The Business of Reselling
Sellers can simply get products by decluttering their home but for resellers a bit more work is involved.
The first thing you need to decide is what you want to sell. Try to keep to as few lines as possible while you are learning so that you can concentrate and get to know your market really well. This is the key to successful reselling, knowing what to buy, when to buy it and for how much.
There are some very important points to consider before committing yourself to becoming a reseller.
· Cash flow – Do you have the cash to pay up front for your goods? Most wholesalers do not offer credit until you have built up a good relationship with them.
· Storage – Do you have enough space to store the goods until they are sold? Renting storage can eat into your profits and some items might not sell as quickly as you hope.
· Transport – Have you thought about how the goods will be delivered to you? If you order a pallet load will you be able to move the pallet yourself? Do you have enough space in your garage for the shipper to put it inside for you or will you have to break it down outside and carry it all inside?
· Will you need to increase your insurance to cover the value of these goods while they are being stored?
· Do you need permission to carry on a business from home or will you have to rent office space?
When you have sorted out these issues and are ready to go, the next thing to decide is where you are going to buy your goods.
Some resellers buy from stores during the end of season sales and hold onto the goods until they are back in season. Check your local newspaper, scan through any advertisement that mentions sales, keep an eye on shops in your town and ask your friends and family to let you know if they hear about any upcoming sales.
There are thousands of wholesalers out there just waiting to do business with you. The secret to finding a good wholesaler is to know your market. Know the retail price of the items you are interested in – research prices using price comparison websites, eBay completed listings, local stores and online stores.
When you know the price, deduct any sales tax and deduct the profit you hope to make (usually about 25%) this will leave you with the price you should be buying at.
Next you need to find your wholesaler. Check out wholesalecentral.com for a comprehensive list of wholesalers. By searching for the type of products you are interested in you can narrow the search and really focus on the appropriate contacts.
Don’t just decide to go with the first contact you see. Compare notes. Shipping rates and transit times, credit terms, payment options, minimum orders and of course price are all important when sourcing your goods for reselling.
Start your research and get ready to launch yourself into the business of reselling.
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