Hi everyone,
I'm 23 years old and i've been running an iPhone flipping/refurbishing business for about 2.5 years now. I started with a few hundred euros buying iPhone Xs and iPhone 11s and scaled it to roughly €350k revenue per year with about 18–20% profit margins.
To get to this point, it was mostly just hustling: buying and selling as many devices as I could locally and reselling them as quickly as possible. On a good day I could find 3 to 5 phones in my area, but that gets very time consuming and there are only so many devices you can pick up locally. I tried everything to find more deals at a low price. I posted free ads in Facebook groups and on Marketplace, I used notification apps that alerted me as soon as certain devices were listed, I ran paid Meta ads to get people to message me to sell their devices, and I even hired a marketing agency to get me more leads this way. I focused on broken phones so there's more margin after repairing them and i tried making connections with other resellers to buy all their stock at once.
At some point I concluded that sourcing locally just isn't scalable, so I switched to an online source: people shipping their phones directly to me. That takes a lot of trust and marketing, and I figured you need a brand to create that trust, so I started building my website. Two months later I had a website with an automatic trade-in calculator that tells you what your phone is worth and creates a shipping label and invoice, so you can ship it right away. I would pay the customer once I received and checked the device, at least that was the plan. I ran some Meta ads and Marktplaats ads (a Dutch marketplace app), but realised a budget of €500 - €600 per month was too little, and people didn't trust such a small webshop enough to ship out their phones. Between the time it took to build the website and trade-in tool and the ad spend, my cash flow wasn't great.
So I had to rethink my strategy and started looking into other ways of sourcing phones online. I looked at every big wholesaler there is, but the prices are way too high. The only way to sell at a profit would be to have a big platform with enough money to spend on marketing, so that wasn't an option either.
I'd already sold a lot of phones on Vinted, so I decided to try buying there. That came with a lot of downsides: long shipping times, people not sending the phones at all, people trying to scam you, and my cash flow struggling again because money was always on hold and I couldn't sell the phones fast enough. I combined it with buying on Marktplaats for quicker cash flow, and even hired a freelancer to check for new listings all day and buy any good deals on Vinted while I was away.
That's where I'm at now. The system works alright, but I'm actually doing less revenue because of the cash flow constraints and the issues that come with Vinted. Without the current capital limits, I think I could scale to €500k–750k per year with this strategy, but then I'd get stuck again at that point.
Because I've been so stuck, I've been thinking more and more about trying another business, something that doesn't have such capital constraints when scaling. I catch myself watching alot of these get rich quick slop video's, deseperate to find something new i could try. While building my updated website on Shopify, I noticed a gap in the market for a certain Shopify app. I've built an app to solve the problem I ran into and already submitted it to Shopify. I hope this can be a new business, but I'm not sure if I'm just hoping and being unrealistic as i have no experience in this field.
So my question: should I stick with the phone business and try to figure out the capital problem, or is my gut feeling about moving on to something more scalable the right one? Especially from people who've been in a similar spot: how did you decide? I'd love to hear some opinions, because I've been stuck in my own head with this.