When looking for safe ways to earn money, you’ve likely thought about investing in products to resale. The risk-reward ratio of starting a traditional business can be very attractive to those with capital and financial security.
However, this is not the case for most people who want to start their own business and guarantee their financial stability before anything else. For entrepreneurs with these characteristics, low and low-risk investments are ideal.
Investing in products for resale can be a perfect opportunity to start a successful business, even with a small initial investment.
We created this article with those who want to become a reseller in mind. Review the content to understand how to get started, what varieties of resale exist, and how to choose the most profitable products.
Table of Contents
What Is Product Reselling, And How Does It Work?
Product reselling is the act of buying items manufactured and marketed by a third party and then advertising and selling them. Resellers can be said to act as intermediaries between producers or wholesalers and customers.
The wide variety of business models and products to be sold are some of the main advantages of reselling. Because there is no need to invest time and resources in manufacturing, entrepreneurs have more time to study their market and develop marketing and sales strategies to optimize their results.
The possibilities of success offered by this business model make many entrepreneurs adopt reselling as a source of extra income or even as their main income.
An important tip for those looking for products to resell is that the more exclusive the product offered, the greater the chances of success, so the choice of products for resale has a high impact on the results. It is not the same to earn 20% of 10 products sold at $ 10, then 20% of 1 product sold at $ 100.
In the first scenario, you have to look for many more clients and attend to more logistics tasks. For this reason, many times, the products to resell are chosen based on offering quality and not quantity.
Benefits Of Reselling Products:
These are the main reasons why many decide to be a reseller:
Variety: you can choose a niche and specialize in it or diversify your product range and take advantage of different market opportunities.
Space and stock: depending on the chosen resale method, the product could be sent directly to the customer without going through you, saving costs and effort in inventory management.
Autonomy: you will be an entrepreneur and your boss, the business is yours, and you can even earn money from home. Therefore, success and earnings will be directly related to your work and your choices.
Choosing The Model And Products To Resell In Your Business
Before choosing a product to resell, you need to evaluate your initial investment, align your expectations with the market you want to enter, and find suppliers.
There are different ways to run a reselling business; Here are some of the most popular models that you could adopt in your business.
Resale Of Imported Products
Those who choose imported products for resale generally encounter less competition, so they have the potential for high profits. If you don’t know where to buy to resell locally, imports are an excellent choice.
To take advantage of these benefits, you should take several precautions when reselling imported products to ensure a healthy business.
Find a provider that meets the needs of your business and offers interesting options for your customers. Pay close attention to the price range and the currency’s value in which the operations will be carried out since calculation errors can directly affect your profit margin.
Here are some ideas for imported items that can be resold:
- Perfumes
- Brand clothes
- Brand shoes
- Luxury watches and accessories
- Makeup
Resale By Catalog
This is one of the most popular resale forms, very common among cosmetic, personal care, or bed, table, and bathroom items companies; some are even found within multilevel companies.
The catalog reseller model is ideal for those looking to be entrepreneurs but still don’t have a lot of time or money to invest.
This advantage comes from the fact that there is no need to create inventory, as some companies will only offer the catalog, although some will require a sales starter kit, which is generally low in value.
In addition, it is not necessary to carry large quantities of products with you, since with the catalog in hand and only some samples of the main products it is possible to show all the articles offered in a very simple way, in addition to offering the possibility of speaking directly with the customers to close sales through demos.
To get started reselling products from a catalog, look for information on becoming a reseller for that particular company.
Resale Of Products On Consignment
Don’t have the capital to start a business? Choose products to resell on consignment and start with zero investment. In this resale category, a manufacturer offers products for sale in exchange for a higher profit margin. It may be that the profits in this modality are lower than other options, but this is a great opportunity for those who want to undertake and do not have an initial amount to invest.
Another advantage of consignment resale is security, and if the merchandise is not sold, it is possible to return it to the merchant manufacturer. Those who want to resell products on consignment and want a good return need determination to work towards good sales.
Reselling Products Directly From The Factory
Entrepreneurs who have more experience and know their market well can choose products to resell directly from the factory, and this is a modality that minimizes intermediaries and maximizes profits.
However, it is necessary to invest a good amount of time and money to obtain good results with this type of resale since not all manufacturers work with the model, and those who usually do are wholesalers.
Here are some popular products that are bought and resold directly from a factory:
- Clothing
- Shoes
- electronics
- Jewelry and costume jewelry
Reselling China Products
Perhaps this category is confused with the option of working with imported goods. However, products from China for resale are so important that they deserve to be highlighted separately.
The costs are low, and a variety of options, some of which are even exclusive, make the import of Chinese products a viable alternative for those willing to devote to your business, studying trends and choosing new items that can generate good profit margins. There are many online shopping sites for choosing items from China; check out the list at the link.
Among the myriad of options for what to resell, some of the most popular are:
- electronics
- Cell phone accessories
- Sunglasses
- Clocks
- Women shoes
- Beauty products
- Stationery shop articles
- Jewelry and accessories
- Decorative objects
Dropshipping
Dropshipping is a business that has been gaining popularity. This modality is similar to catalogs’ sales, but it only works with products for resale in the online environment.
The practice works like this: an online store sells products, but the transaction order is sent to its partner supplier. Then, the provider will send the purchase to their customers on behalf of the E-commerce in question, which will earn the difference between the price charged to the end customer and the provider’s price. You become one more sales channel for your supplier.
Entrepreneurs looking to open a store, but do not have space for a stock or even an operation place, can take advantage of Dropshipping to overcome these adversities.
For a company to succeed through this modality, the supplier evaluation must be carried out carefully. After all, quality control and delivery time will be entirely up to the suppliers.
When choosing products in this category, look for exclusive options and try to segment your business into a single type of market so that you can work with more than one supplier.
And before adding new items to your store to resell, test the audience and seek information that helps you make decisions to delight your customers.
Also Read: Telephone Marketing: What It Is And How It Helps Sales
Tips For A Product Reseller
Before starting your resale business, either as a supplement to your income or as a full-time activity, here are some tips that can help first-time or even seasoned entrepreneurs.
Choose A Market Niche.
Choose a market niche and specialize in reselling products for that audience, regardless of the chosen business modality.
By defining a niche for your business, you will have more product options for this audience, increasing the chances of closing sales, up-selling and cross-selling, and even applying attractive promotion strategies. This will also increase the chances of finding a product with a good profit margin.
Avoid Options That May Be Difficult To Transport
When choosing products to resell, you should be careful to offer too large or too fragile products, as this can directly affect your customers’ satisfaction due to delivery time and risks associated with transportation.
The care these cargo categories need should be evaluated and compared to your customers’ expectations. Prefer products that offer easier delivery to minimize unexpected and unwanted risks.
Study Your Competition
This is advice that applies to any business, but it carries more weight in reselling. Regardless of whether your store is in its early stages, it is important to know who you compete with for customer attention.
Research the products they offer and which products have the highest success rate and; From there, you can define if there are new product opportunities for your online store or sales platform.
You can use the mystery client methodology to do a more successful investigation. Another option is to build a benchmarking strategy that allows you to know your competitors with a special interest in their suppliers.
Know In-Depth The Products You Will Sell
Knowing well and in detail the products to resell that will make up your store’s offer is part of creating a brand your customer’s trust.
Please pay attention to the most common questions and devise mechanisms to answer them quickly (whether in the product description, FAQ sections, or a live chat ) to make a difference in a customer’s decision.
Evaluate The Quality Of Service And Products
When looking for suppliers of products to resell, your main objective is to verify the quality of what is offered to you and evaluate the service you receive.
To analyze the quality of a product, it may be necessary to understand what the manufacturing process is like, what materials are used, if it is safe, and if it meets the expectations of your audience.
When evaluating the service, take into account the attention provided to you, the payment methods, delivery times, and the quality of the support channel that will provide you with assistance.
As this is a resale business, evaluating suppliers carefully and care is essential to ensure the prosperity of your business. After all, the quality of these products will be what your customers will enjoy.
Take Care Of Your Scalability
Scalability is the possibility that a company has to increase its number of clients and income without increasing its expenses or losing the quality of what is offered. This chooses suppliers and even more critical factor in your success as a reseller.
Some starting stores do not consider this factor, and their growth may be affected by not thinking ahead from the beginning.
When choosing a supplier, evaluate your strategy with special care as to whether it can meet the future needs that your business may have. Remember that products for resale can be sensitive to price changes, which affects your final price.
How To Start Your Reselling Business
After studying your audience, defining a business modality, and choosing the best products to resell, it is time to look for suppliers and start doing business.
Try talking to different contacts and vendors to find an offer that suits your initial investment and project proposal. Once your business plan is in hand, and your product offering is with you, it’s time to win over customers.
A great strategy to expose your product and attract consumers is to create an online store. Create a website and start reselling products with quality photographs and a store that gives your customers all the facilities, such as product description, diversity of payment methods, intuitive browsing experience, customer service support, among others. Features.
Also, use social media to boost your business. Publish, create content and make your networks a showcase for your business to sell more.
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