When buying and reselling used goods, there are various factors you need to consider as you source your products. If you buy used mobile phones, you could technically purchase used handsets from the UK, EU, or further afield. What’s the best approach?
Here are six reasons we suggest sticking to UK and EU used mobile phone wholesalers and avoiding the temptation to source your phones from the USA, China, or other countries in the far east.
1. Quality Assurance
When you buy used mobile phones from UK or EU suppliers, you’re much less likely to run into quality issues.
For example, you might stipulate that iCloud locks are removed. It can be quite challenging to get those guarantees from retailers that don’t speak fluent English, or vice versa.
Buying from the UK or EU makes this less of an issue.
Across the EU, the laws on distance trading are strict, and if you run into issues with something you’ve bought, the law is on your side.
2. Safe Delivery
Buying goods from overseas always carries some risk. The longer the distance that your consignment travels, the more chance there is that something will go wrong. Items routinely get lost or damaged, and making claims can be tough.
There’s also the issue of customs, import VAT, and handling fees. These costs can easily add hundreds of pounds to the cost of a parcel.
Of course, when you buy in the UK or EU, you benefit from shorter and faster delivery, no customs or import VAT charges, and more straightforward claims if there is damage.
3. Simple Returns
If you receive a box of phones that’s damaged, or not as described, you’ll need to send them back. The last thing you need is a convoluted returns process, or excessive costs for returning the items.
Buying in the UK from a wholesaler like Phoenix Cellular is the obvious way to avoid receiving devices that you can’t use. If anything’s wrong, it’s really easy to return the phones to us. (Be sure to contact our team for advice first — just so we know when to expect your return.)
4. Manageable Prices
Some retailers are tempted to buy phones from China to achieve better profit margins. But doing so means you’re essentially buying phones blind, without full information on the brands that you’ll get. And unless you speak Chinese, you may not fully understand the wholesaler’s grading system either.
Buying in the UK and EU is slightly more expensive, but not excessively so. More importantly, you will achieve better value for money. The devices you buy will be recognisable brands, with a proven track record, and you won’t risk buying phones with hidden issues that could devalue them.
5. Logical Grading
Customers are increasingly demanding when it comes to used mobile phones. Simply selling a phone as ‘used’ is no longer good enough. They expect detailed information on exactly how the phone looks.
6. Marginal VAT Rules
The VAT Margin Scheme is a method of calculating VAT for businesses selling used goods such as used mobile phones.
The VAT Margin Scheme differs from the standard rate of VAT in two ways: the rate is 16.67% and only charged on the margin you make selling the product rather than the full value of the product.
Phoenix Cellular created an online VAT calculator to help you understand the VAT options available on used mobile phones.
Always consult your accountant or HMRC for detailed guidance.
Buying from Phoenix Cellular
We have a consistent grading system at Phoenix Cellular, with a detailed description of our expectations at each grade. When you buy used phones from us, you know exactly what you’re getting. There’s no chance that you’ll receive phones that aren’t as described, so you can buy from Phoenix Cellular with confidence.
Contact a member of our trade team today on +441270 449999 for more information.