Interested in Becoming a Reseller? Here’s What You Need to Know
Running a resale storefront is one of the easiest and most effective ways to make money without developing your own products. However, it comes with a steeper learning curve that is often discouraging to new resellers. The industry has a lot of ins and outs that are important to understand before your dive into reselling. If you’ve been considering becoming a reseller, here are some things that you absolutely need to know.
photo/ Gerd Altmann
Don’t Forget About Auctions
Most resellers work with liquidation companies and distributors to acquire their products. It’s an effective way of acquiring products. Many liquidation companies also offer quality guarantees, which make them one of the safest bets when purchasing goods. However, if you’re willing to learn about liquidation auctions, they’re veritable treasure troves of resale goods.
Auctions are also great for wholesale purchases, and many companies rely on them to move unwanted product or returned merchandise. Walmart wholesale liquidation auctions are among the most popular ways to acquire goods from America’s largest retailer, and if you have a keen eye, you can find pallets of their products in excellent condition for pennies on the dollar. If this is the route you’re choosing, go with company-sponsored auctions or through auction houses that are certified by the original seller to ensure trustworthiness and quality.
Prioritize Speed
Resellers need to act and operate speedily to ensure quick turnarounds so that they’re maintaining the seasonality of their products. The fastest resellers are frequently the most successful as well. They find the best deals, snatch them from competitors, and list them on their storefronts seemingly instantaneously. This facilitates quicker sales and allows the reseller to start the cycle over again. Quicker progress through the sales cycle means more profits and returns on investment.
This doesn’t mean that you should sacrifice quality of work for faster speeds, though. If you start getting careless, you’re more likely to make mistakes, order incorrect inventory, and fall prey to scams. For resellers, scams will break your business in an instant. So while you need to be quick to the draw when it comes to securing merchandise, don’t go through shady sellers to do so. Nine times out of 10, you’ll end up being burned by a miscalculated purchase or a pallet that doesn’t show up as described.
Understand the Market
Some of the better known resellers offer wide varieties of products and goods akin to the big- box retailers whose products they use. However, when you’re getting started, it’s more important for you to find your niche in the market and work towards mastering it. This doesn’t mean you need to be a product expert off the bat, but a passion (or at least an interest) for the goods you’re selling will go a long way.
It will also help you understand your target customer more intimately. This helps you get a better idea of the demand for your products, desirable price points for resale merchandise, and your competition. If you’re unable to name your primary competitor, you likely haven’t done enough research. Know their price points, their marketing tactics, and their customer base. This will help you shape your own resale business more effectively.
Keep Learning
No matter what goods or services you’re reselling, it’s important that you always approach the business as a lifelong learner. Reselling is a competitive industry and is constantly shifting. Only the most diligent, dedicated resellers tend to make it. If you have the drive and motivation required of a reseller and you’re willing to put in the work, you’ve already got an edge on your competitors. Keep honing your business. Who knows? You might be the next big name in sales!
About the Author:
Rupesh Singh is freelance writer and founder of moneyoutline.com You can follow him on Google + & Facebook.
