start a reseller business

How to start a reseller business

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Do you want to get in on a business that has been around for centuries? Even better, are you interested in taking advantage of a lucrative opportunity without having to spend a fortune? If this sounds like something that piques your interest, then reselling could be the perfect fit for you! Reselling involves purchasing products from manufacturers and then selling them again at higher prices to consumers.

When done properly, it can be an incredibly rewarding career choice both financially and professionally — so let’s take a closer look at what it takes to become a successful reseller.

Introduce the concept of reselling and its benefits

Reselling is a business model that involves buying products or services with the intention of selling them to others, often after adding value in some way. This can be as simple as buying in bulk and selling individually or as complex as refurbishing items or adding a personal touch before online reselling.

There are several key benefits to the reseller business idea. First, it requires little to no initial investment, making it an accessible option for those just starting their entrepreneurial journey.

Secondly, as a reseller, you have the freedom to choose the products or services you sell, allowing you to specialize in areas you are passionate about or have expertise in. This also means that you have the opportunity to establish strong relationships with manufacturers or suppliers, which can lead to better deals and exclusive offers.

Thirdly, the reseller business model is flexible, allowing you to scale your business as you see fit. You can start small, selling a few items on an online platform, and gradually build up to a larger operation with your online store or website.

Lastly, reselling can be a profitable venture if done right. By sourcing items low and selling high, you can generate a substantial profit margin. However, it’s important to remember that success in reselling, like any business, requires dedication, research, and a sound strategy.

Overall, reselling offers a flexible, low-cost way to start a business, with the potential for high profits and the freedom to sell what you love. Whether you’re looking to supplement your income or start a full-time venture, reselling could be a viable option.

What does a reseller do?

A reseller acts as an intermediary between manufacturers or suppliers and customers. They purchase goods or services with the intention of reselling them rather than consuming or using them. This means they essentially act as a retail business, buying products in bulk at a lower cost and selling them at a profit.

The responsibilities of a reseller can vary greatly depending on the size and scope of their operation. For instance, smaller resellers may handle everything from sourcing and purchasing products to marketing, selling, and handling customer service. Larger resellers, on the other hand, might have dedicated teams or departments for each of these tasks.

Resellers also play a crucial role in bringing products to markets that manufacturers or suppliers may not directly reach. By utilizing various sales channels, such as online marketplaces, physical retail stores, or even direct sales, they ensure the products are accessible to a wide range of customers.

In the digital landscape, reselling has taken on new forms. Software and digital services resellers, for example, purchase licenses for software or digital services in bulk and then resell them to customers pay sales tax. This is particularly common with cloud services, where resellers play a significant role in distributing these services to end-users.

Overall, the role of a reseller in the business ecosystem is invaluable. They bridge the gap between manufacturers and consumers, making products and services available to a diverse range of markets while driving economic activity.

Types of resellers

online reselling business

Several types of resellers operate in different spaces within the market. Firstly, we have Retail Resellers. These are the most common types of resellers operating in physical stores or online stores. They purchase goods directly from manufacturers or wholesalers and sell them to the end consumer, adding a markup to generate profit. Examples include grocery stores, apparel stores, and online retailers like Amazon and eBay.

Secondly, we have Value-Added Resellers (VARs). These businesses not only sell products but also add features or services to those products before selling them, hence enhancing their value. They work closely with manufacturers to provide customized solutions to the end user. VARs are common in the IT and computer hardware industries, where they bundle hardware, software, installation, and other services into a single package.

Next are the dropshipping suppliers. These entities sell products without stocking them. Instead, they take orders from customers and then forward those orders directly to the manufacturers or wholesalers, who then ship the products to the customers. This model is popular for its low startup costs and less requirement for storage space.

Lastly, we have Digital Resellers. This involves selling digital products, such as software, apps, and digital media. These resellers usually purchase business license from developers or producers and sell them to end consumers. Digital reselling has soared in popularity with the rise of SaaS (Software as a Service) and cloud computing services, where such resellers play a pivotal role in distribution.

Is education necessary to become a Reseller

online reselling

Although educational qualifications are not a strict necessity to become a reseller, having a solid educational background can undoubtedly provide a significant advantage. Knowledge in fields such as Business Management, Marketing, and Finance can be extremely beneficial in understanding market trends, managing business operations, and making informed financial decisions.

For instance, a degree in Business Management can equip a prospective reseller with essential skills in strategic planning, supply chain management, and customer relationship management. On the other hand, a background in Marketing could provide valuable insights into consumer behavior, competitive analysis, and effective advertising strategies.

Moreover, in the digital age, a grasp of Information Technology or e-commerce could also be advantageous for resellers, particularly those planning to operate online. Understanding how to effectively utilize digital platforms for sales, manage online customer relationships, and leverage data for business growth are all crucial in today’s tech-driven marketplace.

However, education is not the only path to success in reselling. Practical experience, entrepreneurial spirit, and an understanding of the market and the products being sold are also important. Many successful resellers start their businesses based on their passion for a product or a market, and their success is driven by their experience, hard work, and dedication.

Describe the different platforms to resell products

Reselling products online can be accomplished through various platforms, each with its unique advantages. Traditional physical stores are one such platform. Despite the digital revolution, brick-and-mortar outlets still hold significant value, offering customers a tangible shopping experience where they can touch, feel, and try products before purchasing.

Online marketplaces, on the other hand, offer a platform with a vast reach. Renowned platforms such as Amazon, eBay, and Alibaba provide resellers with access to a massive global market. These platforms are particularly beneficial for resellers looking to sell a diverse range of products to a broad audience, with the added convenience of home delivery for customers.

Social media platforms like Facebook Marketplace and Instagram Shop have also emerged as effective reselling platforms. They offer a more personalized way of selling, enabling resellers to leverage their social networks and engage with customers on a more intimate level.

Further, there are specialized online platforms for different product categories. For instance, Etsy is a popular choice for reselling handcrafted items and vintage goods, whereas Poshmark is a go-to platform for secondhand clothes and accessories. These platforms cater to specific market niches, allowing resellers to target a more focused customer base.

Lastly, creating a dedicated e-commerce website is another option for resellers. It provides total control over the business — from branding to customer relationship management — and, with the right search engine optimization strategies, can attract a substantial customer base. However, this option may require more investment in terms of time and resources for website development, maintenance, and marketing.

Identifying Products with High Resale Potential

Success in the reselling business often hinges on the type of products chosen. High-demand, low-supply items generally make for successful resale items. This category includes limited-edition products, vintage items, collectibles, and exclusive designer goods. These items gain value over time and often fetch a good resale price. They are particularly popular on platforms like eBay and Poshmark.

Another successful category of resale items is everyday consumer goods. These are products that people frequently use and replace, such as clothes, electronics, household appliances, and books. The key to reselling these items is to offer them at a price lower than retail and to ensure they are in good, usable condition. Amazon and Alibaba are popular platforms for reselling these types of items.

Lastly, consider unique and niche items. These are products that cater to a specific audience, such as handmade crafts, artisanal goods, rare books, or specialty tech items. They may not appeal to the general public, but they have a dedicated customer base willing to pay a premium. Etsy is a popular platform for such niche items.

In the end, it’s all about understanding consumer demand and market trends. Good resellers stay informed about what’s popular and what’s not and adjust their inventory accordingly. They also know their customer base well and can predict what items will sell best.

Discuss ways to find the best deals on inventory

Finding the best deals on inventory for a reselling business model requires planning, research, and a healthy dose of patience. A good starting point is to identify wholesalers or liquidation suppliers. These entities sell items in bulk at a significantly reduced rate, providing cost savings that can be passed on to your customers. Examples include BULQ,, and Wholesale Central. Always make sure to check the reputation of the supplier to avoid scams or low-quality goods.

Another approach is to frequent local auctions, estate sales, and flea markets. Here, one can often uncover hidden gems at a fraction of their retail price. It’s important to arrive early and stay late to take advantage of the best deals, which often occur at the beginning and end of these events.

Online marketplaces like eBay or Facebook Marketplace can also offer great deals. Some sellers may be unaware of the value of their goods or look to declutter quickly, which can result in a highly profitable resale business model.

Lastly, consider setting up alerts on deal sites such as Slickdeals or DealNews. These sites post daily deals from various online retailers, and setting up alerts for your preferred categories can help you snag inventory at a low cost.

In all cases, it’s crucial to keep a keen eye on market trends and to have a solid understanding of the value of the items you are purchasing. Remember, the key to successful reselling is not just buying at a low price but also selling items that are in demand.

Share tips to optimize advertising efforts when reselling

To optimize your advertising efforts when reselling, it’s crucial to understand your target audience and the platforms they frequent. For instance, if your customers are younger, consider advertising on social media platforms like Instagram or TikTok. On the other hand, if you’re selling more niche or vintage items, online communities and forums could provide a more targeted audience.

When creating advertising content, make sure to take high-quality photos and write detailed descriptions of your items. Clear, well-lit photos can significantly enhance the appeal of your items, while thorough descriptions can help prevent any potential misunderstandings or returns. Also, remember to highlight any unique selling points, like rare features or limited availability, to make your items stand out in a crowded market.

Leverage the power of SEO (Search Engine Optimization) in your listings by incorporating relevant keywords that potential customers might use when searching for items like yours. This will increase the visibility of your listings in search results and increase the chances of attracting potential buyers.

Finally, consider using paid advertising to reach a wider audience. Platforms like Google Ads, Facebook Ads, or eBay Promoted Listings can be cost-effective ways to increase traffic to your listings, especially when you’re trying to establish your presence in the online resale business. Like any investment, it’s important to monitor the results of your paid advertising efforts and adjust your strategies as needed to ensure a good return on investment.

Benefits of hiring a reseller for your company

Leveraging the expertise of a reseller can significantly enhance your company’s reach in the market. Resellers have established networks and customer bases, which can provide immediate exposure to your products and services. This can be particularly beneficial for new or small businesses that may not have the resources or recognition to rapidly penetrate the market.

Moreover, resellers can also help improve your business efficiency. By offloading the tasks of sales, customer service, and logistics to a reseller, you can focus more on your core business activities, such as product development and strategic planning. This not only leads to improved productivity but also allows for a more streamlined business operation.

Additionally, hiring a reseller can potentially lead to cost savings. In most cases, resellers purchase products in bulk, which can result in lower unit costs. Furthermore, by using a reseller, you can avoid the overhead expenses associated with direct sales, such as employee salaries, marketing expenses, and distribution costs.

Lastly, a professional reseller keeps up-to-date with market trends and consumer preferences. They can provide valuable insights and feedback about your products, which can be instrumental in shaping your product development strategies and marketing campaigns. This market intelligence can provide you with a competitive edge in the marketplace.

Staying Up-to-Date with Trends in Your Niche Market

Staying in sync with the evolving trends in your niche market is vital for the sustained growth and relevance of your business. A reseller with a finger on the pulse of the market brings invaluable insights to the table. Their constant interaction with customers and understanding of market dynamics allows them to predict shifts in consumer demand. This enables you to adapt your offerings timely and efficiently to meet the changing needs and desires of your target audience.

Moreover, resellers can offer significant input about the competitive landscape. They are uniquely positioned to provide an objective view of your competitor’s strategies and tactics. This information is crucial in defining your unique value proposition and differentiating your products or services from the rest of the pack. With a reseller’s insights, you can refine your marketing strategies, tailor your offerings, and make informed decisions that drive your business growth.

Furthermore, a reseller’s expertise extends to understanding regulatory changes and compliance requirements in various markets. This knowledge can help your business navigate complex legal landscapes, ensuring you remain compliant and avoid potential setbacks. In essence, Own eCommerce business partnering with a reseller profitable not only boosts your operational efficiency and market reach but also equips your business with the tools it needs to stay ahead of the curve in a rapidly changing market.


What are the benefits of working with a reseller?

Working with a reseller offers numerous benefits, including a deeper understanding of the market dynamics, insights into competitor strategies, and knowledge of regulatory changes. They help businesses adapt their offerings to meet changing consumer demands, refine their marketing strategies, and make informed decisions that drive growth.

How does a reseller contribute to the growth of my business?

A reseller contributes to business growth by using their expertise to predict shifts in consumer demand, thereby enabling timely adaptations to your offerings. Their unique position allows them to provide insights into your competitors’ strategies, helping you define your unique value proposition and differentiate your products or services.

How can a reseller help my business navigate the legal landscape?

Resellers often have a thorough understanding of regulatory changes and compliance requirements in various markets. Their insights can help your business navigate complicated legal landscapes, ensuring compliance and avoiding potential setbacks.

How does a reseller enhance my business’s operational efficiency?

A reseller enhances operational efficiency by offering market insights that can help refine your marketing strategies and tailor your offerings. This enables your business to make informed decisions faster, saving time and resources. Additionally, resellers often have established networks and relationships that can facilitate smoother operations and partnerships.

What industries typically work with resellers?

A wide range of industries can benefit from working with resellers. This includes technology, consumer goods, healthcare, finance, and many others. No matter the industry, a reseller’s expertise in market dynamics and regulatory knowledge can provide valuable support for your business growth. So, it is always worth considering working with a reputable reseller to achieve your business goals.


I hope this document has provided valuable insights into the role of resellers in businesses’ success. From enhancing market reach to improving operational efficiency and navigating legal landscapes, resellers bring a unique set of skills and experiences to the table. By leveraging their expertise, businesses can gain a competitive edge and achieve their growth objectives. So, consider working with a reputable reseller to take your business to the next level.

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Cam Morales

Cam is the Founder & CEO of, Bix and EcomUpstart - he built two 7 figure businesses since he started his entrepreneurship journey in 2016. He now helps others launch ecommerce stores and other online businesses.

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