Reselling is a great option for entrepreneurs that want an easy life. You reduce the risks of manufacturing and just need to handle the sales and marketing sides of the business. Here’s how to start a business as a reseller.
What is a reseller?
A reseller is a company that buys something at cost price or cheaper than market price and then sells it on. It’s the same as if you bought an item in Tesco, marked it up slightly to cover your costs, and sold it on eBay.
You could sell just one product type, for example, phone cases. Or, you could sell multiple products – for example, you might start out by buying and selling mobile phone cases, but later expand to tablets and laptops.
Get a permit for reselling
In order to resell, you need a permit from the manufacturer. This is known as a ‘distributorship’ and gives you the exclusive right to sell that product in your country/region. You can buy stock and then sell it on, or if they let you, you could even just buy items and then return them for a refund if they aren’t selling. The manufacturer will also want to check that you have the correct insurance and retail licenses before they hand over their products to you.
Find suppliers for your resale business
There are lots of manufacturers out there that will supply you with their goods without the need for a distributorship – but this is trickier and less profitable. You can find suppliers by searching on Alibaba or emailing companies directly if they sell products that you think people would like to buy (for example, cheap jewelry, electronics, gadgets, etc.) and asking them if they will sell to you.
Set up your website
Once you have your goods, you need to set up a website where customers can buy from. You can use a simple WordPress template or have something customized by a web designer – there are lots of great options out there that you could choose from.
Choose a hosting plan
Once you have your website designed, you’ll need somewhere to host it. You can choose from cheap hosting or more expensive dedicated servers – but either way, unless you are an experienced web developer yourself there is no point in trying to set the whole thing up yourself, just pay someone else to do this for you.
Create social media accounts
Once your website is up and running, it’s a good idea to set up social media accounts. This is because lots of people still use Facebook and Twitter as their main way of advertising things that they want to sell, especially if you are selling items that appeal to the younger generation. There are specific white label social media management for resellers that can help you get set up and manage your accounts.
Market your reselling business
The best way to start selling is word of mouth. Start by emailing all your friends and family asking for referrals, but also go out in the real world – attend local small business events, set up a stand at markets, etc.
If you are selling items, make sure they are easy to post or send them to couriers.