Reselling has become increasingly popular. Whether you're a casual seller looking to clear out unused items, someone seeking a side hustle for a little extra income, or an entrepreneur aiming to scale a large and lucrative business- reselling offers flexible and scalable opportunities.
With so many peer-to-peer online marketplaces, it’s easier than ever to tap into global markets and turn reselling into a profitable venture.
This article will teach you how to start a reselling business. We'll walk you through everything you need to know to become a successful reseller, from understanding the basics to building a thriving online store. Ready to dive into the world of reselling?
Key Takeaways:
- Reselling offers flexibility and scalability, making it an ideal option for casual sellers or full-time entrepreneurs.
- You can start reselling with minimal upfront investment by sourcing items from thrift stores or your home.
- A successful reselling business requires market research, strategic planning, and efficient inventory management.
- High competition and time-consuming tasks are challenges to consider, but with proper time management, the business can thrive.
- Vendoo streamlines your reselling process by helping you crosslist to multiple platforms, manage inventory, and track sales—all in one place.
Download The Reseller’s Guide for 6 Figure Sales, a free Vendoo e-book!
What Is a Reseller?
A reseller is a professional “flipper-” someone who buys items at a low price to sell them at a higher price for profit. The key is to source in-demand products and resell them on online platforms such as eBay, Poshmark, Depop, Mercari, and others.
Resellers find items to sell using various sourcing methods, including thrift stores, estate sales and yard sales, wholesale suppliers, retail arbitrage, and online marketplaces. This business model offers low startup costs and the potential for high returns.
Is Reselling a Profitable Business Model?
Yes, reselling can be highly profitable, but success largely depends on factors such as product choice, sourcing methods, time allocated, and market demand. Some products may have high resale value, while others offer only marginal profits. Research and market awareness are key to ensuring profitability.
Reselling is a legitimate and viable way to earn extra cash, a full-time income, or anything in between.
Advantages of Starting a Reselling Business
Reselling is accessible and provides many benefits and opportunities for anyone at any income level, age, background, or experience level.
Low Startup Costs
Reselling has minimal initial investment requirements. Many resellers start by selling items they own, donations from friends and family, or sourcing inexpensive items from thrift stores or clearance sales. As your business grows, you can reinvest profits to scale.
You would be surprised at how many items you can purchase for $20 at a thrift store and how much you can turn that into online quickly and easily. 🤑
Flexible Work Schedule
Reselling offers complete flexibility in terms of working hours and location. You can operate your business from home or on the go, allowing you to set your schedule. As long as you have internet access, your business is open 24/7.
This makes selling accessible to anyone and everyone. Whether you’re a student, parent, have a full-time job, or a retiree, the ability to work when you want, and as much or as little as you want- is a privilege.
Diverse Product Range
Reselling allows you to choose from various items, from fashion and electronics to vintage items and home goods. This flexibility lets you tap into new trends and customer preferences, ensuring your product selection remains relevant and profitable.
Thrift stores are loaded with all types of items- meaning a world of possibility for resale.
Scalability
One of the biggest benefits of reselling is scalability. You can start small and, over time, expand by increasing your inventory or diversifying your product lines. Once your processes are efficient, you can hire additional help or automate your business.
Most resellers start small with items from their own homes, selling in one or two places. With time, they start purchasing to resell for a profit. Gradually, they start scaling their inventory and selling platforms. From there, the possibilities are endless!
Plus, reselling can be very fun! especially if you enjoy the thrill of the “treasure hunt.” They say if you do what you love, you never work a day in your life.
That said, like any job or business, reselling is a lot of work…
Disadvantages of Being a Reseller
Every job has disadvantages. It is work, after all. Starting and scaling a business is no easy task. Let’s explore some considerations.
High Competition
The reselling market is highly competitive. Standing out from other sellers requires strategic pricing, branding, and marketing efforts. You'll need to find unique products at a great price point, and be patient with yourself as you get started.
Time-Consuming
Reselling can be time-consuming, especially regarding sourcing, listing, clearing, measuring, photographing, drafting descriptions, listing, managing listings, bookkeeping, and shipping- just to name a few. 🤣
Dedication, consistency, and efficient time management are crucial to keep your business running smoothly, especially as you scale.
The inventory management and record-keeping requirements can be particularly overwhelming for a new business owner. Thankfully there are tools like Vendoo that simplify those boring but critical business administration tasks.
Lack of Traditional Employment Benefits
While reselling can certainly provide a full-time income, it's important to consider that self-employment, including reselling, doesn’t come with many benefits traditional jobs offer. Full-time employment typically includes health insurance, paid time off (PTO), sick leave, and retirement plans like a 401(k). Additionally, traditional jobs offer security through a steady paycheck, unemployment benefits if you're laid off, and worker’s compensation in the event of an accident.
In contrast, as a reseller or self-employed individual, you're responsible for securing your health insurance, saving for retirement, and managing your income without the cushion of unemployment or worker’s comp protections. This can add a layer of complexity and risk, making it an important consideration for those looking to pursue reselling full-time. Balancing the flexibility and potential income of reselling with the absence of traditional benefits is key to making an informed decision.
How to Become a Reseller Step-By-Step
These steps will help you to grow and scale your resale business every step of the way.
💡 Tip: The very first step—even before diving into the details below—is to just get started. Grab something lying around your house that you no longer need and list it for sale on a marketplace like Poshmark or Mercari. Half the battle is overcoming mindset barriers like intimidation, procrastination, or fear. You can begin your reselling journey today. Every business, no matter how big or small, starts somewhere.
Research and Plan Your Reselling Business
If you’re reading this, you already have an advantage that many resellers didn’t: many of us became accidental business owners by starting as casual sellers and then slowly progressing. You have the luxury of organizing yourself and structuring a business to thrive. Here are some tips:
- Identify your target market and potential products. Decide what you will sell and where you will sell it.
- Develop a detailed business plan with clear goals, budget, and pricing strategy.
- Set both short- and long-term objectives to guide your business growth.
💡Tip: A good place to start with your business plan is deciding where you will sell. Check out The Ultimate Marketplace Guide for Resellers to learn more.
Register Your Business and Obtain Necessary Licenses
It might not be necessary to set up a formal business immediately. However, a formal business structure provides many benefits for taxes specifically. Speak to your tax professional about what is best for you.
- Decide if you will operate as a sole proprietor, an LLC, or S Corp.
- Discuss the implications of your business type with your tax professional.
- Register your business according to local regulations.
Set Up Your Financials
Setting up a business requires organizing your finances and bookkeeping.
- Open a dedicated business bank account to separate personal and business finances. If you have a formal business structure, you can create accounts for the business. Otherwise, you might consider a separate personal account for business matters.
- Use accounting software or spreadsheet systems to track income, expenses, and profits.
- Consult an accountant if needed to ensure proper tax management and financial health.
Find Reliable Suppliers and Source Products
- Research local opportunities near you. Whether you’re thrifting, considering retail arbitrage, or wholesalers- you need to decide where you will find your inventory.
Set Up Your Online Store
- Decide your business name. You want something catchy and unique, not Name1990. You also want to make sure that your name is available as a username on the marketplaces and social media.
- Design a logo or graphic that you will use as your cover photo on marketplaces. Or, you might choose to use a picture of yourself.
- Reserve your accounts on the major reselling marketplaces and social media networks- even if you don’t choose to use those accounts immediately.
- Register your accounts with your contact information.
- Create detailed bios on each marketplace account.
- Establish clear payment, shipping, and return policies to build trust with buyers.
Develop a Marketing Strategy
- Create a consistent brand that resonates with your target audience.
- Leverage social media platforms like Instagram, Facebook, and TikTok to promote your products and drive traffic to your shop.
- Use SEO to increase visibility and consider email marketing for customer retention.
Manage Inventory and Fulfill Orders
- Implement an inventory tracking system, like Vendoo, to avoid stockouts or overstock.
- Ensure timely and accurate fulfillment of customer orders.
- Provide excellent customer service and maintain good communication with buyers.
Want a full guide to becoming a reseller? Download our e-book: The Reseller’s Guide for 6-Figure Sales!
Top Reseller Business Ideas
If you don't know where to start, here are some of the top-selling categories across major peer-to-peer e-commerce marketplaces.
Fashion and Apparel
The demand for clothing, shoes, and accessories is always high. Clothing, particularly women’s fashion, is the #1 most popular resale category across the board. Popular brands and limited-edition items often yield premium prices.
There are so many niches within fashion, as well. You might sell men’s, women’s, children’s, designer, vintage, etc. All of these have a huge market audience.
Electronics
Electronics are another top-selling category on all major resale platforms. Electronics are in constant demand, from smartphones to gaming consoles and even media nad parts. High-quality refurbished electronics can be particularly profitable.
Home Goods and Decor
Consumers are always seeking items like furniture, decor, and kitchenware. Selling trendy or unique home decor pieces can yield significant returns. These items are easy to find at any thrift store and can yield hefty returns.
Beauty and Personal Care
There’s a huge market for beauty products, skincare, and personal care items. Popular brands and luxury items are especially profitable in this niche. Note that most marketplaces require beauty products to be brand new and unopened.
Vintage and Antique
Vintage clothing, furniture, decor, and collectibles have a dedicated global customer base. Rare or high-quality antique pieces can command high prices, making this an exciting category for resellers.
Want more? Also, check out The 25 Best Items to Resell for a Profit in 2024.
Maximize Your Online Reselling Business with Vendoo
To take your business to the next level, consider using Vendoo. Vendoo simplifies crosslisting across multiple platforms, streamlines inventory management, features bulk tools for efficient workflows, and offers in-depth analytics to help you grow.
Ready to scale your business? Start crosslisting with Vendoo today for FREE!
FAQs
How Much Does It Cost to Become a Reseller?
You can become a seller today with $0. It is one of the only types of small businesses that you don’t need cash to start up. You do, however, need items to sell. Most can start with items lying around their home or in their closets. Beyond that, all you need to get started is a phone with a camera and a few recycled boxes for shipping. With that, you can start selling and reinvest your earnings into new inventory to flip.
Can You Make a Living Reselling?
Yes, many people make a full-time living through reselling, but it takes dedication, market research, and strategic planning. Success depends on factors like product sourcing, demand, and your ability to manage the business efficiently. With the right approach, reselling can become a highly profitable venture.
Is Reselling Illegal?
No, reselling is not illegal as long as you follow the laws regarding trademarks, copyrights, and the sale of genuine products. You also need to file and report your earnings by the law. However, you must be careful to avoid selling counterfeit or restricted items, which could lead to legal issues.
How Do Resellers Get Paid?
Resellers typically get paid through the marketplace they use to sell their products. Once a sale is made, the funds are transferred to your account (after fees) and can be withdrawn to your bank account. Setting up payment methods correctly is important to ensure you get paid quickly and efficiently.
