Each day, more people are benefiting from new opportunities in this connected world through novel jobs and business opportunities. Among those, becoming a reseller is one of the most sought-after ways to make money. It can be done as a side hustle or as a full-time activity, and in many different ways.
Being a reseller is like having the goose that lays the golden egg or complete nonsense depending on who you ask. In truth, it is probably neither of those as its success depends on several factors. As such, it’s important to know where you are heading if you are thinking about becoming a reseller.
Once a reselling business takes off, it can run smoothly and present excellent profits. That is the reason so many people want to become resellers, and it is a good one. However, becoming a reseller is not easy work, it involves a lot of research and getting to know the craft. Reselling will also require you to be organized and put in some serious time. That being said, a lot of people make a living out of becoming a reseller. Some have even made large profits out of it while doing something they enjoy.
Many skills can be helpful when reselling for a profit, and some of yours can probably be put to use. Maybe you have experience in online platforms or knowledge about a type of product. That surely helps if you shape your reselling business around it. Over time, you will develop the experience to get into different products, platforms, or business models.
If you are looking for information on how to become a reseller, you have come to the right place. In this article, you will learn about the most important considerations for getting into the reselling business. First, you will learn how to create a business plan to guide you into making a profitable activity out of reselling. Then we will go over where to buy, where to sell, and other related information about this activity. Finally, you will see some extra ideas to consider in your reselling business. By the end of this article, you will be able to form a strong plan to become a successful reseller.
How to Have a Solid Reselling Business Plan
If you are considering becoming a reseller, you should create a well-thought plan of how the business should be conducted. This includes how much of your money and time you can afford to spend on this project. It must also mention how to obtain new products and the total starting capital. When you finish documenting this, you should have a clear idea of the resources you have and those you lack.
Contacting a Certified Public Accountant (CPA) is important to realize how your project can come to life. These professionals will help you comply with tax policies, and to know the limitations of your business. In some cases, they may suggest forming a Limited Liability Company or other business structure. Make sure to ask about buying and selling to states different than your own, and the products you can resell.
Your business plan should also consider how you will track expenses and incomes. Planning that beforehand will save a lot of hassle, as it is vital for making profits and requires significant time. In the beginning, this can be done in spreadsheets, but as your business grows you may want to consider alternatives. At some point, budget management software becomes inevitable. Even if you have to pay for software, sometimes that cost is marginal considering the time it saves.
All expenses must be taken into account to measure the success of a business. This includes fuel, shipping costs, packaging and paperwork costs, taxes, and your own time. If you are using your own vehicle, make sure to estimate the wear and tear too. The only way towards an organized, stable business is through taking all of those seriously.
Having a precise inventory is key to saving time and knowing the status of your stock quickly. A well-done inventory also indicates where each item is, helping save a great deal of time.
Depending on the size of your operation, you may need to look for additional storage and that can be costly. Even if you store products in your own house, you may need to work a little bit to assure storage space. Putting together racks or other structures can be helpful to maintain your stock safe and easily accessible. See how you can include this in your business plan, as it will surely require a portion of your time.
Being a reseller also means you have to be on the lookout for new opportunities. But when these opportunities present themselves, they may require sizable capital to be secured. They may also ask for immediate action on your part, such as traveling on short notice or attending unexpected meetings. This means you have to plan carefully your resource allocation. Save some money whenever possible and keep your schedule free for these random calls to action. Having access to credit can help cover these expenses too if necessary. As always, if you use credit you should be aware of due dates and interest rates and include them in your business plan.
By the end of this phase, you should have a clear budget and a procedure to get into action. Maintenance of these also takes time, so make sure to review them at intervals of your choice.
What Products Can You Invest in to Become a Reseller?
There is no end to the list of products that can be bought for reselling. Of course, some calculations must be made before deciding to buy a product. You have to do some research to determine the market price of the item in question. Profit margins have to be carefully considered, as well as a sales forecast. Predicting how sales may go helps approach an educated guess regarding how your earnings will return.
Among the many factors to consider, think about the requirements each type of product will bring. Some products are easier to sell than others, helping money flow through your reselling business. Other products can also bring inconveniences, such as being difficult to handle due to size and weight. Some products will be easy to sell locally, while others may depend heavily on shipping. Consider other costs related to the particulars of specific items, such as packaging and shipping costs.
One of the starting points to look for products for reselling is by finding suppliers of products you know well. If you have knowledge about a particular industry, type of product, or service, that can give you a couple of ideas. Possible products extend far beyond tangible goods, and this is truer every day. A lot of people make a living out of reselling digital assets such as hosting services or domain names.
This article will focus on those wanting to become resellers of physical products. However, some of this advice can work for those inclined towards trading digital tools. Follow along to see where you can buy products for reselling, and what to consider before doing so.
Where Can You Buy Items for Reselling?
There are several ways to obtain products for reselling. Buying products from wholesale is probably the most obvious one, but that may not be practical for beginners. Dropshipping suppliers like Alibaba can be great at times. Another alternative is to keep an eye on retailers and eCommerce platforms for items that are being sold below market value.
Buying wholesale products involves requirements that make it somewhat difficult under certain conditions. Firstly, the capital needed will be significant as usually, these have to be bought in relatively large quantities. Then, transportation and storage space have to be considered, as this method will often force you to have stationary stock.
Another way to find products is by searching through Facebook Marketplace, eBay, Amazon, and other websites. This usually involves a lot of browsing and comparing prices. You have to keep in mind that sometimes these searches will not be fruitful. In fact, you can face that issue for extended periods at a time. While going through one of those, it’s important to keep a calm head and stick to your business plan. Too often, we’re tempted to make a move and end up overpaying for products.
Another resource that is often overlooked is participating in auctions. There, you may find both used and new products of a very wide variety. You probably know eBay does very well in this business, but there are several alternatives. Buying at auctions often requires somewhat large amounts of money in a short time but can be very profitable.
BidSpotter is an auction site created to sell business equipment, where you can bid for free. This company moves a huge amount of products from many categories each year.
If you are interested in luxury and collector items, Sotheby’s is one of the leaders at that. Being the host of 600 auctions each year, this site knows auctions. There are many other auction sites to consider, and you can look for local auctions too for other opportunities.
It’s worth keeping an eye on some or all of these depending on your strategy and possibilities. Make sure to review your options periodically to stay updated.
Where Can You Resell Products?
A large part of a reseller’s job involves publishing products. This can be done through a large variety of different platforms, and each has its own details. You must consider fees and possible audience for each platform in order to know what to expect. Check what conditions each of them requires for sellers.
While this is not a hard problem, it may take time to figure out the ins and outs of each service. With that in mind, it may be better to focus on them one at a time. Once you feel more comfortable, you can expand and create accounts on other sites.
To become a good reseller you must be able to portray the items well in this publishing process. A part of that involves taking good photos, learning about the products, and sometimes a little additional work. If products have a value that may not be obvious to potential buyers, it should be stated or shown.
Learning to differentiate them from similar products is also very useful and helps when guiding customers. Digital marketing is an extensive field with a lot of knowledge that can be put into use. You can find a lot of information online regarding how to sell on eCommerce sites.
In general, whatever media is used to show items must be clear and easy to follow. Whether it is photos, video, text, or a combination of those, they must be used with proper reasoning. Descriptions should include good information and be specific about the article and its conditions. If the material you have is not enough, you may need to search online for better pictures or information.
The way in which this information is portrayed and accessed is different in each site and app. Therefore, you should become familiar with each platform’s workings. This could definitely be a deciding factor in some sales, as it saves time and helps buyers make a decision.
Many things can be sold through Amazon and eBay, but remember that these are not the only options. These two are worth knowing well, as they represent a huge portion of the market. However, there are some special cases in which you may consider other alternatives.
Selling on sites that focus on local exchanges like Facebook Marketplace or Craigslist can also be a great idea. Saving on delivery expenses and time can be huge depending on the article, not to mention fees. For example, if you are trying to sell used products these are definitely worth your time. In fact, you can sell all sorts of items through these platforms. Just check out the huge variety they offer and see it for yourself.
For some categories, specialized platforms may exist, and could work better than large general eCommerce sites. Ruby Lane and Etsy are sites dedicated to antiques and vintage items and have a large user base. Chairish is a platform that specializes in furniture and home decor and enjoys a lot of traffic and exchanges. If you have products that could be part of a particular market, you should search online for services dedicated to them.
Another way to connect with customers is through your own brand on your own pages. Platforms like Shopify can help you create an online shop to show your products in little time. There are many other ways to set up an online shop, and that is surely something to consider. You can also use social networks and other platforms to gain brand exposure and show what you have to offer.
What Other Things Do You Have to Consider to Become a Reseller?
Every business will face unexpected expenses, as well as gains and losses. In order to keep those surprises to a minimum, planning has to be done with adequate detail. We will put together some of the most important resources that may slow down or damage your operations. However, consider that these are general ideas and your reselling business may face different challenges.
If you are planning on delivering physical products, adequate packaging is almost always a must. Find out the packaging requirements for each product and shipping company to prepare them ahead of time. Packaging supplies are not extremely expensive, but they are versatile and can be stored for extensive periods. For this reason, you may want to get ahead of your needs and buy all necessary supplies for your stock. Having these items in order and saving a safe space to wrap packages is also a good idea.
You should also do some research on what shipping services you may put to use. Local sales can be delivered by motorcycle couriers or similar services. Products sent to farther locations will probably involve other courier-type companies such as DHL, FedEx, or UPS. In each case, study what kind of products you can send, and limitations related to size and weight. You should try to become familiar with the costs involved too, as these can represent sizable amounts.
As with any project, getting to know about the experiences of others traveling similar paths can be extremely helpful. For this reason, you should cooperate with fellow resellers to grow together. Whenever you get the chance, befriend those in the same business, and you can both benefit from sharing knowledge. There is nothing wrong with well-intentioned, honest relationships based on mutual help. This will make your job easier and benefit customers who will tend to receive better attention based on true experience.
In any business that lives long enough, you will see a fair share of bad and good luck. Reselling is not different in that sense, and every purchase comes with its quota of risk. You may miscalculate costs or market prices and see your profit margin shrink, or even disappear. In such cases, your focus should be on getting the best out of the asset in question. This may involve selling for less than you expected, or selling at a time when the market is not at its best. Either way, it is better to accept the fact that some items will sell at a loss.
In some cases, it may be better to donate products that are hard to sell for whatever reason. Make sure you discuss with your CPA how tax deductions work to plan accordingly. Besides helping someone through the products you donate, you can save a considerable amount of money in taxes.
Lastly, consider other ways modern technology can help you keep your business functioning smoothly. Software for Customer Relationship Management (CRM) can also prove very useful depending on the type of business you run. Hardware like data collectors, barcode scanners, and thermal printers can help a lot for storing items in an orderly fashion. Running ads online can help improve sales too, and there are endless tools to do that well. Combined with well-made content such as digital storytelling multimedia, it can help communicate with thousands or millions of potential customers.
After reading this article, you are better prepared to face the reselling business with clear information. This may not be everyone’s cup of tea, as it often involves hard work and dedication. However, if you are searching for how to become a reseller you probably have a lot of what it takes.
There are many ways to start reselling without investing large amounts. However, time is always a limited and valuable asset. In any case, becoming a reseller can be a gradual process, and you can start small. This is usually a good idea, as ramping up your experience little by little helps avoid many headaches.
By leaning into your strengths, you may think of a few ideas to figure out the best approach. If you are serious about becoming a reseller, you will create a business plan that suits your needs. This includes getting the professional help you may need to comply with all the regulations that can apply.
Once that is done, you are ready to start working. Make sure to keep your business well oiled by sticking to your business plan and budget. Maintain adequate documentation throughout the life of your business, this will provide countless benefits. Once you become an experienced reseller, you will be much more skilled at these tasks.
If you follow these steps closely, you will know how to adjust your reselling business to adapt and overcome. Make sure to do your own research into the particular details related to your products, the platforms you use, and more. As conditions change, you need to stay up to date and maintain your selling channels active. The reselling world is huge and there is always some relevant information to learn or an opportunity to inspect.