How to Become a Reseller - Full Guide
Although reselling as a business model was discovered a long time ago, it has never been as popular as today. Profitable and easy to manage, online reselling even became a career of choice for some. But do you know how to become a reseller? Take a look at our simple guide if you're interested to find out.
Is Being a Reseller Legal?
If you wish to sell a product that isn’t yours to start with, how does this type of trading differ from, for example, piracy? There is a simple explanation - while piracy is, in fact, stealing, resellers buy their products. From a legal standpoint, it’s permissible to resell an item. Once you buy it, it becomes a part of your property, and you can do with it whatever you please, even earn money by trading it for a higher price.
However, that doesn't mean there aren’t any legal obligations, especially if you’re planning to make a full-time job out of it. For example, know that if you’re selling more than a few items here and there, you need to register as self-employed and complete an annual tax return.
You must also learn about certain legal limitations you may have. For instance, some corporations don’t allow the trading of their products on large platforms (Nike or Disney). Marketplaces usually have lists of restricted brands, so ensure to follow the rules and regulations on the multi-vendor marketplace platform you use.
How to Be a Reseller or How Does a Reseller Make Money?
Resellers buy items from manufacturers or other retailers and sell them to their own customers. They can also buy and resell their products on online marketplaces such as Amazon, eBay, Shopify, and the like. Profits are made from the added markup resellers charge their customers. Lower financial risks, work from home, and possibilities of getting your own margins are just some of the benefits of this business model.
But what makes customers choose an online reselling store instead of buying directly from suppliers for a more affordable price? The answer is simple - buying from an online resell site is often easier, doesn’t imply a minimum purchase amount, and provides better customer experience, including customer support, detailed product descriptions, and the like.
How does reselling look in real life, and can it be a real, money-making career? Take a look at this American couple who made reselling on eBay their full-time job:
How Do I Start a Reseller Business - a Step by Step Guide on How to Become a Reseller
Whether you're starting a sneaker reselling or a clothes resseling business, this type of trading can become your primary source of income even if you're starting your reselling business without money. Here is what you need to do:
- Step 1 - consider items you’ll be selling online. This implies a little more than just giving it a thought. You must think about things that are both in high demand and can provide you with the amount of money you want.
- Step 2 - choose an online selling platform that suits your business. After choosing the types of items you’re going to resell, you must decide where you want to sell them. For the best result, try out cross-posting on e-commerce platforms and use multichannel listing software.
- Step 3 - buy supplies. Since you aim for the best profit, you need to look for suppliers that can offer you a good deal. For starters, visit local thrift shops, look for new yard sales or suitable wholesalers.
- Step 4 - take photos of your products. Ensure your phone has a good quality camera, use natural light, and get close-up shots - those are just some of the tips that guarantee excellent product representation.
- Step 5 - make your offers stand out. Providing a great purchasing experience, unique and exceptional packaging, or adding loyalty programs will all add value to your offer and get you more satisfied customers that will continue to buy at your store.
- Step 6 - come up with brand development ideas. Set your long-term goals and make a strategy of how to achieve them. But what’s the ultimate goal? You need to aim for brand recognition and having your brand as a customer's first choice.
- Step 7 - reach out to other resellers for advice. If you need more help on how to start reselling, don’t hesitate to ask others for tips and suggestions. Many experienced resellers will gladly share their experience with you, so make sure you get in touch with them.
A Little Bit of Everything or Something Particular - Which Articles Should You List on Your Online Store?
As you can see, deciding what you wish to sell should be your primary task. Your first option is to list any item in which you see a possible profit. However, deciding about a specific niche (shoes, vintage clothing, fitness items, pet equipment, and the like) proves more successful. Know that customers are more likely to believe an expert in one field than those who sell whatever they can find.
When You Want to Start a Home-Based Business as a Reseller, How to Choose an Online Marketplace Platform?
When wondering how to start a reselling business, another essential question is where to list your products. Some factors that will affect your decision are targeted buyers, the type of the product, and what the platform itself can offer you. So, will you sell online on Shopify or maybe make money with Vinted? There is no correct answer on which platform to use - it's up to you to choose. The ost popular choices for all types of resseling businesses are:
How to Be a Successful Reseller? Our Cross Listing Software Is Your Safest Bet When Reselling
One of the main preconditions to resell successfully and profitably is having access to a larger number of buyers, and it can be achieved easily with cross-listing. However, creating, listing, delisting, and copying products on multiple platforms is not easy - and that’s where ZipSale comes along. Use our cross-posting software for selling online and reach more audience than you could even imagine. Sign up now, get a free trial and let this cross-posting tool help you build a lucrative trading e-commerce business.