Online purchasing of electronic components is not as simple as buying books or clothing online. Even though you can often get items cheaper online than from a brick and mortar store, the online world of electronic components is a completely different ball game. A single faulty component can cause huge problems for a system long after the item has been purchased. So what makes a good online store for purchasing electronic components and what makes a bad one?
The Authentication Challenge That Defines the Industry
Legitimate distributors can get lost in a very complex global supply chain and get treated the same as a potential counterfeiter. In order to avoid the risk of purchasing potentially faulty or low-quality components, it is very important to verify all suppliers. Obsolete components and components that are no longer supported by the manufacturer can also be very problematic. These type of components can be sold as “Refurbished” which also creates confusion. In summary, preventing the distribution of counterfeit components in the global electronics supply chain is not only a challenge to prevent fraud, but also a challenge to ensure that all components are of good quality.
Reputable parts stores online have databases of authorized distributors of electronic components, lot tracking every lot of each part. That means an online parts store can confirm a part’s authenticity and even test the part out before stocking it. It’s only when a part is used that it is possible to be sure whether or not a part is of very high quality. But when a store has tested the part before putting it online, the chances are much higher that the part will be of very high quality, and meet all of a component’s specifications.
Components can fail for reasons other than they are fake. Improper storage, damage, etc. can all cause a component to fail. Some components are sensitive to storage temperatures, humidity, etc. A component can arrive at your doorstep in perfect condition, look great, and then fail hours or days later for no apparent reason. Many online suppliers treat all components like books and have no idea the part they are selling.
What investigation does the online parts store do to verify the suppliers from which they buy components? What kind of verification does the supplier have to do in order to be “verified” by the online store? Legitimate online parts marketplaces spend a lot of time and resources to verify the suppliers of the parts they sell. For example, at Fusion Worldwide, an online supplier of obsolete electronic components, we work hard to verify that our suppliers can meet our standards for quality, delivery, and authenticity.
Inventory Management as the Hidden Foundation
Every electronic component has a shelf life, that can be affected by storage conditions, but ultimately every component will go bad of its own accord. The time it takes for a given component to go bad can vary wildly. Electrolytic capacitors are notorious for drying out over time. Integrated Circuits can develop tin whisker growth that can cause electrical shorts. Batteries, not so much, but that’s about to change. Many online retailers, treat parts like books, storing them on shelves for long periods of time, until they are finally bought. Professional grade retailers, know that components are sensitive items, that must be stored in a controlled climate, and regularly audited to insure that old, obsolete, and failing parts are removed from inventory, before they cause problems.
A supplier’s ability to manage stock effectively is critical to their success in supplying current products. A supplier that maintains all current products on a First-In First-Out (FIFO) basis and stores them in a climate controlled environment will do everything to extend the life of the products and to avoid damage. Sometimes, a supplier will withdraw a product from the market. When this happens, the supplier will continue to supply the product for a transitional period and will clearly identify the product as being obsolete. The supplier will also advise on a date by which time the product will no longer be available. The supplier’s ability to manage obsolete and end of life products is also critical to their success. A supplier that can manage all products, current, obsolete and end of life effectively is a supplier that any business can do business with.
Secondly, suppliers typically store their inventory of components in warehouses around the world. The longer that a component is stored in a warehouse, the greater the risk that it will deteriorate. Factors that can cause a component to deteriorate include temperature fluctuations, humidity, static electricity, dust, and poor handling. Some components are more sensitive to these factors than others. For example, Electrolytic Capacitors (E-Caps) can dry out after long periods of storage, Integrated Circuits (ICs) can develop tin whisker growth that can cause them to short circuit, and batteries can loose their capacity over time. As a result, suppliers who store inventory for long periods of time in warehouses increase the risk that the components that they sell will be defective. To mitigate this risk, suppliers who store parts for extended periods of time should maintain accurate records of the amount of time that each part has been stored, store components in climate controlled warehouses, conduct regular audits of their stock to detect components that have deteriorated, and test components that have been stored for long periods of time prior to sale. There are some suppliers that specialize in the sale of obsolete components. Although these components may be obsolete, they are still within specification and are no longer being manufactured or supported by the original component manufacturer. Suppliers that sell obsolete components should clearly disclose the age of each component, and the conditions under which the component was stored.
Technical Support That Actually Understands Electronics
You should also get a feel for the quality of support offered by the parts marketplace. In terms of knowing about electronics, does the support staff know the difference between a microprocessor and a microcontroller for example?
Online retailers of electronic components can provide their customers with a great deal of additional information, such as detailed technical datasheets and application notes for the parts that they sell. Many of the components that are available online are used in a wide variety of applications, and as such, they may be cross referenced to other components that are suitable for use in alternative applications. A cross reference database that allows users to search for alternative components that are no longer available is a particularly useful additional service provided by some online retailers of electronic components. The following are some of the additional services that the Fusion Worldwide online shop provides to users.
A good online store for buying electronic parts also will have qualified staff, that can help with finding the right parts for the customer’s needs. In addition, the parts are to be described with sufficient detail, so the customer can decide which parts to order. This is achieved by providing datasheets, application notes and cross-reference data to the customer. This enables the best choice to be made, and the customer to be able to use the parts effectively in his projects.
Transparent Pricing and the Hidden Cost Problem
Prices for electronic components can be affected by many different factors. Many components are manufactured in large quantities, and have long lead times, but some are produced in small batches or to meet specialized needs. Prices for these types of parts are typically affected by the manufacturer’s allocation of the current inventory, and can vary depending on the vendor from whom the part is purchased. Many online component vendors list the same components for sale at different prices, sometimes by as much as 30% to 40% or more.
Fair and clearly disclosed pricing to customers, using all of their various quality parts for sale, would be an indicator of a good parts supplier to utilize. All of the fees that a supplier would be charging must be clearly disclosed to customers, upfront. Also, the various prices that are charged for the same items must be consistently applied by all personnel within a supplier’s organization. It is common for various electronic parts to be on an allocation by the part’s manufacturer. Those parts that are on allocation, would possibly have a premium price. This premium pricing must be clearly disclosed to customers, as to the basis of the higher charges.
The Return Policy Test
The return policy for a component that the customer has purchased and not used can tell a lot about a marketplace’s policy for components of poor quality, or even possibly counterfeit. Components for which a marketplace has very strict return policies for components that have not been used could indicate that the supplier of these components is of poor quality or that the marketplace is afraid that the components may be counterfeit.
On the other hand, a reputable online retailer of electronic components does not place restrictions on the use of returned components. All parts are sold as unused and therefore the components can be used for any purpose that the customer desires. Return policies for online retailers of electronic components do not restrict their use and recognize the inherent design changes and revisions to product specifications that are part and parcel to an engineer’s work. If a company sells engineering samples or even offers engineering consulting services to its customers, this would be a primary example of an online store of electronic components that acts as a true partner to customers designing new products and thus is considered to be the best online retailer of electronic components. Online stores of electronic components that function in this manner would be considered the best online retailers of electronic components in the world.
There is so much more to distribution of electronic parts than buying low and selling high. Success of a parts distribution market place must be aligned with that of its customers. Therefore, they must have knowledge and the commitment to support its customers to achieve their objectives.
