New, used or both
The first choice is what you sell. New handsets are easy to explain to a customer and come with a manufacturer's warranty, but supplier terms and the competition from networks and large retailers keep the margin thin. Used and refurbished handsets can leave a better margin, but you carry more risk: the condition has to be checked, the stock is one-off, and you stand behind it with your own warranty.
Many independent shops sell both, using new phones to draw people in and used phones and repairs to earn. If you sell used phones, your records matter more, because you will want to know what each unit cost you and where it came from.
Where stock comes from
New stock usually comes from distributors and wholesalers, and many will want to see your business details before they open an account. Used stock comes from the public, through trade-ins and buy-ins at the counter or on a web shop, and from suppliers of refurbished and used batches.
Whichever route you use, work to a routine. Check each phone when it arrives, record its IMEI, note the condition, record what it cost and where it came from, and label it. Checking a phone against a blacklist or lock database is done with a separate checking service, not with a till. Decide in advance what you will ask of a seller who brings a phone to the counter, and write it down so everyone on the team does the same.
Accessories and repairs as profit lines
Cases, chargers, cables and screen protectors are cheap for the customer and often leave a healthy margin for the shop. They are also the reason people come in on the days they are not buying a phone.
Repairs bring footfall and repeat custom, and give you something to offer people who do not want to replace a phone. They also need skills, parts stock and a tidy process. If you plan to repair, read how to start a phone repair shop in the UK alongside this one.
Trade-ins and part exchange
Trade-ins turn a customer's old phone into the deposit on a new one, and they feed your used stock. They also put money at risk, because you are paying for a device you have not yet sold. A trade-in needs a method for valuing the phone and a routine for checking it, covered in how to price phone trade-ins and buybacks.
Record every trade-in the same way: the IMEI, the model, the condition, what you paid, and who you bought it from.
Tills, printers and stock records
A phone shop needs more from its till than a simple card reader gives. You need to take payment, print or email a receipt, hold a stock record for each handset by IMEI, record trade-ins and returns, and close the day with figures you can trust. Most shops also want the following kit:
- A receipt printer, thermal or A4.
- A label printer for IMEI barcodes and price labels.
- A barcode scanner that works like a keyboard.
- A cash drawer, and a card machine.
- A safe place for devices left for repair or collection.
If a stock record is held by hand, it falls behind the moment the shop gets busy. Decide early whether stock lives in a spreadsheet or in software, because moving later is harder than starting properly. How to keep track of phone stock by IMEI explains what to record.
If you want a touch-screen terminal, a thermal receipt printer and a barcode scanner for the counter, see touch screen POS hardware for phone shops.
Selling online as well
Customers search online before they walk in, and many want to see what you have in stock, what a repair costs or what their old phone is worth. A simple website that shows this can bring people to the shop. A full web shop can sell phones and accessories online and take repair bookings.
The trap is running two separate systems, so that something sold in the shop is still listed online. Can one system run your shop and website? looks at that problem, and POS with an online shop shows one way of avoiding it.
Choosing a POS
The point-of-sale system is the one tool you will touch hundreds of times a week, so choose it on what your shop actually does: IMEI stock, repairs, trade-ins, an online shop, the hardware you own, and VAT and reports. How to choose a POS for a phone shop is a neutral checklist you can use on any vendor.
We make Gadgets POS, so we have an interest. You can see how it works for this kind of business on the page about a POS system for mobile phone shops.
Opening checklist
- Business set up, with your accountant's advice and the start-up pages on gov.uk.
- Premises chosen, with the lease terms checked.
- Insurance in place for stock, premises and customers' devices.
- Supplier accounts opened for new stock, accessories and parts.
- A written routine for checking, recording and labelling every handset.
- A routine for trade-ins and buy-ins from the public.
- A till, receipt printer, label printer, scanner and cash drawer.
- A stock system chosen and set up, with a trial week run through it.
- A price list for repairs and a warranty written down.
- A website or listing that shows what you do and where you are.
- A closing routine for the end of each day.
Where Gadgets POS fits
Gadgets POS covers the till, IMEI stock, repairs, trade-ins and an online shop in one system. It does not include offline selling or text messages to customers, so check the list in How to choose a POS for a phone shop against your own needs.
About this guide: it is written by the team that makes Gadgets POS, a POS system for phone, gadget and repair shops. It is general guidance, not legal, tax or financial advice, so check your own position with your accountant, your insurer and gov.uk. It contains no invented statistics, and any worked example is an illustration with made-up numbers. Last reviewed 10 October 2026.