To-Do List For Starting A Successful Reselling Business
If you’re looking for ideas on how to start a new business, or turn your hobby into one, reselling might be the right fit for you. The great thing about the reselling business is that it’s both easy and accessible and you don’t have to manufacture your product to start.
You can buy a product directly from a manufacturer, vendor, or wholesaler at a lower cost and then sell the item with a higher price tag, both online or offline. Simply put, it follows the well-known business model – ‘Buy Cheap, Sell Dear’.
However, when starting from square one, there are certain things you need to do to launch your reselling business into a successful operation.
In this article, we go through the basics of starting a reselling business to help you generate remarkable profits.
Decide What You Want to Sell
The first step when embarking on the journey of reselling is to consider what product you want to resell. You don’t need to be a product expert but use the knowledge you have to get a sense of what prospective customers are looking for. A certain level of emotional investment and motivation is crucial to make your reselling business a success.
You’ll have to find a supplier willing to work with you in your niche. Be open and don’t hesitate to ask for the price of a specific item and the shipping costs before getting it in bulk. If, for instance, you want to resell refurbished electronics, make sure you opt for reputable wholesalers like Go Wholesale, which offer excellent volume discounts and low minimum order quantities. Such a reliable supplier will simplify the company’s order processing and help your business grow.
Find Your Marketplace
You will also need to do some in-depth research and understand the market landscape when choosing your product to assess whether it has the selling potential. Choose and master one marketplace before expanding your operation and when you feel that you’re doing well in one marketplace, slowly and confidently start building up another one.
Also, think about the demographics you’re targeting and try to understand their needs. Look at sites like Amazon or eBay and see how well the product you intend to resell is doing. This is the best way to see if the product in mind has a good profit margin and is worth investing in.
Write a Business Plan and Start the Application Process
Like with any other business, your ambition needs to be formalized with a proper business plan. Creating a business plan helps you develop your business idea and set goals for your business. You can also use the business plan to sell your idea to investors, suppliers, banks, and other interested parties.
The document can look different but make sure that it contains essential parts about the company’s idea, customers, and business model.
An online application is usually required to start your reselling business. You should be prepared to submit all relevant information about your business profile, including company size, number of employees, selling channels, web presence, etc.
All of this documentation will help the manufacturer decide whether you’re a good fit for their program or not.
Register Your Business
Since you’ll purchase from manufacturers, distributors, or wholesalers and then resell for a profit, as a reseller you must register your business with the state business licensing office and obtain a permit.
The type of permit and license depends on the nature of your business but also on the laws where you’ll operate since states regulate businesses differently. In addition, you’ll also have to register with tax authorities to collect and submit taxes on the goods you sell.
Establish Good Relationships With Customers
Being a successful reselling business largely comes down to creating and maintaining strong relationships with your customers. Today, the number of reselling businesses is high and you need to build trust that creates security for the customer to visit regularly.
Of course, it’s also about offering a wide and qualitative range at a good price with fast deliveries, but without a good relationship with customers, it will be difficult to succeed.
Maintaining continuous contact with customers is important, but doing so successfully can be a balancing act as it’s about creating valuable content for your customers on your various platforms and mailings.
By figuring out the basics of starting a reselling business, you’ll be better prepared to explore the opportunities this business provides.
The secret formula for any successful reselling business is consistency, so try to put a bit of effort each day to grow your reselling business and in no time, you’ll be sure to reap the benefits.
Dave is a serial entrepreneur who co-founded Shortlist in 2018, a marketing un-agency that serves as an outsourced dedicated marketing team. He has also co-founded Less.churn, a churn reduction app, prior to selling it in 2018. In 2012, he quit his job to travel the world, and has visited over 65 countries.