Have you ever thought of becoming a reseller? If you’re wondering what’s involved and what you need to consider, then we’ve got you covered. Within this article, you’ll find everything you need to know.
What Is A Reseller?
A reseller is someone who buys products in bulk and then sells them in smaller quantities to the public. Resellers are usually more cost-effective than retail stores because they can buy products in bulk.
Resellers purchase products for resale at wholesale prices from manufacturers, distributors, or other resellers. They may also purchase goods at retail prices and sell them to the public as if they were buying goods for their own personal use.
How To Start A Reselling Business
The reselling business is a great way to start earning money without much of an investment. It’s also a great way to make money on the internet, in the comfort of your home with no commute.
However, there are, of course, steps you need to take in order to launch your new business.
If you’re considering starting a reselling business then you should think about what you know, and start with that. If, for example, you’re passionate about fashion, then it might make sense to resell clothes.
If you’re able to find a product to resell that you already use and love, then you’re also onto a winner. If you genuinely think that a product is good, then you’ll probably find it easier to sell that item.
You also need to find products that have a high margin and low competition in the market. Try to Look for products that have a lot of demand, but not many UK sellers. Doing this will make it easier for you to get started and make money faster.
Things To Consider
If you want to be a successful reseller, then you need to think about different aspects of your business. That will include legalities, other costs, customer services and developing your brand.
Make sure that you’re paying the right amount of tax on your earings. If you are operating as a business, you need to declare it to the relevant bodies. If you fail to do this, you may end up in a position where you owe money.
Other costs also need to be factored into your business plan. Think about how these aspects could enhance your business too. For example, if you want to make an impression on your customers, then you should consider bespoke packaging, rather than going for a bog-standard solution.
It’s impossible to sell ethically without offering a form of customer service. So have a think about how your customer services offering will look. You will also need to think about your brand and how you will stand out from other resellers. Most resellers tend to rely on the internet to advertise, but you need to work out exactly how you plan to do that.
There is certainly a lot to consider!
Avoiding Common Mistakes
Nobody wants to be an unethical reseller, so it’s important to try your best to avoid common mistakes.
You should never buy items in bulk, with the intention of selling them for profit. This is called ‘dumping’ and it’s illegal in some countries, including the USA.
When you’re buying goods, you also need to ensure that they’re not counterfeit. Reselling counterfeit items is not just illegal, but it’s also dangerous and unethical. If you buy a counterfeit item that doesn’t work, or breaks quickly, then you’ll end up with a queue of customers asking for refunds.
Try to avoid buying from private sellers on social media sites, such as Facebook or Instagram. These are often people who are trying to sell their old items for quick cash and they may not have any idea what they are selling, or if it’s real or not.
You need to ensure that the products that you’re selling are in the best condition, so make sure you’re picky about the stock that you do acquire.
The final mistake to avoid is reselling items that you don’t know about, or understand well enough. In order to be a successful reseller, you need to know your subject well.
Still Considering It?
Are you still considering becoming a reseller? There are plenty of benefits; you can set your own hours, work from home and you have the opportunity to make a lot of money. The pitfalls are that it is difficult to find items to sell and it may take a while before you see any money coming in.
If you decide to give it a whirl, then good luck!
Note: this is a paid collaboration.