Are you tired of the mundane 9-to-5 grind, dreaming of starting your own business, or looking for a side hustle? Then you have something in common with a lot of successful entrepreneurs.
When most of us think about entrepreneurs, the first thing that comes to mind are giant companies like Apple, Microsoft, or Walt Disney. In reality, many entrepreneurs built and grew their business right out of their homes.
Reselling: What is it?
A reseller is a person who buys a product at a lower cost and “resells” that product at a higher price either online or through traditional offline direct channels. It can take a little bit of practice, but in the end, it can be an easy way to earn a nice chunk of extra cash depending on the items sold.
Types of Resellers
- Affiliates don’t buy anything themselves. Instead, they promote products through their blog, YouTube, or other sources. Then when a person purchases a product, they get a percentage of the profit. This percentage they make is usually around 5% – 10%. Affiliates are oftentimes called social media “influencers” since they use the influence they have over their followers to try products.
- Dropshippers, like affiliates, don’t carry inventory in-house. Instead they usually have deals with manufacturers to send the product directly to the customer after he/she buys it off the dropshipper’s site. Dropshippers manage their own websites or marketplaces and use dropshipping tools to stock up their store without the headache or risk of carrying inventory. Expect to make 2% – 20% on products you carry this way.
- Wholesalers, unlike the other two, buy inventory, then resell it themselves. They take care of having the product in stock as well as getting the product to the customer. This reseller has more of a risk since they’re having to pay for the inventory, but the rewards are much high gross margins and control of the fulfillment process. We recommend that resellers progress from each step up to a “wholesaler” to learn which product work for them or so that they can increase the size of their sales operation in a controlled way.
5 Steps to Get You Started
1.) Pick your category
Figure out what you want to resell. Don’t feel that you NEED to limit yourself on one type of item. However, the more you know about a particular brand, item, or company, the better decisions you can make when shopping. Also, make sure to keep an eye out for favorite sellers, top name brands, and things that are easy to ship.
Next Step – If you want to purchase consumer electronics, contact us. We would love to be your partner and help you along the way.
Now that you know what you want to sell, you need to find sources from which to buy the it. Sourcing is the means of finding and purchasing inventory with the intent to sell. This is probably the most critical aspect of your reselling business. You should always be on the lookout for good deals from trustworthy manufacturers. Think of it this way, the better deal you get on the item, the more profit you can make.
Next step – we’re a great source of products. With 10’s of thousands of inkjet printers and affiliate, dropship and wholesale options we can work with you as you grow. Learn more.
Many associates resell with large online marketplaces like Amazon and eBay, but if you’re a beginning seller, you should also consider flipping your items for profit on places like Walmart.com, Newegg.com, Groupon.com, CraigsList.org, Wish.com or any place where people might be interested in what you’re selling. You can also start your online website to sell your products. Do keep in mind that if you do this, you will have to work harder to get customers.
Bonus Tip #1: With 79% of Americans shopping online, the internet can’t be a channel you neglect. Thinking about your online strategy is a must when it comes to building and growing your business.
Bonus Tip #2: – If you’re trying to decide on a platform to launch your website, here are some suggestions: WooCommerce is great if you have WordPress experience or expect to use written content to drive your business. Shopify is the biggest player in the industry, but you might find that you are nickel and dimed on all of the add-ons that are essential to get your business started. We use BigCommerce since it includes many of the features that Shopify charges you for, though the selection of add-on apps and templates is not as extensive. BigCommerce now supports a plug-in for WordPress, so you have that option now, too. Finally, there’s Magento, it’s for experts. It’s extremely powerful however it takes maintenance and is not recommended if you’re new to website design.
4.) Plan ahead for shipping
Don’t forget that once you sell an item, you have to find a way to ship it. It’s a great relief that shipping companies have programs for small and large business owners to help ship their items. Don’t forget to be proactive! Find a box for your item before it needs to be send to the customer.
Bonus Tip #1: To save on packaging, be sure to keep the bubble wrap, boxes, and packaging from sourcing.
Bonus Tip #2: We use and highly recommend ShipStation to manage your shipping. It integrates with most e-commerce platforms, can hook into different channels directly and makes shipping very easy. If you don’t know what to use it for – it makes the process of organizing shipping, finding real-time shipping pricing and managing on time deliveries easy.
Before you start selling on Amazon or eBay, we recommend reading up on seller guidelines for Amazon and eBay, and we’ll help you dive deeper on a variety of beginner and intermediate topics in our blog.
As you can see, reselling is a natural step into entrepreneurship, and there are many different paths to success. Whether you are tired of the mundane 9-to-5 grind, dreaming of starting your own business or looking for a side hustle, there’s a way to succeed in reselling.
Image Microsystems is here to help you not only as you take your first steps to becoming an entrepreneur, but also along the way as you grow and discover new questions to ask. Want to get started reselling? Learn more about our reseller packages by clicking here.
We’re here to help you succeed!