Defective electronics is a multi-billion market — and most people don't even realize how lucrative this business can be. Repair shops, refurbishers, and retailers make good money buying defective devices cheaply, repairing them, and reselling them at a profit. Here's how you can get started in this business.
The Basic Principle
The business model is simple: you buy defective electronics at a low price, repair or overhaul the devices, and sell them as "refurbished" or "repaired" at a significantly higher price. Margins range from 30% to 200% depending on the device and defect.
Example Calculation: iPhone 13
| Item | Cost |
|---|---|
| Purchase (defective iPhone, display damage) | €120 |
| Spare part (display) | €45 |
| Labor (30 min) | €15 |
| Total cost | €180 |
| Sale as "refurbished" | €380 |
| Profit | €200 |
Step 1: Find Your Niche
Specialization is key. Instead of repairing everything, focus on one device category:
- Smartphones: Highest volume, many defect types, high demand. Beginner-friendly.
- Laptops/MacBooks: Higher margins per device, but more complex repairs.
- Tablets: Less competition than smartphones, stable demand.
- Gaming consoles: Specialty niche with loyal customers.
- Household appliances: Large market, but logistics are more complex.
Step 2: Buy Cheaply
Your purchase price determines your margin. Good sources for defective devices:
- ampario: Marketplace specifically for defective electronics — find offers from individuals and businesses.
- Insolvency auctions: Large lots of defective goods at flat prices.
- Insurance claims: Devices with water or drop damage are often sold by the pallet.
- Local buy ads: "Buying defective iPhones" ads in your city.
Step 3: Build Repair Know-How
You don't need an electrical engineering degree. For most smartphone repairs, you need:
- YouTube tutorials (iFixit, JerryRigEverything)
- A basic tool kit (€30–50)
- Practice on 5–10 devices
For more complex repairs (mainboard, soldering), consider a course at a repair shop or a professional training program.
Step 4: Sell and Scale
You can sell your repaired devices through various channels:
- ampario: Create listings as a commercial seller — with rating system and buyer protection.
- Your own online shop: For higher margins, but more effort.
- Local sales: Repair café, flea market, or retail space.
Realistic Expectations
As a side income with 10–15 devices per month, €500–1,500 profit is realistic. Full-time refurbishers with 50+ devices per month reach €3,000–8,000 monthly. Important: don't forget to register your business — from the very first device you sell with profit intent.
Risks and Tips
- iCloud lock on Apple devices: Always check before buying — a locked device is worthless.
- Hidden defects: Water damage is often not immediately visible. Test devices thoroughly before buying.
- Warranty obligations: As a commercial seller, you're legally obligated to provide warranty (12 months).
- Spare part quality: Cheap no-name displays often cause follow-up problems. Invest in quality.