Small electronics distributor with a warehouse unit

Independent electronics and appliance stores, regional chains, office suppliers, schools and installers, and online retailers.

You earn the margin between your buying price and your wholesale price, often with volume discounts and payment terms for regular accounts. Faster stock turnover and good supplier pricing matter most.

• Supplier negotiation
• Business-to-business sales
• Inventory and logistics
• Managing credit and invoicing

• Many major brands only sell through authorized distributors, so you may need to start with smaller brands or buy from existing distributors
• Counterfeit and gray-market goods. Warranty and legal problems follow if you buy from unverified sources
• FCC rules, product safety standards and lithium battery shipping and storage rules. Check what applies to your products
• Property, general liability, product liability and cargo insurance, plus workers' compensation once you hire
• Late-paying customers when you offer terms, and large amounts of money tied up in stock
• A local business license, a state resale certificate, and zoning and fire code approval for your warehouse are typically needed before you trade. Check with your city, county and state tax agency

Startup costs are typically around $25,000 to $100,000, depending on the warehouse unit, how much stock you buy and the brands you carry. These are estimates. Much of the money is tied up in inventory, so plan for slow-paying customers too.

Monthly revenue is typically around $15,000 to $75,000, depending on the brands you can access, your customer base and how much stock you hold. These are estimates, and revenue is not profit once you pay for stock, rent and insurance.

Check whether you need a local business license, a state resale certificate, and zoning and fire code approval for your warehouse. Also check FCC rules, product safety standards, lithium battery storage and shipping rules, and your insurance requirements.