Where to Source Gaming Consoles to Resell for Profit

Getting Started with Sourcing Gaming Consoles

If you’ve been thinking about diving into the world of reselling gaming consoles, you’re in for an exciting ride. The market for new, used, and especially retro consoles is booming, and with some savvy sourcing strategies, you can turn a decent profit. Here’s a comprehensive guide to help you navigate through the best places to find gaming consoles to resell.

Sourcing Channels for Gaming Consoles

1. Facebook Marketplace and Gumtree

These platforms are goldmines for finding consoles at a deep discount. Parents often sell their children’s outgrown consoles, particularly around the holiday season when kids receive the latest models as gifts.

• Cost per Item: Typically $100-200 for current-gen consoles.
• Expected Condition: Often well-maintained but missing original packaging.
• Pros: Low prices and local pickup, which means no shipping costs.
• Cons: Competition from other buyers can be fierce, especially post-Christmas.
• Profit Margins: Expect around 30-50% profit margins.

2. Pawn Shops

Pawn shops are excellent for scoring a deal on consoles traded in for quick cash. They often price items at 40-60% of their market value.

• Cost per Item: $100-250 depending on the generation and brand.
• Expected Condition: Generally good, but always test in-store.
• Pros: Possibility of negotiating the price further.
• Cons: Limited selection, and some stores may not allow returns.
• Profit Margins: Can be 40-60% if sourced right.

3. Garage and Car Boot Sales

These are perfect for finding retro consoles like the N64 or GameCube, often sold by people unaware of their current value.

• Cost per Item: $30-80 for retro consoles.
• Expected Condition: Might need cleaning but usually operational.
• Pros: Negotiate directly with sellers for better deals.
• Cons: Quality varies greatly, and items may not be tested on-site.
• Profit Margins: Potentially 100% or more if you find rare items.

4. Online Liquidation and Wholesale

Sometimes big retailers liquidate excess inventory, which can include gaming consoles.

• Cost per Item: $200-$350 for current-gen consoles in bulk.
• Expected Condition: New or like-new, often in original packaging.
• Pros: Consistent supply and often brand new items.
• Cons: Requires upfront cash and business licenses.
• Profit Margins: 20-30% once sold individually.

5. GameStop and GAME Trade-in Arbitrage

Utilize their trade-in promotions for arbitrage opportunities.

• Cost per Item: Purchase clearance items low, trade for high credits.
• Expected Condition: Brand new but check promotion details.
• Pros: Higher trade-in credits during promotions.
• Cons: Requires understanding of store policies and promotions.
• Profit Margins: 10-20% profit after reselling.

6. Thrift Stores

While not always reliable, sometimes thrift stores have hidden gems.

• Cost per Item: $20-50 for older models.
• Expected Condition: Varies greatly; requires thorough testing.
• Pros: Low investment.
• Cons: Rare finds and often incomplete sets.
• Profit Margins: Up to 150% if you find a hidden gem.

7. Estate Sales

These can be particularly lucrative for finding older models and complete sets.

• Cost per Item: $50-150 for retro consoles.
• Expected Condition: Often in good condition, especially if kept in storage.
• Pros: Potential to find bundled accessories and games.
• Cons: Competition from collectors.
• Profit Margins: 50-100% if you bundle and sell accessories separately.

8. Clearance Sections at Retailers

Check big box store clearance sections for deals, especially post-holiday season.

• Cost per Item: $150-300 for handheld consoles.
• Expected Condition: New or open box.
• Pros: Warranty still applicable.
• Cons: Inventory moves fast; requires quick action.
• Profit Margins: 15-25% if you catch a good sale.

What to Look For

When you're out sourcing, keep an eye out for specific features that can increase the value of a gaming console:

• Sought-After Models: Limited editions or special bundles can be worth significantly more.
• Complete Bundles: Consoles with controllers and games sell faster and for more money.
• Retro Gold: 90s-era consoles, especially if boxed, can fetch high prices.

Red Flags

Be wary of the following when sourcing:

• Fake Consoles: Knock-offs or emulators are common, especially in the retro market.
• Damage Beyond Repair: Extensive HDMI port damage or disc drive issues can be costly to fix.
• Low Demand Models: Some consoles are simply not in demand and aren’t worth the investment.

Seasonal Sourcing Tips

Consoles tend to be cheapest right after the holiday season when many people upgrade. Conversely, they tend to sell for more just before the holidays as demand increases.

Startup Budget

You can start sourcing gaming consoles with as little as $500. This budget allows you to buy 2-3 consoles from lower-priced sources like Facebook Marketplace or car boot sales.

Maximize Your Listings

Once you’ve sourced your gaming consoles, use tools like ListingGenie to create high-quality listings that will attract buyers and maximize your profits.

FAQ

• What's the best time of year to buy and sell gaming consoles?
  Buy after Christmas and sell before holidays or during the back-to-school season.
• How can I test a console before buying?
  Bring games or accessories to test at the point of sale, ensuring all functions work.
• Are retro consoles worth the investment?
  Yes, if you find popular models or complete sets, they can be highly profitable.
• What should I avoid when sourcing?
  Avoid fakes and consoles with significant damage or no demand.
• How much should I invest to get started?
  Start with a $500 budget to cover initial purchases and leave room for testing and repairs.