Quick research of Smart Home Business

Today, we do a Quick Research (QR), which is a survey from the sales to the supply side. This is a demo. This is only a sample; you can use the same strategy to survey different industry items.

First and foremost, today’s survey is about a smart home business, which has a very broad scope; we will also evaluate industrial items later; please remain connected to our QR series of articles.

Today’s keyword is “smart home.”

If you want to know what something is in 2023, you can use AI to find out quickly. So, first, check chatGPT.

A smart home is a residence that uses internet-connected devices to remotely monitor and control home systems and appliances. These devices, often referred to as “smart home technology” or “home automation,” can be controlled by voice commands, mobile apps, or programmed automation.

We can research more once we get a basic understanding through GPT.

The next QR is Google search.

By searching Google you can see some articles and pictures, videos about smart home. This will give us a better understanding of what a smart home is.

So what is the trend of smart home?

It looks like there’s a pattern. And it’s still trending upwards.

Because we intend to study smart homes before doing business with this product. So we’ll look into where we can get these smart home items.

Next, we went to Amazon and searched for smart home.

Woo, Very many smart home products are sold on Amazon.

The smart plug is the lowest at 7.99USD per piece, followed by the security camera at 35.99USD per piece and the smart LED light at 13USD per piece.

There are plenty of different smart home appliances for sale on Amazon, which appears to be a large market, and they are all very technologically advanced products.

There are other sales platforms such as eBay, Walmart, etc., interested in searching for more information to investigate.

Next, let’s investigate the supply side. Use smart home to do a search in Alibaba.

Here we also see many suppliers supplying smart home goods.

Did you find it? It’s a smart plug, just seen on Amazon. alibaba supplier price is 4.18-4.46usd/pcs.

We all know a simple business model.

Profit = Selling price – Purchase price – Shipping cost

Assuming the product is a smart plug, what is the profit?

Profit= 7.99-4.46-1

The estimated profit is 2.53usd, gross margin 2.53/7.99*100%=31.66%.

Usually, we are a box of 50 or 100, which is the cost of purchasing 100 smart plugs, with a gross profit of 253 USD.

PS: These are estimates; the sales and buy prices will change, and the shipping cost is also an estimate for ease of calculation. If you want accurate data, you must have the precise amount of things purchased as well as the receiving address.

How is the delivery cost determined?

This is dependent on your shipping address; if you wish to know, please leave a message and we will provide you with a free shipping estimate.

If you want to look for different items to get a better deal on the purchase price and delivery costs, then contact us and we will provide you with a free consultation.

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