subject to fluctuation. These are for mere estimation. It is recommended to conduct your market research.

Formula to calculate profit margin

Profit = selling price – cost price
255 – 155 = 100
Profit percentage = Profit/ cost price x 100
= 100/155 x 100
= 41%

How can you make your phone flipping business more profitable?

You can make your phone flipping business more profitable by repairing cracked screens or minor faults. If you purchase a phone with a cracked screen, you will get it at a lower price. Knowing how to repair the cracked screen will bring you a good profit. You can even learn minor repairing from YouTube as well.
Another way to earn more profit is market research. Make sure you do your research in person and online as well to get the best price quote.
Additionally, you can earn more profit by selling iPhones as compared to androids. As iPhones are easily available to purchase and sell. And they are always in demand.

What Will you name your business?

Starting a business without a name is like living in a world without an identity. A name is an essential element in starting a business. Even if you plan to start it online, you will still be going to need a name to stay in the market.
If you wonder what should be the name, don’t worry. You can find a suitable name through online research. You can find many name generators online websites. Moreover, you can ask your friends and family for suggestions as well. Remember, the name should be unique and original.

2. Where to find the phones to flip for the phone-flipping business?

There are various ways you can find used phones at reasonable prices. Following are some sources where you can find phones to flip.

Amazon

Amazon is not only the largest online retailer to purchase products but also the most secure one. It ensures the reliability and quality of the products. So, it is a good idea to purchase refurbished phones from Amazon. Before making your purchase, make sure to set your budget, and search for the relevant model on other online marketplaces.

Benefits of using Amazon to find a phone for flip

The first and foremost important benefit of using Amazon is that you can connect your Discover it Credit Card with your account. On your every purchase, you can redeem a discount. If you don’t have any idea about Discover it Credit Card, click here to learn more about it.
Another benefit of using Amazon for your purchase is that it provides protection for the buyer. To ensure quality customer care services, buyers can file an “A-to-Z Guarantee Protection claim” if they never receive the phone they ordered or if it malfunctions. With this simple process, you will get a complete refund of your amount.

Craigslist

Craigslist is known for providing the best deals. Also, you can easily find refurbished and used phones at lower market prices. All you have to do is put up an ad for your required model along with specifications, then a potential seller contacts you. Don’t let the higher prices bother you. With your good negotiation skills, the seller can agree to further reduction as well.
Moreover, a seller can also reduce further if you have cash in hand. As most sellers might prefer to get instant cash than months wait.
Additionally, you can check the local listings of the phones and strike a deal.
Remember, unlike Amazon, Craigslist doesn’t provide any protection for the buyer. So, you will have to buy at your own risk.

Facebook marketplace & groups

Facebook is now more than just connecting with people. With its number of features, the most remarkable one is Marketplace. In the Facebook Marketplace, you can easily find used phones either in your nearby region or in other cities.
Moreover, you can join groups or follow pages that deal with used or refurbished phones. You can post in those groups about the phone- you’re looking for along with the specifications.

Other online sites to find phones for flip

There are many online marketplaces where you can find phones, one of which is eBay. Although, the sellers on eBay know the actual prices of the phones which causes a low-profit margin.
Flipsy local is another online site where you can get a better deal. All you need is to create a custom offer that is sent to the local sellers. For same-day cash, many people may accept fairly low offers.

Other online websites include

1. Trade-In Tech
2. Letgo
3. Up trade
4. Gazelle

Local electronics shops

One of the authentic ways to get a hand on a used phone is to visit any local electronics or phone shop. It is better to check everything on your own than to trust someone’s words. Also, you can strike a better negotiation deal by face than online.

3. Important checklist before closing the deal in phone-flipping business

For the safer side, it is important to go through the checklist before closing the deal. Here’s the guide to a checklist that can save you from possible trouble and scam.

Check IMEI and ESN number

Do not forget to check the IMEI and ESN numbers of the phone, as they provide all the necessary information. These numbers ensure that you aren’t buying any blacklisted phones. Blacklisted phones are typically either stolen, lost, or the phones with unpaid bills.

Check phone condition

Thoroughly check the phone condition and asked for clear images. For example, if you’re purchasing an iPhone, then ask the seller to send either picture or video of all four corners. Because mostly the corners are damaged. Ask for all the possible scratches and faults in the phone. Because even a minor fault may cost you good fortune in the future.

Check phone storage and color

Checking phone storage and color is important, as it will increase your profit margin. Normally, people prefer to buy a higher storage phone and specific color. So, make sure you are purchasing the right color with desirable storage.

Check for Jailbroke device

Do not fall for the jailbroken phones even if you’re getting them at the lowest-market prices. Ask the seller if it’s jailbroken or not. Then think to close a deal.

4. Platforms for selling phones for the phone-flipping business

Following are the platforms that you can use to flip your phones.

Craigslist

You can earn a significant profit by selling phones on Craigslist. It takes only 15 minutes to upload all the necessary details regarding the product. What makes it a good option is that, unlike other online platforms, it doesn’t charge any fee to the seller.

Gazelle

Gazelle is the best option to sell on if you need immediate cash. You just need to send all the necessary details of your phone and then they will send you a price quote. If you want to learn more about the process, click here.

Social media platforms

Social media platforms including Facebook and Instagram are remarkable places to sell your phone. You can join Facebook groups, and create ads or a page to advertise your phone. Moreover, you can advertise your phone on Facebook Marketplace as well to flip.
Similarly, you can create ads on Instagram to flip phones. Also, you can create a blog dedicated to your phone flip services.

On your website

Creating your SEO website and publishing your products to flip is another good idea. But for this, you need to have bulk items. Because if you want to sell only one or two phones, consider selling them on the above-mentioned platforms.

5. Grow your phone flipping Business: Helpful Tips

You can grow your phone flipping business:

• By only buying the phones that can be readily sold. Especially, if you think you can sell at a good profit margin.
• By purchasing phones in bulk to get a further discount. This way you will get ample room for profit margin.
• By checking the updated and recent listings of the phone prices as per the specifications and conditions. Use Swappa to find recent price listings.
• By researching the market to find the demanded color at a reasonable price- like in the iPhone case- most demanded colors are black, golden, or silver.
• By finding and identifying a good deal. You can identify a good deal by comparing the prices of the same phone. You can check price comparisons on Flipsy.

6. Create an online phone-flipping business presence

In the modern era, all businesses, either big or small, have an online presence. Due to online business mode, people find it convenient to shop for their desired products. Moreover, creating a website for your business gives authenticity to the customers.
Additionally, an SEO-optimized website can attract more customers. For the best website operation, you will need web hosting. Bluehost is recommended for web hosting because of its remarkable features. Its support base is available 24/7 irrespective of time zone. Bluehost is a trustable hosting provider- kudos to its responsive customer service, high uptime, and cost-effective beginner plans.

Create a social media account

Social media plays an important role in expanding the business. It also increases customer reach and boosts their interest. You can use the following platforms for the growth of your phone-flipping business

• Facebook
• Instagram
• Twitter
• LinkedIn

7. Getting leads & calls for your phone-flipping business

You can get leads & calls for your phone-flipping business in the following way:

• Add a “get quote” button in your ads
• Add an automatic message in your social media handle addressing your services and availability
• Provide the best customer services and get more customers by word of mouth
• Use either google voice or a virtual business number to get calls
• Network with other businesses like electronic shops or online sites to get more customer reach

8. Get to know your phone flipping business, research local competition

Education on Your phone flipping Business is key, learn the market and trends

Learning the market trend will ensure the success and smooth operation of your phone flipping business. As this business solely deals with the right knowledge of phones that can bring you a remarkable profit margin.

Getting to know your local area and competitors

Knowing your local market and your competitors help you make better decisions about how to run your new venture. By evaluating competitors, you can determine the product’s price. Understanding your local market will help you choose the right products for your business.

Seasonal Vs Year-Long Business- What’s Right for Your Phone flipping Business?

The phone flipping business provides the opportunity either to run it as a seasonal or as a year-long- depending on which suits you best. The best time to do this business is either before or after the new iPhone launch. Because at that time, most people prefer to sell their old iPhones to get a new ones. Likewise, some people prefer to get the previous models- as the new one would be expensive.

Success stories of running the phone-flipping business

David Becerra

He is the owner of Zelphone company. He started his journey by buying phones from Craiglist and flipping them on eBay. And he is currently earning $500000 per month. His strategy for success was purchasing 10–20 devices at once rather than just one or two phones.

Brian Meggs

He is a finance expert and a founder of My Millennial Guide. He earned $14000/year by flipping iPhones. Used Amazon to buy iPhones and sold them on Craiglist and Gazelle. With his proficient knowledge of the iPhone, he looked for better deals to earn profits. Moreover, his repairing skills also helped him to earn a significant profit.

Jeff Duhon

He is a member of the Smart Flippers Facebook group. He earns $1000/week by flipping phones. And his strategy for buying the phones includes; buying from the Facebook marketplace, Facebook, and Instagram ads.

Tips for Your Phone-Flipping Business Success

• Do not pile up the phones while waiting for 100% profit
• Always stay on top of your business and do not lose focus
• Prefer to deal only with the cash
• Stay friendly yet make clear to your customer that your time is precious and the deal is final. So, no time for bargaining.
• For selling your phone, create brief headlines to define the product
• Be responsive to your customer queries
• Always buy popular brands of phones

Frequently Asked Phone Flipping Business Questions

1- How to reduce risk when buying phones for flipping?

When buying phones for flipping you can reduce risk by closing a deal in person. Choose a public place to meet and negotiate with the buyer for a better price quote. Furthermore, if buying online, choose the platform that provides protection for the buyer.

2- Which phones are easiest to flip?

Generally, the iPhone series are the best phones to buy as they can easily flip. Also, the Samsung Galaxy series can easily flip as well.

3- Should I purchase a phone with an AT&T carrier?

Only if you know how to unlock an AT&T carrier phone, you can purchase it. It also gives you ample room to earn profit. Because you can get an AT&T carrier phone at a reasonable price on Amazon or any other marketplace.