What is the Worst Place to Buy a Smartphone?

Where You Should NOT Buy a Mobile Phone

A year ago, three armed men entered a Verizon phone store in a Cleveland suburb. After restraining an employee with zip ties, they grabbed some cash, merchandise and left. One suspect was quickly captured. And then, the real robbery began. Or perhaps I should say, it continued. Read on to see why retail phone stores are not a great place to buy a phone, and other pitfalls to avoid.

One friend experienced this the hard way when her phone broke and she went to a Verizon store. She liked the popular Samsung Galaxy S24 Ultra with 512GB, which had a price tag of $1419. Verizon offered it for 36 payments of $39.44/month so she bought it. The next day she happened to visit the Samsung website, and found the same phone on sale for $1299. That made her curious, so she visited BestBuy online and found that phone selling for $999! Sure, it was refurbished, but it came with a warranty, and a savings of $420.

When she told me that, I did a little detective work and found a Samsung Galaxy S24 Ultra smartphone on Amazon for $847! That one was an "Amazon Renewed" model (a pre-owned product inspected and tested), but wow, what a long way from the original price at the "official" store. I think a lot of people would jump at the chance to save $572 on a like-new phone with a warranty.

The moral of this story is that the obvious place to buy a phone is probably going to be the most expensive. Let's look at some of the pros and cons of your options for a smartphone purchase.

Mobile Carrier “Brick and Mortar” Stores

Carrier-owned stores from Verizon, AT&T, T-Mobile, and others are often the most familiar places people think of when buying a smartphone. Walking into one guarantees new models and official warranties. However, they come with serious downsides:

Locked-in pricing and contracts: Carriers rarely discount flagship phones. A new iPhone will cost the same or more than in other retail outlets. Worse, they tie the purchase to financing plans or contracts, locking you in for two or three years.

Aggressive upselling: Carrier stores generate profit not from phones, but from plans, insurance, and accessories. Staff are trained to upsell you on expensive cases, screen protectors, or unnecessary plan add-ons.

Limited selection: Carrier stores showcase only what aligns with their promotions. Unlocked phones, budget models, or smaller brands are almost never available in-store.

Buying at a carrier shop can work if you absolutely want one-stop convenience, but it’s often among the most expensive options.

Big Box Stores (Best Buy, Walmart, Target)

Big box retailers offer wide accessibility and frequent promotions, but their pros are often outweighed by inconsistencies:

Better sales and bundles: Unlike carrier stores, Best Buy or Walmart sometimes discount smartphones directly or include gift card incentives. During holiday sales, you might save hundreds.

Carrier kiosks within stores: Many still push carrier financing, which brings the same contract headaches you get at dedicated carrier stores. Customers think they’re getting a special “Best Buy deal” but end up with the same restrictive carrier lock-in.

Hit-or-miss staff knowledge: Sales reps at big box stores often don’t specialize in smartphones. Getting real help for carrier compatibility or features is tricky.

Inventory risks: Budget models may be older stock with few future updates, and clearance sections sometimes mean you’re buying outdated tech.

For shoppers who time sales well, a big box can be a decent buy, but for those unaware of carrier lock-in traps, it can be nearly as bad as going straight to the provider.

Online Phone Stores (Manufacturer Direct)

Apple, Samsung, Google, and smaller brands now put their weight behind direct online sales. This is often the most reliable channel:

Guaranteed genuine products: You know you’re getting what you paid for.

Unlocked models available: Most official stores sell unlocked versions compatible with multiple carriers.

Trade-in programs: Apple and Google in particular offer predictable trade-in value, though not always top dollar.

The catch? Direct purchases rarely come with discounts unless tied to seasonal events. If you want the lowest price, you won’t find it here. Still, manufacturer stores are reliable, not the “worst” place.

Buying on Amazon

Amazon straddles the line between convenience and risk. On the plus side, it’s fast, competitive in price, and offers frequent discounts. But there are pitfalls:

Third-party sellers: The biggest issue is the presence of unauthorized sellers. Customers regularly report receiving refurbished or counterfeit phones sold as new.

Open-box trickery: Some phones are returned items resold under “Like New,” but may arrive with missing accessories or improper resets.

Lock confusion: Phones listed as “unlocked” sometimes arrive carrier-tied, leaving buyers with a frustrating return process.

Amazon can be great for seasoned buyers who carefully vet sellers and check for the “Ships from and sold by Amazon.com” label. But for casual buyers, Amazon can quickly turn into a nightmare.

Smartphones on eBay

Buying phones on eBay is even riskier than through Amazon. While bargains abound and used or refurbished models can be far cheaper, the disadvantages are hard to ignore:

No guaranteed authenticity: Fraudulent listings, counterfeit devices, and nonfunctional units are common. eBay’s buyer protection helps, but not without time, hassle, and potentially weeks waiting for refunds.

Hidden defects: Many listings for used phones don’t disclose weak batteries, cracked screens, or water damage.

Inconsistent warranty coverage: Unlike manufacturer-direct purchases, most eBay phones come without reliable warranty support.

While power buyers who know how to vet sellers may score deals, for most people eBay ranks very high on the “worst” list. This reminds me of the sad story of Kelly Filkins, a 26-year-old woman who got slammed by Judge Judy for taking $476 dollars for a pair iPhones advertised on eBay, and mailing the buyer just a PICTURE of the phones. Watch this classic Judge Judy episode from 2007 for the greatest barbecuing of a dumb crook in the history of television.

“Sell/Buy a Phone” Outlets (Gazelle, Swappa, EcoATM)

Specialized resale outlets like Gazelle or kiosks such as EcoATM market themselves as convenient digital pawn shops. Their claimed advantages are simplicity and speed, but real buyers often get a raw deal:

Overpaying for old models: Prices are often significantly higher than what comparable used phones cost elsewhere. A 2-year-old iPhone at Gazelle may cost nearly as much as a new one with a warranty directly from Apple.

Condition mismatch: What’s described as “Good” condition may arrive with deep scratches, battery issues, or screen burn.

Terrible resale trade-ins: If you’re trading in your old phone, expect rock-bottom offers compared to direct manufacturer trade-in programs.

Minimal support: If you get stuck with a dud, support is slim, and warranties are often very limited compared to buying new.

Swappa, another outlet in this category, works as a middle ground. It allows peer-to-peer sales with verification, but it still inherits risks of used-phone defects and minimal guarantees.

The Walmart Paking Lot

This should probably go without saying, but buying a smartphone from someone in a Walmart parking lot, a flea market, or a random person you met online is even riskier than all of the above mentioned options. These are sometimes called “gray market” or “meetup” transactions and carry unique dangers.

You have no recourse if scammed. There’s no warranty, receipt, or support; if the phone is defective, counterfeit, or stolen, you're out of luck. Sellers may offer phones that don’t work, are blacklisted, or that were acquired illegally. Activation may fail, leaving you with an expensive paperweight. Keep in mind also that meeting strangers in parking lots can be dangerous. There are risks of theft, fraud, or even personal harm, especially in unfamiliar or poorly lit areas. Always choose a safe, public meeting spot like a police station with video surveillance, and avoid cash transactions.

So, What’s the Worst Place to Buy a Smartphone?

Ranking all the options, here’s the breakdown:

• Carrier stores: Worst for price and contract lock-in.


• Big box stores: Better, but still plagued by upselling and hit-or-miss expertise.


• Manufacturer online stores: Safe and reliable, but not the cheapest.


• Amazon: Convenient but plagued by counterfeit/unauthorized sellers.


• eBay: High fraud and defect risk.


• Gazelle/phone resellers: Overpriced, low trade-in value, poor quality control.


• Stranger in a parking lot: Most risky option due to fraud, danger, and lack of recourse.

Taking everything into account, the worst place to buy a smartphone depends on what you value least: If you hate overpaying and getting no support, Gazelle and EcoATM-type outlets rank the lowest. If you fear fraud and hidden issues, eBay (and that random guy in the parking lot) are the bottom of the barrel.

For most average buyers, though, the absolute worst is probably carrier-branded stores, because they combine high prices, forced contracts, and restrictive device locks. You’ll usually pay more, lose flexibility, and get upsold into features you don’t need.

So Where Should You Buy?

Okay, so all of the options have pros and cons, but you have to pick one, if you intend to make a smartphone purchase.

For me, it all boils down to trust. I've bought phones at all of these places (except the Walmart parking lot), taking into account that even a somewhat risky purchase can turn out to be a good bargain. Personally, I've had good experiences with sellers on Amazon, eBay and Swappa that have a good reputation and positive reviews. But I never buy the latest, greatest, top of the line phone. I'm currently carrying a Samsung Galaxy S22 that I bought a year ago for about $200. I've found that buying a model that's two generations removed from the current flagship phone provides all the features I need at a decent price point.

Where have you bought a smartphone? And what was your experience? Post your comment or question below...