If you like the idea of working for yourself, being your own boss, and enjoying the sense of satisfaction that comes from running your own business, then setting up a reselling business might be just the right job for you. Working as a reseller means operating with a relatively simple and straightforward business model that has been well tried and tested by many people before you. It means starting a company that will be easy to scale, and it means starting out with relatively low entry costs and few barriers to begin with. In this article I will show you how you can create a reselling business in your spare time, enjoy some extra income, and then grow your company to the point where you can turn it into your main source of income.
The basic idea behind a reseller is to buy items cheaply as wholesale goods or discounted goods, and then to sell them on individually for marked up prices. This is precisely what most shops you visit do, but thanks to the web it’s now much easier for anyone to get started without having to set up a store right away.
Instead all you need to do is to find a cheap way of getting stock (wholesale being the most reliable and traditional method) and then to identify a route to market that will connect you with people willing to pay for those items. If you can also increase the value in some way then you’ll further increase your profits.
The most simple example of reselling then would be to visit an online wholesaler, to buy a job lot of jeans, or of blank CDs, and then to sell those on eBay for a little bit more. You could go and do that right now with only a small investment and have made a fair amount of profit by the end of the week.
Tips for Success
If you want to succeed though then you need to come up with a good business model and think carefully about where and how you are going to sell your items. Sticking to a particular niche or industry is one good piece of advice for beginners which will allow you to more easily identify a market to sell to. Another important tip is to choose a niche that will allow you to easily increase the value of your stock. For instance, buying bath goods is a good strategy because these can be repackaged as gift sets which instantly makes them more valuable and allows you to earn more for them.
Of course eBay shouldn’t be the only way you find buyers for your products. You should also spend some time setting up a website which you can then use in order to attract more customers and which can be used alongside various forms of advertising. With a website and a PPC campaign you can bring in a lot of traffic. The brilliant thing is that all you need to do once your site is set up, is to order the items and then send off what gets sold – it will take a couple of hours of your day at most so you can easily do this while holding down a 9-5 job.
Each time you buy your products you will be investing a small amount of money, but you should then be earning more money back as a result. Each time this happens, the trick is then to invest a little more money into your next batch of items. That way you can then buy more and increase your turnover and thus profit. Then the next time you will have even more money to invest back into more items and potentially advertising.
Eventually your stock will start to overwhelm you however – it will be too difficult to store the items in your home and to send them in bulk when you get orders. This is why you will eventually also need to start outsourcing storage and delivery, or potentially invest in your own warehouse and your own staff. At this point you will be earning enough to give up the day job, and there you have it – you now own your very own reselling company…
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Sam Peters, the author of this article, is a freelance blogger and a customer service executive at GKR Transport, freight transport service providers in Australia. Sam loves blogging and is a regular contributor to many lifestyle and home-improvement blogs.