Retail

How To Open An Electronics Retail Store

A Winning Business

We live in the age of electronics, and people cannot live without their electronic devices. Almost everyone these days has one electronic device, including schoolchildren and even seniors. And every year, people wait in line to get the latest electronic models of their androids, iPhones, video games, PCs, and flat-screen TVs. Gadget store and gadget website businesses are recession-proof, judging by the annual sales. For this reason, many people are considering opening an electronics store. And to make it easier for consumers, most electronics stores have an online platform that offers the buyer an even better experience than physically going to a brick-and-mortar store.

Consumer Electronics Companies – Start A Gadget Store

Electronic goods are not cheap. And retail stores that specialize in electronics enjoy high-profit margins; you can make a good living. Unfortunately, to the detriment of independent entrepreneurs, major retail chains today control a significant portion of the electronics market. It is essential to have a unique product, and excellent service, or open a store in an underserved area to succeed. But before you rush to open your doors, it is essential to know that some electronic stores fail; the primary reason is the failure to make a solid business plan. Your plan is crucial because it will reveal details about the business that will help mitigate any issues that may arise in the future.

Gadget Stores, Is There Demand?

Given the rise of chain electronics stores, conducting a market study before opening a consumer electronics store is more important than ever. Besides the significant trends in the national market that we will discuss in this guide, your market research should consider the dynamics at the local level.

Before you consider opening an electronics store, you’ll need to determine a need in your local area for such a store. You can start with an online search for electronics stores in your area. You also must remember that stores like Walmart, Amazon, and Best Buy offer online shopping and serve large geographical areas because of their partnerships with local shipping companies. That does not mean you will not succeed; instead, you can operate a more focused electronic store that only trades in digital devices, computers, Apple products, video games, small appliances for the home, or electronic goods repair. But this approach also narrows down your potential customer base.

Computer Repair Courses

Here are some popular online IT courses

Take An Electronics Course

Here are a few links to get you started looking for a good electronics online course

Gadget Store Market Research

This will allow you to find the answers to the following questions:

How is your local appliance market currently doing?
Who are your competitors near your area of operation?
Are the big names already present?
Will a new arrival be welcome in the community?
Where are potential electronics customers shopping for now?
What additional services do they offer (delivery? pick up, click and collect?)
Is yours an underserved geographic area?
Who are your indirect competitors (e-commerce sites, refurbished product sales sites, second-hand product sales sites)? Etc.

Consumer Electronics Industry

There are several options for opening an electronics store, and they include the following:

Buy into a franchise. The problem is that all franchise stores come with a franchise fee, royalty fees, and several other administrative fees that can eat up your profits. Plus, the cost of an electronics franchise store is sometimes prohibitive.

Build one from scratch, but this can also be prohibitively expensive and not recommended. If you decide to build one from scratch, its location must be prominent, far from your competitors, and in a busy business district. Your most significant difficulties include the following:

Remaining competitive against the big retail stores.
Make yourself known.
Gaining the trust of your future suppliers and customers.

Buy an existing electronic store; this is ideal, especially if it already has a current online store. Again, the cost to buy an existing electronic store depends on its size, location, and variety of goods. You may need anywhere from $100K to $1 million to purchase an existing electronic store. The ones selling only computer games for mobile phones are usually the cheapest. Buying an existing electronics store has several benefits; An established brand and fully trained staff. It is purchasing an existing store, which results in quick cash flow even if you lack credentials in the electronic industry.

Stores Like Radioshack

As a small electronics store, you’ll want to avoid the same fate as Radioshack and similar chain stores by doing the following:

Establish a niche in the electronics market
Develop robust marketing
Use both online and traditional marketing strategies to promote your business.
Be honest with your customers
Offer excellent service
Offer competitive prices
Sell quality products so that the risk of malfunction is low
Do not offer every electronics item but whatever you offer has to be a good brand

Don’t Rule Out Franchising.

If you want to lower the risk of your business failing, then consider buying into a franchise operation. The key is to look around to determine which franchise best suits you. This will mean surfing the internet and reading about different electronic franchises. Also, talking to people who are already running an electronics franchise store is essential.

The benefits of a franchise store include:

Well known brand
Exclusivity to a territory
Buying goods at pre-negotiated rates
Excellent support from the company

The disadvantages include loss of independence and paying several annual fees. Overall, the initial costs to invest in a franchise will be high, but the chance of success is much higher than if you were to go out on your own.

Here are a few links to get you started

Electronics Customer Contacts

Once the customer’s order is delivered, you should email the customer to thank them for the purchase. In the future, you can email the customer any discounts or promotions you have. You should provide a contact number or an email to the customer if they have questions.

Gadget Store Business Plan

What type of electronics store should I open?
Should I specialize in specific goods?
What are the startup costs for an electronics store?
How many people will I employ?
Where will I get my supplies?
Do I need a license to operate an electronic store?
How will I sell electronic goods? Online or in a physical store?
Who are my competitors?

Try one of these electronics store business plan models

Create A Legal Entity For My Electronics

Whenever you sell a product to the public, it is crucial to safeguard your assets. Thus, one should create a legal entity like a Limited Liability Corporation or a Corporation.

Here are a few legal operations to check out

Gadget Store Business Incorporation

Check out these few companies that can assist you in getting your LLC started.

Here are a few government links you might want to visit

IRS Website

This site by the IRS is a must-see when beginning your LLC

Look At Other Electronics Stores

Once you decide to open an online electronics store, the best way to understand the business model is to examine other existing businesses. It should include looking at:

Website Platform
Types of products
Prices
Customer reviews
Customer service
Payment options
Brand names of products

Knowing more about the other electronics stores allows you to modify your model to create something even better.

Gadget Store Competition

Anyone opening an online electronics store should be familiar with their competition, which in most cases are stores like Walmart, Best Buy, and Amazon. These stores may be influential, but they often do not offer the best prices, and customer service may be lacking. If you want to compete, your prices should be similar, but you can excel at customer service or offer a unique product or experience.

My Gadget Store Startup Costs

Opening an electronic store requires an enormous investment, especially in products and storage space. If you are going to open a brick-and-mortar store, this can be an expensive venture as you also need to pay rent, and utilities, meet zoning laws, etc. However, if you open an online store, the significant costs will be developing an online platform, storage for the merchandise, employee salary, and partnering with a delivery service. Your online platform will also need regular maintenance by an IT professional.

Funding My Store

Since the electronics business is lucrative, lenders will offer loans, but you will need good credit and a 20% down payment. Other options for funding include:

Crowdfunding
Venture capitalist
Small business loans
Ask for a loan from family and friends

Here are a few of your options

Small Business Administration

The Sma ll Business Administration, SBA has a program to fund new startups and is worth a look

Here are some startup or crowdfunding investment websites

Electronics Store Human Resources

In terms of your staffing needs, your workforce’s size will again depend on the size of your appliance store.

Staff the following positions:

Sales: Knowledge of their departments, revenue collection
After-sales service: deliveries, management of returns, and any problems.
Administrative: Accounting, payroll, schedule management, inventory management, etc.
Marketing: Budget management, organization of promotional campaigns, etc.
Upkeep and maintenance: Store upkeep, compliance with safety standards, equipment maintenance, etc.
Repairs: If you choose to repair equipment, be aware that you need to hire personnel with the appropriate training.

Although there are specific diplomas for working in an appliance store, these are not compulsory regarding sales staff training. Therefore, recruit salespeople passionate about the electronics business, or embark on the adventure on your own if you open a small neighborhood store.

Interior Design

Check out some of these retail design companies

Here are some design firms specializing in retail interior design

How Can I Sell Electronics Online?

Today it is simple to create an online platform to sell electronic items. Your website should provide a comprehensive review of each electronic device, the cost, and the payment options. You can also ask the customer how they want the item delivered- store pickup or shipped at home. Once your customer has placed the order, the details are reviewed and prepared according to the customer’s request. If the customer prefers a store pickup, you’ll have to provide the date and time. You’ll need to state if the shipping is free or associated with a fee for home delivery.

Marketing My Online Electronics Store?

Create a webpage where you share details about the store, the products, cost, and shipment.
Distribute flyers in the community
Go social on platforms like Facebook and Instagram
Distribute your business cards to the local community
Participate in local community events and make your business known
Create a youtube video of your store and products
Set up a weekly or monthly newsletter to keep your customers informed of promotions and new items.
Establish a loyalty program.
Communicate with the media: local newspapers, radio, and TV.

Consumer Electronics Websites

If you want to help customers understand more about products before purchasing, every item must have a detailed description like size, storage, safety, warranty, etc.
Assist customers by having live chat 24/7 support. You can set up live chats with numerous apps like Tidio or Gorgias
Display unbiased reviews about the product so that customers can have an honest understanding of the item
Customize the checkout cart to have one final look at the product and the price before the final purchase.
Have an online payment method that is simple and fast, and do not forget to add shipping fees, if there are any.

Build Your Own Electronics Store Website

Your restaurant domain name protects your website address on the internet. You can register a domain name with any hosting company you choose.

Some of the common domain registrars include:

Here is a list of some options for building a regular website.

Here is a list of drag-and-drop page builders for WordPress.

Gadget Online Website Shop

Before going live with an online store, you must perform a dry run as a customer to determine that all the systems are functional. The platform should have unlimited bandwidth capacity and the latest security features. You must correct all problems before going live.

Electronics Business Delivery

When you offer online shopping, the best way to deliver goods to customers is to partner with a delivery company in the area. For electronics products, a delivery company with a van is ideal. Check out the reviews and reputation of the delivery company before signing a contract. You can have no-contact delivery with the app ‘No Contact Delivery.’ The app will notify the customer when the delivery will arrive and how it will be dropped off (at the door, gate, or apartment manager). This app also gives the customer an option on what day to have the product delivered.

Here is a list of popular auto trader websites

Store Pickup

Another option for customers is to pick up the item at the store. Some customers may not want to pay shipping costs, and others may reside in areas where the product cannot be shipped. In such cases, the customer can pick up the item at the store. Several apps help customers arrange the date and time of pick up from the store.

Where Will I Get My Electronic Equipment And Supplies?

Once you open an electronics store, you will need supplies. Even though many vendors and distributors of electronic goods usually have specific requirements for stores. You’ll need to order a minimum amount and have a license certifying that you are operating an electronic store. Some distributors may even require references from other business owners to vouch for you. Finally, it is essential to know that some manufacturers will limit electronics items only to a limited number of stores in one specific location.

Here are a few links to get you started