GPS Tracking Hardware: How to Choose the Right Trackers

When selecting GPS tracking hardware, consider the type that is compatible with your tracking business and your customers' needs, determine if the trackers are compatible with the protocols of your platform (which helps prevent vendor lock-in), assess network capabilities for the areas you serve, and standardize on a narrow set of capabilities that you can effectively support. The key for a reseller is not the one single “best” tracker, but a small set of reliable trackers you can stock, install, and support on all your customer segments, with multiple suppliers so you retain pricing leverage.

This is a guide for GPS tracking resellers, dealers and operators deciding on what hardware to sell—not for end users selecting one device. It includes the main types of trackers, the protocol compatibility decision that helps to safeguard your margin, match hardware to customer segments, and what to standardize on. On the cost and pricing side, check the startup cost guide and how to price GPS tracking services.

Key Takeaways

• As a reseller, select a limited, dependable set of trackers to support — not the best device. 
• Most important criterion is the protocol compatibility with your platform: It means no hardware lock-in and margin protection. 
• Connect the device type (OBD, hardwired, asset, OBD/CAN) with the customer's vehicle and use case. 
• See if the network is compatible (4G/LTE, NB-IoT; 2G is being phased out in many regions) with where your customers operate. 
• Get multiple sources to retain leverage prices and availability. 
• Using a limited number of devices you are familiar with reduces your support and inventory requirements. 

What GPS Tracking Hardware Does a Reseller Need to Choose?

A GPS tracker is a cellular device that reads a vehicle's location and status, which a reseller does not need to select a single universal device for but must choose from a collection of such devices for customers. The practical decision has four parts: the device types (how they install and what they read), the platform for which the protocol is compatible, the network fit (cellular technology available where your customers operate), and features (sensors and inputs your customer requires).

Of the four, the one that will most impact your business and not your end user is protocol compatibility; it determines the ability to purchase hardware from any supplier or from just one supplier. Each of these is discussed below, beginning with the Device types and then the Compatibility decision that lies behind all of these.

The Main Types of GPS Trackers

There are four types of vehicle and asset trackers, most of which are appropriate for a specific customer and application. The first selection step is the matching of the type to the vehicle of the customer and to his use case.

• OBD-II plug-in trackers are the easiest to deploy—the customer or you can plug them in, they are easy to transfer from vehicle to vehicle, and are appropriate for light-vehicle fleets and quick deployments.
• Hardwired trackers are hidden, connected to the vehicle's power, and are ideal for situations in which tamper resistance or a permanent installation is important.
• Battery-powered / asset trackers have no power source, and are used for trailers, containers and equipment, with a compromise of battery time against frequency of reporting.
• OBD/CAN data devices are more costly and complex to integrate and read engine and vehicle data for richer telematics, for larger or data-driven fleets.

A reseller will usually have two or three of these in stock for the typical segments, but not the entire lineup.

Why Protocol Compatibility Is the Most Important Choice

For a reseller, the most critical piece of hardware is, is the hardware that you are buying compatible with the protocols of your platform – or will you be stuck with one supplier with one price? A GPS protocol (e.g. GT06/Concox, Teltonika, Queclink, Ruptela) is the “language” used by a device to communicate with the server – the platform must “speak” it in order for the device to function.

It is much more important to your business than to your end customer. The same thing independent guides say about having a platform with a wide range of tracker support, allowing you to purchase trackers based on pricing and availability from numerous manufacturers, then have the customer's existing devices when you assume ownership of their account, and follow them to a different supplier without re-platforming applies in this case.

The opposite is a platform that offers only a limited range, or just proprietary hardware, which you can't source on and you make less money. Check platform supported devices before you make a hardware line decision and look into whether any new protocols can be implemented upon request. This is on the hardware end of the larger white-label vs self-hosted and platform decision.

Matching Hardware to Your Customer Segments

There is no one right tracker — hardware that will work for a light-vehicle delivery fleet will not work for a container operator. A practical mapping:

The reseller takeaway: Don't let the hardware dictate the segment, let the segment dictate the hardware. If you're serving one or two, then you make it a habit of using a couple of devices; if you're serving several, then you add a bit more variety, but always with the support burden of the added devices in mind.

Network Compatibility: Don't Overlook Connectivity

The reliability of a tracker depends on the cellular connection it has, so ensure that the network technology matches that of where your customers are. The key checks: Make sure that the device supports current networks (4G/LTE, and NB-IoT/LTE-M for low-power asset use) and be cautious with 2G-only devices as 2G networks are being switched off in many regions – as noted by both the hardware and platform guides, it's important to research which infrastructure your customers will depend on for the long term.

If you have customers who are using your service in different regions or countries, think about multi-network or roaming SIMs to ensure that no gaps in coverage compromise your service. Connectivity is a recurring cost and is also a technical fit; the SIM/data side is covered in the startup cost guide.

How to Choose a GPS Hardware Supplier

In addition to device, the supplier relationship has an impact on your reliability and margin, so consider supplier as carefully as you do devices.

• Protocol compatibility with your platform — preferably confirmed with open protocol documentation for integration testing.
• Firmware stability — the stability of the firmware is important as much as the spec sheet; unstable firmware leads to support burden.
• More than one supplier — get a device type from at least two suppliers which provides a guarantee of price and availability.
• Support and documentation - a real help from the supplier saves you money throughout the life of the device.
• Network/certification fit - devices that are certified for networks and regions you serve.

Confirm compatibility against your platform's supported-device list before committing to any supplier, and test a small batch before a large order.

Common Hardware Mistakes Resellers Make

• Choosing hardware before confirming platform compatibility - check protocol support first, or you could end up with hardware that you can't use.
• Locking to one supplier —it takes away pricing leverage; get each type of device from different suppliers.
• Stocking too many models — Each additional device adds to inventory, training and support expense
• Ignoring network phase-outs —Widely ignoring network phase-outs, 2G-only devices are not a safe gamble in many regions — see the roadmap. 
• Buying on unit price alone the best acquisition is the one that offers the most stability, support and compatibility with the purchase of firmware.
• Skipping a test batch — always validate a device with your platform and a real install before ordering at volume.

Frequently Asked Questions

How do I choose GPS tracking hardware for my business?

Find out which device type (OBD, hardwired, asset, OBD/CAN) is suitable for your customers' use case and vehicles, verify trackers are supported by the protocols of your platform to avoid locked-in solutions, and standardize on a small and reliable range of devices from multiple suppliers that are compatible with your regional network. The goal for a reseller is not one “best” device, it's a supportable line-up.

What types of GPS trackers are there?

These include OBD-II plug-in (easy install, light vehicles), hardwired (permanent, tamper resistant), battery-powered asset trackers (trailers, containers, unpowered assets) and OBD/CAN data devices (rich vehicle data). They each cater to a particular section of customers and to a specific installation.

Why does GPS tracker protocol compatibility matter?

It is a determinant of whether you can get hardware from any supplier or only from a single one. A protocol (GT06/Concox, Teltonika, Queclink, Ruptela) is a way that a device communicates with your platform – if your platform has a lot of protocols, buy on price and availability, and retain your customers' existing devices. If you have narrow support, you have limited choices and margins.

Should a reseller stock many tracker models or a few?

Usually a few. Every new model that you add increases the amount of inventory you have to fund, as well as an increase in the amount of firmware to be learned and number of support cases to manage. Employing one device per segment you serve (standardized on one device across all segments) helps keep your cost to serve down and helps keep things reliable — only increase the number of devices when actual customer need requires it and the platform supports it.

Does 2G GPS hardware still make sense?

Be cautious. There are many areas where 2G networks are being retired, and 2G-only devices represent a dwindling long-term investment. Look for 4G/LTE, NB-IoT or LTE-M for low-power asset tracking, and confirm your customers' network roadmap for their operating areas.

Do I need to manufacture GPS trackers?

No. Resellers get compatible trackers from known hardware vendors and combine them to a supported platform. The one thing you do need is all of the devices you have purchased have to work with your platform — broad protocol support allows for flexible sourcing and competition.

Conclusion

The decision to become a GPS tracking hardware reseller is not really a spec comparison but rather a business decision: go with device types that fit your segments; ensure all trackers are compatible with your platform protocols, to prevent lock-in; evaluate network compatibility for your regions; stick with a limited range of devices and standby from multiple vendors that are proven to be small & reliable. The winning device is the one that you can obtain competitively, repeatably set up and sustain support beyond the customer's life — not the one that offers the greatest list of features.

Always begin with protocol compatibility; it's the decision that will save your margin. Next steps: Check with your platform what they support on their supported devices page and understand the platform choice behind it in white-label GPS tracking software, a and model the cost of hardware and connectivity in the startup cost guide Once you're prepared to compare the device support for a platform with your plan, book a walkthrough.