NOTE: Before you start your business, you should read the page on this website entitled “things to think about before you get started.” After you have taken the preliminary steps for starting any business, you can take the specific steps outlined below.
In a reselling business, you resell items bought from manufacturers or consumers to other consumers. This is often done through an online reselling store. There are so many things to choose from, when deciding what to resell — from clothes to fidget spinners. For guidance, check reselling websites such as eBay, Craig’s List, Facebook Marketplace and NextDoor to see what kind of items show up most often. This will give you an idea of what items are in demand – and most likely to sell.
It is best (certainly at the outset) to focus on one thing, or at least one category of products. Think of this as a service — you’re helping people to find things that they want and need. Let’s say you focus on used gym shoes. If you go out and find a bunch of them, bring them all together in one place (and clean them up a little bit), you’re giving someone who is looking for gym shoes a centralized place to find a variety of gym shoes for a low price.
That’s the kind of service a lot of people will pay for.
— A quick start: After deciding what to resell, you can start selling shortly after setting up your reselling business.
— Less stuff: You don’t have be stuck with a bunch of inventory crowding your space, especially if you use drop shipping. (More on that below.)
— You will need to have good customer service skills. And being patient with your customers, especially the ones who are more demanding, isn’t always fun.
How to Get Started:
You can setup your online reselling business by using online sites such as Shopify or BigCommerce to show off the products that you’re offering.
Then, use drop shipping. When you sell a product, buy that item from a third party and have it shipped directly to the customer.
You can also find new items on clearance or on sale at a local store, purchase and then re-sell online.
How Much to Charge:
Prices for resold items vary widely, depending on the product. Check out your industry’s standards for product pricing. Your items’ costs shouldn’t just cover the cost of goods. Your charges should also cover your additional costs, such as marketing, any website maintenance fees, etc. If you have created a business plan, you will have a goal for how much additional costs your business will have each month, how much you can reasonably expect to sell and how much to charge to cover those costs.
Taking it to the next level:
Ready to upgrade your reselling business? Here are some tips.
- Create ads. Facebook ads are a popular choice for resellers.
- Consider blogs or videos. You could create videos or start a blog to help get the word out about your reselling business.