Resellers are individuals who purchase things, intending to re-sell them to others to earn money. The online business opportunities in India as a reseller are growing tremendously. Starting a reseller business is easy and doesn’t require any huge investment. Most of the businesses have made their reselling hobby into an actual business and are earning more than just their living.
Some reselling businesses require a physical premise and stock, while some can be easily done over the internet. Social media has established thousands of online businesses that are running smoothly and are successful. The best advantage of starting your reseller business online is that it doesn’t require any pre-purchasing of stock. You can start the business with what you have. Some of the best online business ideas as a reseller are selling your videos, selling your art, thrift clothing, etc.
Whether you want to start a reselling business as a part-time or full-time business, it is important to make a proper plan and research it before you dive deep right into it. This article will discuss how you can start a reselling business, what type of businesses you can invest your time in, and how to start reselling.
How to start reselling business online?
To start a reseller business online, the following are some of the considerations on how to get started with the business:
1. Choose the right type of reselling business
As you already know, a reseller is someone who buys stuff to sell it and earn extra income. There are many ways in which you can purchase and sell it online to increase an income stream. The first step is to choose the type of reselling business you want to start.
You can buy things at a wholesale price and sell them at a profitable margin, or sometimes, you can refer your sales back to wholesalers to earn commission over the products. It is important to streamline your business process and identify the right fit for you and your time.
2. Identify the industry for your business
The knowledge of the industry of your business adds an advantage to your online reselling business. It is easier whether you know the products you are selling online. The e-Commerce marketplace has evolved tremendously over the years, and it is essential to know the details of your products so that you advertise them better.
You need to research the industries, market trends, inflation, and their effects on your business. It will give you an idea about the pricing of different products and services, customer service, rules, regulations, etc. You can also ask your potential suppliers for more information about the products and their terms and conditions.
3. Identify the market and target audience for your business
The next step in starting your online reselling business is identifying the market and your business’s target audience. You need to know what your customers’ preferences are. How will you ship them the products—by dropshipping? By referrals? Or by creating an online website? How much will it cost you when you ship products to the customers? The best online business ideas in India are selling your art, selling handmade goods, selling books, selling thrift clothes, selling photography, etc.
4. Check out your competitors
Your new reselling business will be more profitable if you have fewer competitors in the market. This is the reason people choose a particular niche and do what nobody has done before. It eliminates the competition manifold. Many suppliers don’t allow resellers in their territory because it starts a price war and causes a downfall for everyone.
It is important to do your research and plan your actions. Do your research on how much your competitors charge. What will make your new reseller business stand out from the rest? How will your business be more profitable? One of the best online resale businesses is to sell beauty and fashion products. There are multiple articles on e-Commerce business ideas on the OkCredit website. You can check for some ideas for your reselling business.
5. Check if the business is viable
After identifying the right type of reseller business, latest market trends, competitors, and product information, the next step is to check if your reseller business is viable or not. Starting a business that doesn’t have the potential to be successful is a waste of your time and resources.
It is important to predict the business’s future and forecast the financial analysis of the business. Do you need to know how much it will cost for a website? How will your product be circulated to the customers? How much will it cost for affiliate marketing if needed? How much would it cost for advertisements? What will be the outcome? How much profit will you earn? These questions help you prepare for your business efficiently and effectively. You can play around with the best- and worst-case scenarios of the business and can find out the solution if things go awry.
6. Start your reseller business online
The last step is to start your reselling business—now that you have incorporated all the information and weighed the pros and cons of the business. The incorporation of the company is easy to do and can be done online.
After incorporation, set up a website and purchase a domain to start an online reselling business. You can also find a domain on a free website and purchase for free or at a very cheap rate and start with processing orders online. You can add all the stocks on the website after checking your suppliers’ availability and can start selling.
Thus, to conclude, we can say that a reseller business is a great way to start your online business. You need to brush up on the information related to the products and market trends of your business. The tips on how to start a reseller business are mentioned above. The reseller business can help you earn extra income and increase revenue.
Also Read our guides on how to start:
FAQs on Reselling Business
Q. What can I resell to earn extra income?
Ans. There are plenty of items you can buy online to earn extra income. Some of the best e-Commerce business ideas in India are to sell clearance items on Amazon, sell furniture, sell vintage hats, antiquities, sell sports equipment on OLX, sell musical instruments like guitar, piano, sell power tools, sell baby and kid gear, sell electronic appliances, sell limited-edition sneakers, sell used branded shoes, etc.
Other than that, you can also sell books online, sell vintage clothing pieces, sell vehicles and their parts, sell designer eyeglass frames, collectable jewellery, technology products like smartphones, computers, VCRs and VHS tapes, commercial equipment, rare or retro T-shirts, board games, vintage items or set of collections, scrap material, etc.
Some of the best online resale business websites to sell products online include eBay, OLX, Facebook Marketplace, and Amazon.
Q. How can I resell web hosting online?
Ans. The steps to sell web hosting are listed as follows:
- Choose a reseller web hosting partner
- Build your hosting services
- Set your prices and configure the billing system
- Support your customers
Q. What product has the highest profit margin in the reseller business?
Ans. A very profitable online reseller business is that of jewellery. From necklaces to rings, watches to bracelets, and earrings to pins, jewellery has the most demand in the e-Commerce marketplace and is considered the highest profit margin reseller business. The highest profit margins business gives an edge over other reseller businesses and has more chances to be successful than others. A business’s good profit margin is considered a 10% net profit margin, and a 20% net profit margin is above average. On the other hand, a 5% profit margin is low and is an indication that you need to level-up your business.