Wholesale of Electronic Goods – Are Wholesalers to Blame For Cheap Electronic Products?


The electronic industry is now witnessing the invasion of cheap electronic products. A random survey among online sellers will lead you to find a DVD player sold at half electronic goods  its usual price or a mobile phone with all its trendy design and mouth-watering features sold at 50% to 70% less than the price of similarly manufactured ones. One reason given to explain the sudden drop in the price of electronic goods is that they were sourced from wholesalers and purchased at a discounted price!

Critiques of the low-priced electronic items will argue that they are not good buys, saying that cheap products are low in quality and standard; that they do not even provide after-sales service. This line of argument is misplaced and inaccurate. It not only fails to consider the latest developments in the electronic industry but also completely glossed over the positive impacts of wholesalers and drop shippers of electronic goods. Of course, poor quality electronic products are cheap. Very cheap even. But cheap electronic goods are not necessarily poor in quality. Latest advances in technology and the contributions of wholesalers and drop ship companies have helped bring down and significantly cut the prices of electronic products.

Online retailers of electronic goods who bought their supplies from wholesale drop shippers can afford to sell their products at a relatively lower price. They bought their supplies at a discounted price allowing them to re-sell the same at a value much lower than the standard price in the market. They also avail of the drop ship arrangements offered by wholesalers. In this wise, retailers do not have to retain supplies or display them in trendy and pricey stores. With wholesale drop shippers, they do not have to hire personnel to man display centres or do the packaging and delivery of the sold items. Wholesale drop shippers had re-shaped the conventional retail industry. Most of these tasks are now assumed by the drop shipper. With a lower operating cost, online retailers can really afford to cut the price of their wares and attract more online customers. The retailers can do this without having to sacrifice the quality and standard of their products for doing so will ultimately cause the demise of the online retail industry.

Clearly, to say that cheap electronic goods are poor in quality is a short-sighted attempt to down-grade the positive influence of wholesalers and drop shippers. The consuming public should not be confused. Poorly-manufactured electronic goods are necessarily cheap but the reasonably-priced electronic products supplied by wholesalers and drop shippers continue to retain their quality and good value.

As Seen on BBC News, FORBES and CNN Money

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