Launch an Online Reseller Business

What is Reselling?

Reselling is a business model where you purchase products from manufacturers, wholesalers, or other suppliers at a discounted price and resell them to customers at a higher price, typically through online marketplaces or your own e-commerce website. Resellers use their marketing and sales skills to generate profit through product markup.

Who is it Best For?

Reselling is best suited for entrepreneurial, resourceful, and sales- and marketing-savvy individuals. If you enjoy working independently and have an eye for spotting profitable opportunities, a reseller side hustle can be right for you.

Side Hustle and Business Potential

Starting an online reseller business:

• Low Startup Costs: Reselling requires minimal upfront investment compared to traditional retail businesses, as you can start with a small inventory and gradually reinvest profits to scale your business.
• Flexibility: You can work from anywhere with an internet connection, set your own hours, and manage your business according to your schedule and preferences.
• Scalability: Scale your business by expanding your product offerings, reaching new markets, and building relationships with suppliers and customers over time.

How to Make Money from Reselling

• Product Markup: Resell products at a higher price than the purchase cost. The difference between the buying and selling price is your profit.
• Bulk Purchases: Buy products in bulk or at wholesale prices to receive volume discounts, then sell them individually at retail prices to maximize profit margins.

Where to Find Products to Resell

• Source products from wholesale suppliers, manufacturers, or distributors who offer discounted prices for buying in bulk. Attend trade shows, visit wholesale marketplaces, or contact suppliers directly to explore product options.
• Purchase discounted or surplus inventory from liquidation sales, clearance events, or bankruptcy auctions to find brand-name products at below-market prices. You can find products by visiting your local Walmart, Walgreens, or other retail stores that are liquidating some products to make room for new ones.
• Explore online marketplaces such as Alibaba, AliExpress, or DHgate to find a wide range of products from international suppliers at competitive prices.

Steps to Start a Reseller Business

By following these steps and leveraging the right platforms, you can start and grow a profitable online reseller business.

Step 1: Choose a Niche

Select a niche or product category based on market demand, consumer preferences, and your own interests and expertise. Focus on a niche to streamline product selection and marketing efforts.

Step 2: Research Market Trends

Conduct market research to identify trends, gaps, and opportunities. Analyze competitor offerings, consumer preferences, and demand for specific products to inform your product selection.

Step 3: Source Products

Find reliable suppliers or wholesalers offering high-quality products at competitive prices. Negotiate pricing, terms, and shipping arrangements with suppliers to ensure profitability and reliability.

Step 4: Set Up Online Presence

Create an online presence for your reseller business through e-commerce platforms such as Shopify, WooCommerce, or Amazon Seller Central. Customize your storefront, upload product listings, and optimize product descriptions to attract customers.

Step 5: Market Your Business

Develop marketing strategies to promote your reseller business and attract customers. Use social media, email, content, and search engine optimization (SEO) to reach your target audience and drive traffic to your online store.

Tools You’ll Need

E-commerce Platform: Choose between Shopify, WooCommerce, or Amazon Seller Central for your online store. Use built-in tools and features to securely manage inventory, process orders, and accept payments.

Product Sourcing Tools: Use product sourcing sites such as Alibaba, AliExpress, or SaleHoo to find suppliers, compare pricing, and discover trending products in your niche.

Inventory Management Software: Consider using Zoho Inventory or QuickBooks Commerce to track inventory levels, manage stock levels, and streamline order fulfillment processes.

Marketing Tools: Use social media management platforms (e.g., Hootsuite, Buffer), email marketing software (e.g., Mailchimp, ConvertKit), and SEO tools (e.g., SEMrush, Moz) to promote your reseller business and attract customers.

Platforms to Resell Products

• Set up a branded online store on Shopify to sell your reseller products directly to consumers. Customize your storefront, manage inventory, process orders, and accept payments securely through Shopify’s platform.
• Leverage Amazon’s vast customer base and logistics infrastructure to sell your reseller products through the Amazon marketplace. Use Amazon FBA (Fulfillment by Amazon) to store, pack, and ship your products to customers, allowing you to focus on sales and marketing.
• Create listings for your reseller products on eBay to reach a large audience of buyers and sell products through auctions or fixed-price listings.

Find online marketplaces to sell your stuff.

Alternative to Reseller Business

Explore dropshipping as a business model for your reseller business. In this model, you partner with suppliers or manufacturers to fulfill orders directly to customers. A platform like Oberlo offers dropshipping solutions and product-sourcing tools to streamline operations.