One of the easiest businesses to start if you are looking for a side hustle is the reselling business.
This is because you don’t need an MBA to effectively run a reselling business. In fact, most people start by selling second-hand clothes and still make huge profits.
Now the issue is how to become a reseller.
Resellers buy products at a cheap rate and sell them to make a profit. It is a great option for anyone who wants to start a small business because you do not need a lot of money to get started.
Additionally, you can skip the manufacturing process and just buy items in bulk and resell to make a profit.
So, in this article, you will learn what reselling entails, how to become a reseller and several reselling business ideas. Look at the table of contents below.
What Is A Reseller Business?
Reseller business is a business where you resell products bought from manufacturers to consumers. These products can be anything and you can get them from anywhere.
The reselling business is a good option for those looking to make extra cash on the side or manage a small business as it doesn’t require a lot of capital.
As a reseller, you are the main bridge between the producer and his customers. You mustn’t make your own products but you can thoroughly select the products you have an interest in reselling.
How To Become A Reseller?
You can become a reseller easily following these simple steps
#1. Decide What To Sell
The first step in becoming a successful reseller is deciding what you want to sell. Trying to sell all products at once can be very overwhelming, as the adage says ” Jack of all trades, master of none”.
Whether you want to resell clothes or resell electronics, it is important to choose something you are knowledgeable about to improve your credibility in the eyes of your customers. After you have decided, carry out your research.
Research the Market Value of the Product
After you have decided which product you want to resell, it is important that you carry out market research to determine its market value as you wouldn’t want to resell something that people do not want.
To do this effectively, you can search on Amazon to see the current prices for which such items are being paid for. You can even go on eBay to see how much it sold them for in the past. Also, check for particular brands with the highest sales for that product.
Many mobile eCommerce apps allow you to see several price listing of the same product. This can aid in your market research before you purchase the items.
Source For The Product
After carrying out the market research, you can go further to source for these stocks you have decided to sell. You can look through the newspaper to find garage sales ongoing. Many garage sales list the type of items they will sell so you won’t have to go to every garage scale. You just need to go to those that have the items you have decided to sell.
You can also check online market places for cheap deals on products you want to resell that would bring profit. Then reach out to the sellers to see if the products are still available for purchase.
Don’t forget the clearance sales in stores in your area. That can be a good place to source for products.
#2. Create An Online Reseller Account
Now your products are ready, the next thing is to create an online reseller account where you can put your product for your customers to see and a payment procedure. There are several eCommerce stores where you can resell products easily and at low or no cost like Amazon, Shopify, eBay, etc.
For Amazon, you can scroll to its home page and click on “Sell on Amazon”. You can do that here and follow the instructions to get started. You don’t need an additional payment option on Amazon as you would be paid directly into your account.
If you would like to sell on eBay, you can click here and follow the instruction to get started. eBay doesn’t charge you for listing items, but they take a 10% fee from all last sales.
For Shopify, you can sign up here to sell online.
If you will use PayPal as a payment option for either of the two, they may charge an additional fee on sales which is between 2-5% of the money you earn.
#3. Stock Your Online Store
Now you have created an online store, you can stock up on all the products you have purchased that you intend to resell. Price your items based on what similar products have sold for. To do this, you can look online to see what their current prices are or check on eBay to see the prices those items have sold for.
While setting your price, ensure you add the cost of shipping and other expenses you might incur. A good hack to this is that you can list your items at a slightly lower rate than other competitors as long as you will make a profit after Everyone loves a good and affordable product.
Additionally, while setting up your items, give an important detailed description of the product. Like the sizes, colour, brand name so customers can find it easily. Add at least 2-3 high-quality photos of your products as this will boost your chance of making sales.
People are more likely to buy something they have seen. You can even add your own branding and packaging and sell them under your own brand.
#4. Promote Your Business
As soon as your business has started, you need to let many people get to know about your products. A good way to get this done quickly is through Social Media. Post the links for your products on social media sites or blog posts to help drive more traffic to your items. You can even pay for ads if you can.
Make sure it’s easy to order for products. Send out the orders as soon as you receive them so your customers get their items quickly.
To ensure your product gets to the customer, you can use a tracking service. You can ask for buyer feedback after you make a sale.
How Can A Reseller Make Profit?
To make profit in a reselling business. You can do these;
#1. Create Ads
Facebook ads are the most popular choice for resellers. With Facebook ads, customers can see your product’s ad as they scroll through their feed. You must try different products to create money-making ads.
As your reselling business grows bigger, you can offer to run ads for others generating profit for yourself
#2. Price Of Product
The price of your products can determine if you will continuously make a great profit. Your product price should not just include the cost of goods. It should cover the cost of expenses, and marketing employees (when you hire).
As long as your product has a good market fit, you don’t need to underprice it.
Why You Should Become A Reseller
You can decide to become a reseller for a couple of reasons. It’s a job that allows you to sell products in demand at a price you set yourself.
Also, the reselling business has low financial risk. As a new or budget-conscious entrepreneur, you wouldn’t need to buy bulk inventory or pay high shipping fees. This makes the setup cost low.
As a reseller, you can choose to create your own products, package them, and market using your own defined strategy. The good thing is that this process is automated and you don’t have to do it all the time. Thus, helping you to save time.
The reselling business also allows you to expand into different niches without having to buy additional inventory. You can increase your reselling products at will.
Bonus Tip: If you are thinking of venturing into a resell business, some resell product ideas you can try out include; Clothing, Cosmetics, Beauty, and Accessories.
To Wrap It Up
If you follow these guidelines carefully, I can now say that you are definitely on the right track to becoming a reseller.
I hope this helps you make a moral decision.