To learn how to start a refurbished goods business  


Key Learnings from the Article

1. Business Idea – Refurbished Goods Business

Refurbished business is very successful in present time. Even Amazon has also entered this business.

2. Goods Procurement – Refurbished Goods Business

To start the refurbished goods business, you can procure the goods in the following ways:

  • Purchase certified refurbished goods in wholesale from
  • Purchase broken electronic gadgets online
  • Purchase refurbished goods directly from manufacturers

3. Customers – Refurbished Goods Business

Instead of retail customers, target big customers like educational institutions like:

  • Schools
  • Colleges
  • Polytechnic institutes
  • Universities
  • Startups
  • 40% business of the refurbished goods comes from educational institutions.
  • 20% of the business share is of medium/small/ micro-enterprises.
  • Retail customers also have a share of 20%.
  • NGOs/Government institutions have 20% share in the refurbished business.

4. Testing Functionalities and Manpower

  • Check the functionality and defects of refurbished goods before selling them.
  • Refurbishment process is as follows:
  1. Conducting diagnostic test
  2. Replacement of defective parts
  3. Cleaning inspection
  4. Repackaging
  • Hire mechanic for repair work in the starting of the business.
  • You should contribute in filling online forms and manuals.
  • Take the help of an expert technician once the business starts giving good returns.

5. Cost for Establishing the Refurbished Business

CAPEXCost (Rs.)
Refurbishing tool kit (diagnostic kit )10000
Business incorporation fee5000
TotalRs. 65000
OPEXCost (Rs.)
Electricity bill5000
Mechanic salary15000

6. Profit from the Business

For example, you are selling a refurbished iPhone the profit will be:

 Cost of procuring an old iPhone = Rs. 40,000.

Market value of a new iPhone =  Rs. 1 Lakh.

Pickup charge =  Rs. 500

Refurbishment process cost = Rs. 7,500.

Selling price of the refurbished iPhone = Rs. 73,000.

 Profit from selling a refurbished iPhone =  Rs. 73,000 – (Rs. 40,000 + Rs.500 + Rs. 7,500) = Rs. 25,000 per phone.

If you sell two iPhones in a month, then the profit is Rs. 50,000

Offline retailers earn only a margin of 2% – 3% on selling a new phone.

However, on refurbished products, you can easily earn a profit of 15%- 20%.

7. Key Points for Refurbished Goods Business

  • Label products as refurbished because customers appreciate transparency
  • Provide warranty
  • Provide relevant accessories
  • Provide money-back guarantee

8. Pitfalls – Refurbished Goods Business

  • Quality deterioration: Do not hide information else you may lose customers and this will have a negative impact on your business in the long-term.
  • Duplicate products: These products are a direct threat to refurbished goods business.

Quikr and OLX platforms have high creditability. In such a case, a new refurbished business may not get customers easily.  So, it is important to do proper marketing for the sustenance of your business.

Key Outcomes of the Article

  • Target big customers for the growth and success of the refurbished business  
  • Create transparency with customers by labelling the products as refurbished
  • Hire mechanic for the repairing of the products at the starting of the business  

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