Purchasing computer items for reselling on online store?

MyersA
MyersA used Ask the Experts™
on
I'm assigning so many points to this question because we're doing a major face lift to our store, and we need to find suppliers.

We have a small online office furniture store that's not doing too well after an Office Max and Office Depot recently opened up. Therefore we want to try out something different and begin selling computer electronic items (ie. PCs/laptops, drives, phones, cameras, software, etc...).

Since we're so small it's hard for us to buy from those huge resellers, so we're thinking of purchasing from online retailers with low prices, like newegg, mwave, and tigerdirect.

My main concern with Tigerdirect is that their "Terms & Conditions" state that says that they won't sell to resellers like myself. Has anyone purchased from them and later resold?

Has anyone had any positive experience with the other two sites (newegg and mwave)?

What other online sites, besides those three mentioned, can I also use to purchase from?

Basically, on most items (especially big-ticket items), our work plan is to purchase an item when the item's purchased from us.

Any help is greatly appreciated.

Thanks.
Comment
Watch Question

Do more with

Expert Office
EXPERT OFFICE® is a registered trademark of EXPERTS EXCHANGE®
Commented:
I own a small computer repair business and currently buy all hardware and software from newegg and then resell the items. In my case as long as I am paying the sales tax it is fine. My suggestion is to contact a lawyer with business law experience or a CPA may also know these answers in a definite manner. Reselling is a different business than providing a service with selling the part but not by much. From my personal experience and small amount of business law studies I believe you can purchase from anywhere with the intention for resale but they are not obligated to sell without sales tax or reduce prices for bulk purchases.
Top Expert 2012
Commented:
I have had great customer service from newegg, and it's when you have to return an item that makes the separation between the great stores and everyone else.  Your can find some feedback on any online store that has ben around for a while using www.resellerratings.com.  I would also recommend www.directron.com, and I have had good experience with mwave also.  eBay is another source, but check their seller ratings before purchasing.

Author

Commented:
Thanks for the posts.

I noticed you guys didn't mention TigerDirect. How come? Their prices are usually as good (or better) as mwave and newegg. I've also searched other posts, and they don't mention tigerdirect either.

Also, do you guys have experience purchasing from real resellers (ie. Ingram, Techdata) ? Or do you only purchase from retailers with good prices?

Thanks again.
Success in ‘20 With a Profitable Pricing Strategy

Do you wonder if your IT business is truly profitable or if you should raise your prices? Learn how to calculate your overhead burden using our free interactive tool and use it to determine the right price for your IT services. Start calculating Now!

Top Expert 2012

Commented:
TigerDirect is okay for low-cost items, but when I want quality, I don't go to them.  Their systems tend to leave much to be desired, judging by what they put into them.  I stick with retailers with good prices and good ratings.

Commented:
A computer repair shop I worked at before I opened my own used Tiger direct and we seemed to have many issues with them when it came to quality or shipping. There prices were rarely lower than anyone else. As far as real resellers the ones I have seen in the past tend to want a certain amount of purchases from you monthly or some other form of minimum purchase agreement. We attempted to use one and they ended up calling us a few times a week, same with tiger direct.

Author

Commented:
From these stores (tigerdirect, mwave, newegg), I would be purchasing brand-name items such as laptops and desktops, USB hard drives, LCDs, etc... I don't believe quality would factor in here since these items are not manufactured by them.

Our electronics would be something similar to what a store like Wal-mart would carry: mainstream items anyone can purchase. But unless a client requests it, we won't be selling more specific components like CPUs, video cards, memory modules.

Unless I'm looking at it the wrong way, tigerdirect's laptop prices are very comparable to the prices of mwave and newegg. For example, I was looking for Lenovo laptops, and the cheapest laptop in tigerdirect is $429 while in newegg it's $479. Someone technically savvy would realize that one has a T3400 CPU while the other one has a T4200 CPU, but to most people that would be irrelevant.

Thanks.

Commented:
It may come down to shipping prices or if those prices factored sales tax. You are correct that buying new items wont may much of a difference in who you buy from.
Top Expert 2012

Commented:
I haven't had any experience dealing with returns and customer service from TigerDirect.  I have had plenty of experience with newegg, and all of it has been good.  You may be able to get the same products for the same price from TigerDirect, but the critical question is how do they respond when you have a problem?  You should try to find this out before committing to purchase from them.

Author

Commented:
Thanks for all your replies.

One final question... how do you guys deal with warranties and returns? Let's say Bob purchases a laptop. I buy it from newegg, and then I sell it to Bob, who bought it from me from the site. Bob then calls me that he wants to return it, or that there's something wrong with the item.

How do you guys deal with these situations where a customer returns an item? In the event where you would need to interact with your seller (newegg in this case), how do you process these cases?

Thanks again.
Top Expert 2012

Commented:
Technically, you are still the buyer, so as long as all the other conditions are met, you can act as the end user.

Commented:
It is your choice to give you own warranty or guarentee or not. Just be sure to give them the necessary information about the warranty because they will more than likely have to bring it back to you to send it back unless you purchased with a reseller account then it may have options for the end client to send in the product.

Commented:
Try signing up for worldwidebrands.com

You should find many resellers that are way cheaper than all the above.

Author

Commented:
Thanks for all the posts.

Regarding the warranties, do these companies (Sony, Acer, Lenovo, etc...) require a receipt when an item is returned?

For example, someone may purchase a laptop from wal-mart at a great price and then later resell it on ebay at a higher price. They're not a legit company so there's no "official" purchase receipt and they're not going to give the seller the original wal-mart receipt. So I would think these big manufacturer accept items without receipts.

Has anyone used worldwidebrands.com?

Again, thanks for the help.

Commented:
I have. It's harder to find big ticket items there, but you'll be able to find all accessories at great prices.

You will need to have a registered business name and tax number inorder to deal with some of the wholesalers.
 
A lot of them also offer drop shipping. I think that would be your best option. I know you said you didn't wanna pay for the items untill the buyer buys it. The profit margins are a lot smaller when you do that though, but you dont have to worry about shipping and customer service.

Author

Commented:
I looked at worldwidebrands.com. It has a membership fee of $300, and no money-back guarantee. It seems like a get-rich quick program.

What happens if they don't have what I need? Do I get my money back?
Commented:
I know for a fact that they are not a get-rich quick program. If you are serious about selling online, they make the road a little easier.

This is there refund policy:

REFUND POLICY

Purchaser agrees, as part of the consideration required to purchase this product, to carefully review and test this product during the refund period and to immediately request a refund if the product is not satisfactory. The request for a Refund must be made within sixty (60) days from the date of Purchase.

In the case where the Worldwide Brands Member has purchased on a recurring monthly payment basis, the sixty (60) day return period dates from the date of purchase. From day 61 onwards, no amounts received by Worldwide Brands up to day sixty (60), will be eligible for return since the Member has had full use of the intellectual property for a full sixty (60) days. Irrespective of the date of the request for a return, after the first thirty (30) days, the first installment is not recoverable.
If you have purchased access to our products in the past and received a refund. You are NOT eligible for another refund if you purchase again.

To request a refund, please go to http://www.worldwidebrands.com/refund

Do more with

Expert Office
Submit tech questions to Ask the Experts™ at any time to receive solutions, advice, and new ideas from leading industry professionals.

Start 7-Day Free Trial