The truth is there, but they don’t want to reveal it. Companies are used to keep their important information confidential, it can be the “secret recipe” of KFC, McDonald, the constantly changing algorithms of Google or the handset that cost you way more than its actual value. That’s why we want to reveal to you how the supply chain works for wholesale refurbished iPhone suppliers in Huaqiangbei, Shenzhen.
What’s Tonghuo (统货)?
Tonghuo (统货), a secret incoterm dominating the origins of refurbished iphones industry in Shenzhen, refers to buying or selling a large quantity of used iphones in different quality grades at one price. Speaking of tonghuo, few people would associate it with Hongkong. Lying underneath the decent, polishing, modernized international mega is the hidden, largest electronics transitional center in Asia, where you can find basically any kind of used phones packed in cartons that are in auction. Used iphones in auction in HK are sourced from all over the world, including pre-owned iPhones, iPhones that are stolen and defective phones or part parts from the phones assembly, then they’re sold and transported to mainland China mostly Huaqiangbei.
Common Practices of Tonghuo
In auction sites, second hand iPhones are usually categorized into four grades: Grade A, B, C and D. Sometimes they’re categorized based on place of origin(most are from Europe, US, Japan and South Korea), whether it’s activated and the warranty period. They’re sold by cartons, usually few hundred pieces in a carton. You’re allowed to inspect the quality before making the decision, but usually random check within a short time. When you decide to go into the deal, usually there’re two ways:
1. Negotiation with the seller and agree on a price.
2. Bidding: this is common practice by big companies.
Upon entering the auction held by the company, you would be given a bidding paper with your ID, write down the price you’re willing to pay for them, the highest bidder would get the goods.
Regulations in auction sites
In auction sites, it’s strictly regulated depending on companies. In most cases you’re not allowed to take pictures, some companies have listed how to bid and their after-sales policies.
In auction sites, it’s strictly regulated depending on companies. In most cases you’re not allowed to take pictures, some companies have listed how to bid and their after-sales policies.
Is it worth to buy from HK?
Opinions differ. We’ve talked with some frequent buyers who told us there were people making millions from a tonghuo deal but there’re also people who lost a fortune due to getting horrendously broken grades of iphones inside the carton. You must have a good knowledge to play the game, sometimes talking with the seller might help, they would give you some reference about quality as well as other information. But most of the time it’s your judgment that matters, you wouldn’t want to end up having a severely burnt second hand iphones like this inside, right?
Or ending up selling spare parts if the phones can’t be refurbished?
Besides, you need to have some money to buy second hand iphones in bulk from auction sites in HK as they’re usually sold by cartons, with moq starting from few hundred pieces. .
Apart from iPhones, “tonghuo” is prevalently used in the trading of an extensive range of second hand products in HK, including Samsung, Blackberry, Nokia, Motorola, laptops, kindle, etc. These products will be later transported into Huaqiangbei, refurbish and put on shelves again.
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