Start An Online Electronics Store - Business Ideas

Updated: September 15th, 2022
Start An Online Electronics Store

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

An electronics store is where you can purchase any electronics, from smartphones to televisions. To start an electronics store, choose a niche first. You can sell brand-new electronics or focus on used electronics. Include high-quality and detailed product descriptions to increase the chances of success.

Starting an online electronics store requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell electronics, or selling electronics online, you can use this page as a guide for everything you'll need to know.

Key Stats

starting costs
$35.1K
gross margin
57%
avg product price
$650
time to build
270 days

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$66

$700

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$75

$4,786

Total Startup Costs

$7,877

$69,947

Successful Businesses

Business URL Rank

Plugable Technologies

plugable.com/

9

Farnell

farnell.com

13,232

TCL

tcl.com

16,318

SparkFun Electronics

sparkfun.com

17,257

Electron

electronjs.org

22,346

Jumbo

jumbo.ae

33,383

Learning about Electronics

learningaboutelectronics.com

40,633

Tonaton.com

tonaton.com

45,291

Electronics For You

electronicsforu.com

51,813

Pololu Robotics and Electronics

pololu.com

63,222

Ministry of Electronics and Information Technology, Government of India

meity.gov.in

63,791

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a online electronics store. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

High margins

The gross margins for your online electronics store are typically around 57%, which is considerably high and allows you to grow your business and manage costs easily.

Easy to encourage "impulse buy"

In the online electronics store, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A online electronics store can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

High employee turnover

In the online electronics store, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a online electronics store, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

High overhead expenses

With starting an online electronics store, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

    Learn more about affiliate program ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜