Start reseller business is the right choice for new business owner. How to start a business yet you do not have the capability to manufacture any products? Many businesses owner has some money and want to start a business venture right away. One of the initial obstacles many new business owners to start is, not being able to create a product to sell or offer.
The business world is growing rapidly every day. There are new systems or techniques for doing business out there that can be used for generating profit.
One of them is the reselling technique that has been practiced for a long time by business people of every generation.
Reselling activities are the choice of many people for doing business, because they are considered easy, flexible, and can even be used as a side job.
Interested in undergoing this business technique?
Let’s take a look on the complete guide of reseller business below.
1. What is a Reseller?
Before knowing how to become a reseller, you must first know what a real reseller is.
Please note that by becoming a reseller, it means you are selling products from other people or commonly called suppliers.
As a reseller, you can deal directly with the manufacturer. The relationship you have with the manufacturer is a business relationship ordering products to be resold to consumers.
Simply put, you will resell the products produced by the manufacturer.
However, the price given to you as a reseller is usually the production price, so you can increase the price when it is sold to consumers, and generate profit from the margin.
How to Become a Reseller and Working Techniques
As a reseller, you will resell products from manufacturers.
This method is fairly easy because you don’t have to bother thinking about product manufacturing.
In addition, the money required is also considered smaller.
Yet, you also have to be extra careful, because if you make a wrong calculation, you could lose money.
So how does a proper reseller work?
The first step, you have to really pay attention to find a good supplier.
Thanks to today’s technological advances, you can complete the supplier search process online. Order samples if allowed, or in small quantities in advance.
After that, you have to get a good price quote so you can resell it and make a profit.
Furthermore, as a reseller, the majority of suppliers will require you to buy a number of products (not just one), which is known as the minimum purchase quantity.
Then, you can sell the product online or offline.
As a reseller, you have to be wiser in doing product inventory.
If it is felt that the product will run out, start placing orders again with the supplier.
2. Advantages and Disadvantages of Being a Reseller
Like other business techniques, when you decide to become a reseller, you will find advantages and disadvantages.
By knowing each of them, it is hoped that you will be able to make wiser decisions in running a business.
Here’s the review!
Advantages of Being a Reseller
Here are the advantages of resellers.
1. Start Business Immediately
It doesn’t take long to start a business if you become a reseller.
You can start selling, on the same day you start a business.
All you have to do is promote your product on social media.
2. Sell Various Products
You can sell a variety of other products, as long as they are still in accordance with the industry you choose.
For example, if you sell healthy food, then you can market a variety of products that come from various suppliers.
The more types of related products you sell, the greater the chance of making a profit.
3. Have More Free Time
You can have flexible time in running this business, it can even be done as a side job.
Part of the reseller process is usually done online so you can do it anytime, anywhere.
4. Decide Your Own Margins
The freedom to set margins is in your hands.
You will get a much lower price than the market when you become a reseller.
You can set a higher selling price to make a profit.
However, it’s best to do a research first, what is the market price of the product you want to sell.
5. Free to Choose Inventory Items
You can freely choose what items you want to stock for sale.
If indeed the demand is high, you can make purchases and stock up inventory.
However, if the demand is low, you can reduce product inventory that is not selling well and stock up on other products that are selling better.
Disadvantages of Being a Reseller
Next are the disadvantages that you will feel if you become a reseller, what are they?
1. Cannot Modify or Innovate Products
Generally, resellers only accept products made by suppliers, without any opportunity to change the shape or anything else.
Some suppliers provide products without a label, which means that the supplier’s products are ready to be labeled with your brand, to then be sent to you according to your order.
2. Number of Similar Competitors
Becoming a reseller is somewhat easier than having to start a business from scratch.
Therefore, many people are interested in running it.
Of course, this will make you have many competitors in the market.
You can choose to become a reseller for products that are more market specific, or indeed not many sell them but still have a large market potential.
3. How to Become a Reseller for Beginners
As a beginner in the business world, resellers are the right choice.
You can sell goods without having to think about how they are produced.
If you want to start a business as a reseller, then pay attention to how to become a reseller.
1. Understand the Products You Sell
Never sell a product you don’t know very well.
Maybe you will get a profit, but you will have difficulty running it.
Because you don’t know anything about the industry, it’s not easy to know how to sell the right way to consumers.
Also, don’t forget that consumers will definitely ask you about the products you sell.
for an example: if you choose to sell smartphone case, equip your self with the knowledge of how to install it to the smartphone
It could be that if it’s like that, customers will leave and move to another heart.
2. Pay Attention to Market Prices
Business is profit oriented.
As a reseller you also want your inventory to sell quickly. That’s why you have to pay attention to the market price of the product you choose. If your selling price is too expensive, consumers will certainly takes more time to decide buying and might choose to buy from another seller who offers a lower price.
3. Pay Attention to Customer Demand
Ever heard of supply and demand? As long as there is demand, there will be a supply of goods. If demand decreases or disappears, then supply will follow that trend. As a reseller, you really need this balance of supply and demand.
Market demand is one of the pull factors for business. As a reseller, you must be aware to the market demand. It’s the dream of all business owners if their offers are sold out by customers. This can only happen if customer demand is maintained for the products you offer.
4. Be Wise on Inventory
As a reseller, you must buy and stock items before selling them.
Usually the supplier will also provide conditions, how many purchases must be made (minimum purchase quantity).
It should be noted that you don’t need to overdo inventory, because if it doesn’t sell, it will make you lose money.
We recommend that you check market first, and do an analysis of market interest.
If you feel that the product is really in demand, then stock up wisely.
5. Choose Products with Great Opportunities in the Market
One of the challenges of the resellers is that there are many competitors.
Looking for products that are more specific, can be one way to overcome them.
But when looking for niche products, make sure you also analyze that the market potential for these products is large.
Even though the product you are selling is indeed not a common product for everyone and a few consumers, these consumers are loyal and can make repeat purchases continuously.
6. Choose Reliable Supplier
A success reseller can be determined from how to choose a supplier.
In the long term, a reseller will cooperate with suppliers, in terms of shipping goods and so on.
Therefore, choose a quality supplier who also has quality, good price and compelling product.
Reseller Business Ideas
This business idea is just an example. As a business owner, you need to always seen the market potential. The more people see this post, the more competition it will be. That is why, only one example given to make you understand how this business ideas going to work.
Thermos Bottle with Led Temperature (an example)
Potential:
- Product design and display compelling for customer.
- Supplier (check HERE) has been verified and trade assurance included. That is mean you are protected from being scam.
- Thermos bottle needed by many people: uber/lyft drivers, professional, athletes, practically everyone.
- Price per items $3.62 (50pcs order), $2.95 (1000-4999 pcs order), $2.63 (5000 -9999 pcs order)
- Minimum quantity purchase 50 pieces
- Competition:
| Thermos Bottle with LED Temperature |
|---|
| Amazon | Walmart | Target |
|---|---|---|
Selling thermos bottle with led temperature above has profit potential for you. Starting capital for 1000 pcs is $2950.
You can sell it $10 directly to customer at flea market, bazaar, or any occasion for direct sales event each with sales message lower than Amazon or not available in Walmart. Or you can even sell it for $6 for 1 day to test customer response.
How to Start Selling?
Try to create a sales message that showing customer your products is cheaper than big shops available at your location, and it is only available for limited periods of time depends on when you joined the sales event (flea market, bazaar, whatever market, street market and whatever selling opportunity you may have).
If you have 9-5 jobs, sell your items on the weekends or on your workday off.
Find more profitable product suppliers HERE, and start your business right away.
