How to Maximize Margins on Smartwatches and Wearables

Smartwatches have transitioned from fitness tracking gadgets to core fashion accessories. However, because of high brand competition, retail price matching can squeeze your profit margins. To thrive, mobile accessory retailers must adopt smart bundling and product pairing techniques.

The Power of Accessory Bundling

Don't just sell the smartwatch by itself. Pair the watch with high-margin items. For example, design a "Premium Sports Package" that includes:

• A rugged silicone strap replacement
• A tempered glass screen protector
• A travel charging case

By selling these items together at a minor package discount, you raise your average order value (AOV) and clear low-volume items at high net margins.

Custom Strap Displays

Straps are the fashion statement of wearables. Keep an attractive, physical display unit at eye-level showing off metal mesh, braided nylon, and vintage leather straps. Customers love customizing their watches, and straps yield up to a 60% gross wholesale profit margin.

After-Sales Screen Protection

Just like phones, smartwatch screens are highly vulnerable to scratches and cracks. Train your sales representatives to offer screen guards and liquid glass coatings automatically with every wearable purchase. It's a low-cost service that provides high perceived value.