How To Launch a Profitable Wholesale Smartwatch Business

Why Smartwatches Are a Lucrative Wholesale Opportunity

If you're a wholesaler looking for new sales categories, there are few products that combine strong organic growth potential; immature, fragmented competition and reliable suppliers. When such a product category can be found, it’s profitable to jump in. Consider smartwatches: The smartwatch market has a compound annual growth rate (CAGR) of 27.8%. And these numbers are based on significant volumes. Total shipments for the smartwatch business worldwide are projected to hit 456.8 million units this year. In a growing pie, it’s relatively easy to carve yourself a slice of the action.

Choosing the Right Smartwatch Brands for Wholesale

Sales data for 2022, the last year available, indicates that the top five smartwatch companies are (in descending order by unit volume) Apple, Samsung, Huawei, Amazfit, and Garmin. Apple is the Goliath of the market, accounting for 30% of sales, with Samsung second-best at 10%. Beyond the top two brands, the market is highly diverse, with many smaller players. Consider focusing your inventory purchasing first on Apple and Samsung devices and then expanding to include second-tier brands as your capital and experience grow.

Sourcing Smartwatches at Competitive Wholesale Prices

As in any wholesale business, the health of your profits depends on reliably sourcing high-quality products at an affordable price. Developing relationships with distributors is key to success in wholesale smartwatches.

Look for smartwatch distributors that have a longstanding history in smartwatches or the closely related smartphone business, provide reliable smartwatch grading, offer watches in sufficiently large quantities, and have competitive prices that will allow you, as the wholesaler, to make a healthy profit margin.

Also, consider setting up your own “direct from consumer” business through your website. Having a direct line to customers who want to sell their own smartwatches is a great source of low-cost products.

Key Factors To Consider When Buying Wholesale Smartwatches

A used smartwatch retains value in proportion to its condition, cosmetics, functionality, and brand. Look for in-demand models that are lightly used and maintain high function. If you have expertise in repairs, you can also intentionally source impaired models that will require straightforward repairs like battery or screen replacement.

Much as in the smartphone market, Apple commands the high end of the smartwatch market, so you may find the most value in specializing in Apple watches. Garmin also sells watches that command high prices on the secondary market and could form a worthy second specialization. If you follow these guidelines, you’ll be well positioned for success with wholesale smartwatches.

Smartwatch Pricing Strategies for Maximum Profit

Getting access to wholesale smartwatches in bulk at the right price is more art than science. Finding a reliable distributor or supplier to partner with is essential. Since the product quality in the secondary market is variable, consider making test purchases at different grade levels to assess the accuracy of distributor grading.

The ideal scenario to look for is conservative grading that may be leaving value on the table. If you can find accurate grades at competitive prices that allow for you to make a reasonable margin, the next point to consider is volume — can they deliver in adequate quantities? A distributor that passes these tests is worth their weight in gold.

Price your smartwatches with full awareness of what your competitors are doing in the market. You want to be in the ballpark of others, but learn to recognize when you have a superior offering, such as a watch in particularly good condition, that merits a higher price. By keeping your finger on the pulse of the market, you can capitalize on moments when certain models become scarce or new demand trends appear. Flexibility and attention to detail are key to sound pricing.

Marketing Strategies To Drive Sales

A diversified online marketing strategy will offer the best yield of customers. Consider combining SEO, content marketing, organic social media, and multiple advertising channels such as PPC, YouTube, Facebook, and Instagram. TikTok is a fast-emerging platform for video advertising, but it reaches a young audience that is unlikely to be in the smartphone reselling business in high numbers.

One of the best opportunities you have as a smartphone wholesaler is to build a meaningful industry resource through blogging. By creating useful content for resellers, you can attract and become an authority for exactly the type of customer you’re in search of. Take a tally of the questions that typically confront new smartwatch resellers, and begin answering those questions at length and in detail.

Common Mistakes To Avoid in the Wholesale Smartwatch Business

The classic error of new business owners is entering a market they don’t understand and don’t want to learn. The smartwatch business is a great one, but only for those prepared to learn the ins and outs and invest significant energy in becoming an expert in the brands, models, features, and outlooks of smartwatch users.

The second major category of error to avoid in business is putting all your eggs in one basket. Don’t devote the majority of your marketing resources to a single channel before you’ve validated that it produces customers at an affordable rate. In the beginning, you’ll need to test many channels and ad products and then focus your resources on those channels that actually produce.

FAQs

What are the best smartwatches for resale in 2025?

The Apple Watch — current generation and previous generations — holds the crown for the most sold smartwatch on the secondary market. The next most common device family is the Samsung Galaxy line-up.

Should I focus on brand-new or refurbished smartwatches?

New smartphone wholesalers should experiment with multiple product types and models. Let customer demand dictate where you ultimately focus your efforts.

What’s the best way to handle smartwatch returns and warranties?

The core responsibilities of customer service are the same for smartwatches as for any other consumer electronics. To win customer trust, make returns easy and process warranty claims quickly.

What factors affect the resale value of smartwatches in the wholesale market?

Smartwatches sell based on brand value, model features, functionality, and cosmetic condition.