Phone accessories business can be very rewarding if planned and done the right way. With more than 3 billion phones in the world and the number still growing, getting even the minutest fraction of this market translates into huge profits. Statistics show that over 40% of phone owners change their phones every 2 years.
There are hundreds of phone brands and thousands of models presenting huge market opportunities. Just what makes a phone accessories business attractive as a startup business?
Low capital requirements
An overwhelming majority of phone accessories are made in China where they are produced at just a few cents at factory gate prices. Even high-end iPhone covers will typically go for less than $3. This means that it is easy to stock up a few hundred iPhone cases with a low budget.
Phone accessories are also suitable for the drop shipping business model because they are easy to ship. There are many phone accessories dealers who will be willing to supply your customers with your own labels. Yours is just the marketing part.
The good thing about phone accessories is that there are ever fresh offers as new phone models come out. There is a new iPhone every year, for example, translating into a new customer base each year. This is just for one model. If you focused on 5 phone brands, you are forever facing new demand as these brands churn out new phone models.
Lower customer service costs
Unlike phones, accessories have lower return rates as they are simple and mostly non-electronic. Phone cases, for example, are rarely returned as they are almost guaranteed to fit their phone models. This reduces the overall operating costs and implies better customer satisfaction. Most customers also view phone accessories as flimsy one-time purchases, so a customer will rarely bother harassing customer care because of a pair of headphones worth
Suitable for both conventional and online stores
Phone accessories require a relatively small kiosk to sell from if you decided to go for a conventional store. The good thing is that they are also easy to market online as functional and fashionable accessories. A vibrant social media presence will easily attract good engagement for popular phone accessories.
Easy to scale up
The huge number of phone brands and models provide the allowance to start small and scale up as the business grows. You could start out selling Samsung phone cases and expand the business to offer iPhone, Oppo and other high-end brands in a very short time as you analyze and respond to the market.
What phone accessories do you think move fast enough to offer a good business opportunity?