Electronics wholesale from a small unit

Independent electronics and gift retailers, convenience and discount stores, online sellers, schools and small businesses buying in volume.

Margin between your buying price and trade selling price, helped by volume discounts from suppliers and repeat orders from regular accounts.

• Supplier negotiation
• Stock and cash flow management
• Selling to trade buyers
• Organising storage, picking and dispatch

• Large amounts of cash tied up in stock, so keep an eye on cash flow
• Counterfeit or unsafe goods: check supplier credentials and keep paperwork
• Product safety marking (CE or UKCA), and WEEE and battery rules, check what applies to you
• Customs, import duty and VAT if you import from outside the UK
• Stock, fire and theft insurance, plus public and product liability cover
• Lease terms, business rates and planning use for the unit
• Trade credit: late-paying customers and bad debts
• Employer's liability insurance once you hire staff

Startup costs are typically around £15,000 to £75,000, depending on the unit, the range of stock you hold and your delivery set-up. Large amounts of cash can be tied up in stock, so watch cash flow.

Monthly revenue is typically around £8,000 to £40,000, depending on your range, supplier terms and how many retailers you supply. These are estimates, and the work is full time, starting at around 35 hours a week.

Check supplier credentials and keep paperwork to avoid counterfeit or unsafe goods. Also check CE or UKCA marking, WEEE and battery rules, customs duty and VAT on imports, lease terms and business rates, insurance, and late-paying trade customers.