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How To Start An Online Resale Business
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You don’t need a revolutionary new product idea to sell something online. In fact, you don’t have to make your own products to start your own e-commerce business.
Different business models put product development, manufacturing, and order fulfillment in someone else’s hands, and the profits for you. One of these models is the resale business model.
Becoming a reseller is a great way to start a small business and start selling online without starting from scratch. Read on to learn how to become a seller, and get some tips and ideas for running a successful online store.
A reseller is a business that buys products from manufacturers, liquidators or other sellers and sells them to customers. A seller’s business permit, also known as a resale license, resale certificate, or tax exemption certificate, allows sellers to purchase certain items without sales tax, including:
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Reselling is basically a form of dropshipping where companies source products and materials from multiple suppliers and offer them to customers through an online store. This business model makes it easy for the average consumer to find and buy products.
Many vendors also add value to the customer experience. For example, buying directly from a supplier is not necessarily easy, and often requires a minimum purchase quantity. Instead, sellers can sell their goods to customers (on a brand), as well as create a branded customer experience. These elements can be as simple as in-depth product descriptions and reviews, customer loyalty programs, and customer support.
A resale business has many advantages and can be a profitable business model, especially if you have special skills. You can launch your eCommerce store faster when you don’t have to go through all the steps of product development and audience building.
Because reselling products is common in dropshipping, it can be difficult to attract customers when you first start out as a reseller. If you can plan and execute an effective marketing strategy, your sales efforts will be more successful.
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Direct product reselling is good for people with specific skills or knowledge of an industry or demographic. For example, someone who knows about animal behavior can start a dropshipping business around different toys that are best for pets.
Sales tax laws vary by state, and each state has its own sales tax rates. In some states, local sales tax must also be collected. According to the Tax Foundation, 45 states and the District of Columbia collect statewide sales taxes and 38 states collect local sales taxes. For your specific requirements, it is best to check with your local jurisdiction.
In the United States, a licensed business does not pay sales tax on the products it buys to sell. However, the seller must collect sales tax from the customer and remit it to the state.
Like a business license, you receive permission to resell wherever your resale business operates. So, if you are incorporated in Florida, but have an online store, shipping location, or factory in Delaware, you need a Delaware Reseller Permit. If you buy and sell property in multiple states, you will need a valid permit each time.
Tips For A Successful Online Resale Business
To find suppliers for your resale business, start by identifying the type of product you want to sell and the type of customer you want to sell to. Next, you need to decide whether you want to find a supplier that works as a distributor, supplying you with wholesale products, or as a dropshipper, supplying the products and handling order fulfillment.
To find reseller business providers, you can browse online directories, search Google, or ask for referrals from your network. Here is a list of product sourcing apps that are perfect for retailers. Each serves as a directory that makes it easy to find products for sale online. You can access products from various categories such as electronics, toys and cosmetics.
You can also start a resale business by partnering with popular dropshipping websites such as Worldwide Brands, SaleHoo, Doba and AliExpress (see our complete guide to AliExpress). Browse their website to see what types of products are available for resale.
Reselling opens the door to many new business opportunities because you don’t have to invest in product development and manufacturing. These traits also lead to selling a home business or side hustle that you can eventually turn into a full-time job.
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You can start a dropshipping business, which allows you to offer a wide range of products without keeping inventory. In the dropshipping business model, all you have to do is market and sell the products. Your dropshipping supplier handles everything related to the product, from product development to warehousing and tracking to even order fulfillment.
Dropshipping is a low-risk business model because it requires no investment in inventory, not to mention the costs associated with maintaining that stock. Plus, the supplier handles the fulfillment process for you, so you don’t need staff or space to deliver goods to customers.
Footwear offers a variety of niches for retailers, from athletic shoes to stylish heels, trendy sneakers, and everything in between. People always need shoes, and you can keep things fresh by launching seasonal designs. There are many opportunities to resell shoes and make a good profit.
New Jersey retailer Packer Shoes began as a small neighborhood custom shoe store. The company’s growth since its founding in 1907 is largely due to its holistic approach. Now, in addition to reselling sneakers from brands like Adidas, Packer Shoes also offers its own designs.
Year Old Has Made Over $100,000 Reselling Clothes
If you’re wondering how to start an online resale store online, you’re on the right track. The used goods resale industry is huge: in the US alone, there are more than 20,000 stores selling used goods, with a combined annual revenue of about $17.6 billion. Vintage stores are a great way to take advantage of this resale business opportunity.
When sourcing vintage items for your reseller business, you can use the traditional definition of items over 50 years old and under 100 years old, or you can be inspired by vintage trends. COAL N TERRY did the latter with their vintage clothing collection.
You can sell vintage clothing, antique furniture, or knick-knacks you might find at garage sales, yard sales, thrift stores, or donation centers. The key to a successful vintage resale business is learning what people are looking for and the price points they are willing to pay. For example, vintage Corningware is in high demand for a niche consumer market.
If an online business selling vintage goods sounds like fun, consider taking this idea to the next level by opening a consignment store. Consignment shops sell high-end or luxury items, and not all are antique or vintage; some are new items.
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Love that Bag etc., for example, is a retailer that operates a consignment store from its online store. Although Love that Bag etc sells high-quality designer bags for less than new, they are more expensive than bags you can find in vintage stores.
Subscription boxes first gained popularity with brands like Birchbox, and remain a flexible business model with predictable revenue streams for sellers. You can organize several items and pack them in a box.
To start your own subscription business, first define your target market and then find the items that match your wants and needs. You can collect items in themed boxes and launch something new every week, month, quarter, or at whatever pace you want.
Now that you know how to become a seller, consider starting your seller journey today. Since you don’t have to invest in product development, upfront investment in inventory, or fulfillment, this business model is a low-risk way to dip your toes into e-commerce business operations and own your own store.
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The reseller business can be quite profitable if you understand your audience and your goods. Depending on your niche, you can buy second-hand goods and sell them on a major brand.
Dealers acquire stock from a variety of sources, including wholesalers, liquidators, thrift stores, and even local estate sales.
Starting a resale business can be overwhelming: all you need is a source of used or discounted items and an online store to resell items to your waiting audience.
As long as you follow local tax laws and obtain the necessary permits, running a reseller business is completely legal. When you buy an item, you own it and are free to resell it to anyone and everyone you want.
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