Have you ever watched a show like Storage Wars or American Pickers and wished you could make a living finding hidden treasures and reselling them for a profit?
Well, you’re not alone!
Many people wonder how to start a reselling business and profit from interesting finds from garage sales and thrift stores.
Reselling is a growing, profitable small business idea that allows you to turn a passion for finding unique items into a business venture.
With the rise of online marketplaces like eBay, Amazon, and Etsy, starting a reselling business is easy.
Let’s discuss how you can launch your reselling business and what reselling business ideas are out there.
- Reselling involves buying products at a lower price and selling them at a higher price to make a profit or dropshipping products from suppliers.
- It’s a simple yet effective way to earn money- if you can find profitable, in-demand items to sell.
- I’ll talk about two main business models for reselling businesses: flipping and dropshipping.
- Flipping means you buy stuff people want at a low cost and resell it tighter for a profit.
- Reseller business ideas can be found in various niches and industries, from clothing and electronics to collectibles and rare items.
- Dropshipping is a great reselling business where you don’t handle any inventory or buy any products upfront- a supplier handles it all, plus shipping!
- Finding a niche and business model that aligns with your interests can guide your product selection and marketing efforts.
How To Start A Reselling Business
Starting a reselling business is a great way to turn your hobby or passion into a profitable venture.
With the rise of e-commerce, more and more people are choosing to shop online, making reselling a lucrative opportunity.
But where do you begin to start your own ecommerce business?
1. Decide What You’ll Resell
The first step when you’re thinking about starting your own online resale business or launching your ecommerce business as a reseller is to decide what you want to sell.
This is where reseller business ideas come into play for your ecommerce store.
Take a moment to consider products that pique your interest or where you have some expertise – whether it’s fashion, electronics, or household goods.
Research the market demand for these items and determine potential profit margins.
But here’s the golden nugget of advice: keep an eye out for those unique or hard-to-find products with the potential for high-profit margins.
Then, decide if you want to sell new products with dropshipping, flipped items for a profit, or a bit of both.
2. Pick Your Market & Know The Competition
Let’s talk about picking your market and checking out the competition in the world of reselling.
Once you know what products you want to sell, it’s time to scope out the top sellers and see how they run their sites and what products they keep in stock.
Their niche expertise can be a big help here to get your business up and running. Determine what makes them tick, what sets them apart, and why they’re successful.
But here’s where you can really shine – think about how you can stand out even more.
What can you bring to your reseller business that’s one-of-a-kind, super cool, and totally irresistible to your future customers?
3. Make Your Business Plan & Business Model
Once you’ve got a clear picture of your reseller business and the competition dos and don’ts, it’s time to roll up your sleeves and craft your roadmap for success.
This means making your business model and business plan to make sure you’re making money.
Your business model is the blueprint for how your own ecommerce business or online business will run and the engine that drives your venture forward.
The business plan spells out your cost and revenue streams, pricing strategy, and the tactics you’ll use to get the word out about your fantastic products.
It covers everything from where you’ll source your products to how you’ll market them and provide excellent customer service.
Your business plan and model will help you figure out how to make your reselling business survive and thrive for years to come, so don’t skip this step!
4. Source Products To Resell
Now that you’ve planned out your business and money, it’s time to get into action and source those amazing products for your reselling business.
Whether you choose the wholesale route for its cost-effectiveness and higher profit margins or dropshipping to cut startup costs, you’ve got options.
Building relationships with wholesalers and retailers is key to accessing quality products. Be mindful of minimum purchase quantities, which can affect your initial investment.
If you want to get into vintage or cool resales as a flipper, consider exploring trade shows and conferences to find unique items that align with your business vision.
And don’t forget about online marketplaces like eBay and Amazon, which are treasure troves for items to resell.
5. Join A Selling Site
Ready to kick your reseller business up a notch? It’s time to jump onto a selling site.
You’ve got some big players in the game, with sites like eBay connecting you with thousands of people per minute.
And hey, if you’re feeling adventurous, why not set up your own online store? Platforms like Shopify let you be the boss of your own slice of the internet.
But don’t forget about the other cool spots like Etsy, Poshmark, and Mercari. Each has its unique crowd and feel, kind of like picking the perfect spot for your virtual shop.
Before you dive in, do a little homework on their fees and what they need from sellers. You want to pick a platform that fits just right with what you’re selling.
6. List Products For Sale
It’s time to get those products listed and ready to roll for your reseller business. You’ll want to take dazzling photos of your items; clear, well-lit pics work best.
Then, it’s time for descriptions – be honest and detailed about what you’re selling. Buyers love to know what they’re getting, right?
And don’t forget the price – make it competitive, but also make sure you’re not shortchanging yourself so your reseller business still makes a profit.
My big tip- whether you’re flipping or dropshipping, taking videos with your products can give people a new perspective on them.
I think this is especially true for dropshipping; if you’re selling things like cleaning supplies, makeup, clothes, and more, it gives people a new look into what they’re buying.
7. Market Your Business
Time to spread the word about your fantastic reseller business!
Selling online, whether it’s reselling shoes, brand-new items, or vintage items, requires a bit of marketing magic.
Social media is your secret weapon – set up accounts for your resale business on platforms like Facebook, Instagram, or Pinterest.
Share those stunning product photos and interactive videos you’ve taken and engage with your audience.
But don’t stop there. Good old word of mouth is still a winner; networking is pure gold in reselling.
Tell your friends and family all about your venture, and encourage them to share the news with their own networks.
8. Land Sales
Landing sales in your reselling business is about strategy and understanding your market. To start, you need a solid plan for selling your products.
Set competitive prices that also ensure you make a decent profit. This might involve market research to see what similar items are selling for.
Remember to factor in any additional costs like shipping and taxes for flipping businesses that need to package and send everything to customers.
Consider extras and customer service options, like a customer loyalty program, discounts for medical and emergency personnel, etc., to give customers more value.
Finally, continuously evaluate and adjust your strategy. Track which items sell well and which don’t, and adjust your inventory, pricing, and listings accordingly.
9. Grow Your Business
As you gain experience in your new reseller business, consider expanding your product range or finding new sources for inventory to attract customers.
Building a loyal customer base takes time, so focus on delivering quality products and top-notch service.
You might want to explore marketing strategies like email newsletters or loyalty programs to keep your customers returning for more.
And remember, every big business started small, so stay patient and persistent – success will come with time and effort.
Keep learning, adapting, and watching your reselling business grow!
Flipping Vs. Dropshipping
Flipping and dropshipping are two of the most popular ways to make money in resale businesses.
But which one is more profitable? Which one requires less time and effort?
Here are the differences between the two business models and what goes into running your business:
Flipping is a savvy way to make some extra cash if you like the thrill of shopping and finding cool stuff.
It’s all about snagging items for a steal and then selling them for a tidy profit.
You can do this with all sorts of things, whether finding treasures at garage sales, scouting deals online, or even picking up hidden gems at thrift stores.
But here’s the catch – it’s not always smooth sailing.
Sometimes, items you thought would fly off the shelves might take a while to sell. Plus, flipping can be time-consuming, especially if you must fix things before listing them.
That’s where courses like the Flea Market Flipper come in handy. They can provide you with the knowledge and strategies to up your flipping game.
They even offer a free workshop to give you the lowdown on what flipping is and what you need to start.
Dropshipping is a profitable business model that is low risk. It allows you to start a reselling business and sell products online without ever having to hold inventory.
You use a supplier to handle inventory and shipping and simply list things for sale on your site and market your products with buyers.
The beauty of reselling is its versatility and low entry barrier. Forget about the need for fancy offices, storefronts, or a fleet of employees.
With just an internet connection, a dash of research, and some time, you can dive right into it. It’s more hands-off than flipping, and you can do it all from home.
Not sure how you can get started? Check out this free workshop from Drop Ship Lifestyle about launching this style of resale business.
Reselling Business Ideas
Discovering the best reseller business ideas can lead to exciting opportunities.
Let’s explore some lucrative niches in the reselling world offering the best things to resell:
Electronics are a fantastic choice for anyone diving into the reseller business – they’re always in demand and offer a real niche market opportunity.
Haven’t you seen people reselling their old phones and laptops online? Imagine the resale value of any electronics you get your hands on!
Whether selling refurbished gadgets like laptops and smartphones or offering brand-new, unboxed items from wholesalers, there’s a lot of potential for profit.
And once things get going, consider expanding your range to include accessories like earbuds, chargers, and cables.
Clothes & Sneakers
Clothes and sneakers offer a great opportunity for resellers, especially if you have an eye for fashion trends.
You can choose to sell brand-new items from clothing manufacturers or seek out vintage finds at yard sales and flea markets.
It’s crucial to select items your customers will love, considering their condition and resale value.
Venturing into the world of vintage finds is an exciting niche for those who love the past.
I’m talking jewelry, decor, cooking accessories, furniture, lights, and more. There’s a market for many types of vintage items, and you could profit from many of them!
You can source unique items from an estate sale company or estate sales directly, garage sales, thrift stores, consignment shops, or antique stores.
The key to success is understanding each item’s historical and cultural significance to describe and price them accurately.
Subscription boxes are a fantastic approach for building a dedicated customer base in your reselling business.
Clothing, cooking tools, bedding, etc., could all become themed subscription boxes for customers.
The beauty of subscription box businesses lies in offering a unique, curated experience around various themes, whether it’s beauty, self-care, wellness, or food.
You can source items from wholesalers or incorporate multiple thrift store finds that go together.
Fine Arts Resale
This business model involves acquiring artworks from various sources such as auctions, estate sales, or directly from artists and selling them at a profit.
It’s a niche that requires a good understanding of art, its history, and the current market trends.
There are various types of art you can focus on, including paintings, sculptures, prints, and more. You can specialize in a particular style, period, or artist or offer a wide range of art pieces.
Starting a fine arts resale business requires some initial investment to acquire the artwork.
However, the potential returns can be quite high, especially if you manage to find a rare or highly sought-after piece.
Attending art shows, auctions, and galleries can help you network and find potential sources for your inventory.
Prices can fluctuate based on various factors, including the artist’s reputation, the overall economy, and current art trends, so stay informed to get good prices and resell artwork.
Best Sites For Resellers
If you’re serious about reselling, you might want to consider setting up your own online store using the Shopify platform.
Shopify is a comprehensive e-commerce solution that allows you to create a professional-looking website, customize your products and pricing, and manage your inventory and shipping.
It can be a great option if you have a large inventory and want to build a loyal customer base.
Another advantage of Shopify is that it integrates with many payment providers so that you can accept payments from customers worldwide.
Shopify does charge a monthly subscription fee, but many resellers find that the benefits outweigh the cost.
eBay is a well-known online marketplace for buying and selling products, including used and new items.
It’s a popular site for flippers and all sorts of sellers online because of its large reach and versatility.
As a reseller on eBay, you can benefit from a large customer base, an easy listing process, and various tools to help manage your online store.
However, eBay also charges seller fees, which can impact your profit margins, and you may face competition from other sellers on the platform.
Despite these challenges, eBay remains a popular choice for resellers looking to reach a wide audience and sell diverse products.
If you’re looking for a more local approach to reselling, Facebook Marketplace might be a better option.
Unlike eBay, a global platform, Facebook’s Marketplace focuses on connecting buyers and sellers within their communities. This can be useful if you’re selling items that are difficult or expensive to ship.
Another advantage is it’s completely free to use – no listing fees or commissions.
To start, create a Facebook profile and navigate to the Marketplace tab.
You can then list your items for sale, set prices, and communicate with potential buyers through Facebook Messenger.
What is a reseller?
A reseller is someone who buys products from suppliers with the goal of selling them to customers for a profit.
They might source their goods from various places, such as liquidation sales, auctions, or wholesale distributors.
Resellers have the flexibility to operate in different ways. Some choose to sell through online shops on e-commerce platforms like Amazon or eBay.
Others may run their own brick-and-mortar stores, aligning more with a traditional direct sales company model.
Additionally, resellers can also take on the role of a dropshipper, where they sell products without actually stocking them, having the supplier directly ship to the customer instead.
Is reselling illegal?
Reselling is totally legal, but let’s talk about keeping things on the up and up.
Plus, you need all the necessary documentation in place, like a business license, a sales tax permit, or other necessary permits for your e-commerce store.
If you’re running an online shop, remember to handle sales tax – then pay sales tax to the government.
Permits and licenses are your new best friends. Depending on your location, you might need a resale permit, a resale license, or maybe a standard business license.
And if you’re dealing with stuff like electronics, there might be a few more hoops to jump through to start a reselling business, so make sure to do your homework on local laws.
When you start selling online, collect sales tax to keep things above the bar for tax time.
Is becoming a reseller a profitable business?
Many people ask, “Is being a reseller profitable?”
Reselling can be profitable if you’re strategic about it. Some resellers have turned it into a full-time career and earned six-figure incomes.
However, like any business venture, there are always risks, and building up your customer base and reputation can take time and effort.
Where do resellers source their products?
Resellers can source products from various suppliers, including:
- Local markets
- Thrift stores
- eBay and online marketplaces
Each sourcing method has advantages and disadvantages, so it’s important to carefully research and choose the best option for your reselling business.
What products are best for reselling?
When reselling, the golden rule is to focus on products that are high in demand but low in supply.
This creates a sweet spot where items are more likely to sell quickly and at a good price that gives you profits.
Some top performers in the reselling market include limited-edition sneakers, which are always sought after by collectors and fashion enthusiasts.
Electronics are another hot category, especially the latest gadgets or hard-to-find models. With their brand appeal and quality, designer goods also make great reselling items.
Lastly, vintage items are a hit, too, thanks to their uniqueness and nostalgic value. These products attract many buyers, making them solid choices for a successful reselling business.
How much profit should I aim for when reselling?
Setting the right profit target when diving into reselling is key to your success.
How much should you aim for? This is where having a good handle on your business structure comes into play.
Many resellers shoot for a profit margin somewhere between 40 to 50%. This isn’t set in stone – some might aim higher or lower based on their strategy and market conditions.
But remember, it’s not just about the selling price. To nail down your profit margin, you’ve got to factor in all the costs involved – think shipping, sales tax, maybe storage, and other expenses.
Starting and growing a reselling business can be a rewarding and profitable venture when approached with careful planning, research, and dedication.
Consider dropshipping as a low-cost business idea, or learn how to flip flea market finds to land resales.
Choosing the right products and sourcing methods and using effective marketing strategies can tap into the potential of your reselling business.
Whether you’re looking to resell electronics, clothing, vintage finds, or more, the opportunities are vast and waiting for you to explore.