Anyone can start their reseller business, be it a student, working professional, or homemaker. We have seen thrifting as a common form of business during the pandemic, where people sell purchased products; reselling is quite similar. Reselling is a legal form of business, and an in-depth understanding of the reselling market and customer demand is all you need to get started for this business. Follow the given step-by-step guide to launch your reselling business.
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What Is a Reseller Business
A reseller buys products from manufacturers, suppliers, retailers and sells them to their customers at a wholesale value or retail store. They must have a resale license and tax exemption certificate, which gives them the freedom to buy products without sales tax.
Reselling is a dropshipping method where companies source available products and raw materials from different retailers and suppliers and make them available to all the consumers in one place. This business model makes it easier for the average consumer to find and purchase products and resellers add-ons to enhance the customer experience. Buying directly from a supplier isn’t easy and often requires minimum purchase quantities.
How To Start A Reseller Business
1. Deciding the business niche
Reseller business allows you to offer your customers a wide range of products. There is no obligation on the seller; they can sell any product, but it is recommended to have a specific niche to maintain uniformity. Zeroing down on a niche also helps create a customer persona, thus providing information about the target audience.
2. Product sourcing
This is one of the crucial steps involved in the reseller Business. There are two primary sources from where resellers can source their goods.
Reseller Apps: reselling apps like eBay, OLX and Meesho are popular options. Meesho is a social e-commerce platform that offers a wide range of products.
Local sourcing channels: not every reseller uses a reseller app; some source their goods from local manufacturers and distributors.
3. Positioning the communication channel
All your efforts of sourcing products and pricing them right aren’t sufficient for reseller business. You have created a communication channel for customers to interact with your business. Social media channels, blogs, and mini websites are some of the best options for creating communication channels.
4. Marketing your goods
Effective marketing is the backbone of any business, and reseller business is no exception. It would be best to execute the right marketing strategies to upscale your reseller business.
5. Establishing a payment channel
Getting payments on time is the most critical factor of any business. You can use UPI, bank transfer, PayPal, or Razorpay suits for establishing your payment channels.
Best places to find Suppliers For Reseller Business
The sources and supplies of the product you will resale should be identified. The type of product, its quality, availability, and the customer who’ll avail of your service and buy your products should be recognized. Determination of suppliers is significant, some suppliers work as distributors and wholesalers, and some take care of order fulfilment.
To find a supplier, you should go to online sources and dictionaries such as Google directories or established companies to widen your network. Suppliers on e-commerce platforms like AliExpress, Salehoo, Oberlo, Global Sources, and Alibaba are well-known worldwide drop-shipping suppliers. Indiamart and eWorldTrade are two of the popular platforms for suppliers in India.
Five Opportunities for a Reseller Business in 2022
Dropshipping is the business model that allows the reseller to sell a wide range of products without stocking an inventory. You have to market and sell the products. Dropshipping is a low-risk business model as the suppliers handle everything from product manufacturing to delivery.
The footwear business offers a wide range of niches- from formal shoes to high heels to trendy sneakers to everything in between. Shoes stay in demand throughout the year, and you can launch a seasonal collection for customer acquisition. Instagram is the best platform for marketing as youngsters look for customized and trendy sneakers for much lesser prices than present on the market.
The resale industry makes $17.6 million in revenue annually. To take advantage of this industry, you can start a vintage boutique. You can sell vintage clothing, antique furniture, antique décor, jewellery, and other products that are in demand. Knowing what your customer looks for in the vintage market is the key to a successful vintage business.
Consignment business offers the same opportunities as a vintage boutique business. You can sell high-end or luxury used goods, along with a few newer items.
These days subscription boxes are in all our mailboxes. First, you need to determine your target market and goods that suit the customer’s wants and needs to start your subscription box business. Resellers can assort and assemble goods according to customers’ needs and their subscription theme.
Start Your Reseller Business Today
Reseller business is probably the most accessible form of business as it does not require inventory stocking or heavy investments. You can sell the products to the customers at a wholesale price and not lose any value. Many online platforms would host your business. Bikayi, for example, provides a live demo to showcase their platform to host your business and offers a variety of catalogues to manage your business. Now, you need not worry about hosting and carry on with reselling.