We don’t need anything revolutionary. Product Idea Sell your products online. In fact, you don’t even need to manufacture your own products to start your own e-commerce business.
various business model Outsource product development, manufacturing, and order fulfillment to others, and keep the profits in your own hands. One such model is Resale business model.
Becoming a reseller is a great way to set up your small business and start selling online right away. Read on to learn how to become a reseller and get tips and ideas for running a successful reseller online store.
What is a reseller?
A reseller is a business that buys products from manufacturers, liquidators, or other retailers and sells them to its own customers. A reseller business permit (also called a reseller license, reseller certificate, or tax exemption certificate) allows a reseller to purchase certain items without paying sales tax, such as:
- Wholesale products
- Products sold at retail stores
- Raw materials and parts for manufacturing and selling products
The resale business model makes it easier for everyday consumers to find and purchase your products.
Many resellers offer added value to the customer experience, for example: Buy directly from suppliers It’s not always easy, and there are often minimum purchase quantities required. In contrast, resellers can not only sell products to customers individually (marking up the price), but also create a branded customer experience. These elements might be simple, such as detailed product descriptions and reviews, customer loyalty programs, and customer support.
A reselling business has many advantages and can be a profitable business model, especially if you have a niche expertise. Since you don’t have to go through all the steps of product development and audience building, you can launch your e-commerce store faster.
Reselling can also be a viable business for those who enjoy and thrive in marketing. If you can create and execute an effective plan, Marketing StrategyThis will increase the chances of your resale business being successful.
Direct product reselling is perfect for people with specific expertise or knowledge of an industry or demographic. For example, someone who knows vintage apparel could start a reselling business centered around vintage concert t-shirts.
How to become a reseller
- Register your business
- Research state laws and regulations
- Collect application documents
- Obtain a resale license
1. Register your business
Obtain Business license The state in which your business operates or is incorporated. In states other than the state in which your business is registered, Foreign Qualifications.
2. Check your state laws and regulations
Many states allow you to use an out-of-state reseller permit to avoid paying sales tax on items you resell. However, some states don’t accept out-of-state permits. Check your state’s laws before purchasing across state lines, both in-person and online.
3. Gather your application documents
Once you know what you need to register and submit your application, prepare all the necessary documents for your reseller business.
4. Obtain a resale license
You must apply for a reseller license in each state where you buy or sell products, and you may have to pay associated fees.
Consumption Tax Law It varies by state, and each state has its own sales tax rate. Some states also require you to collect local sales tax. According to the Tax FoundationForty-five states and the District of Columbia collect statewide sales taxes, and 38 states collect local sales taxes. We recommend checking with your local jurisdiction to determine specific requirements.
In the United States, businesses with reseller permits do not have to pay sales tax on the products they purchase for sale. However, resellers must collect sales tax from their customers and remit it to their state.
Like a business license, you obtain a reseller license wherever you operate your resale business. So if you incorporate in Florida but have an online store, distribution center, or manufacturing facility in Delaware, you’ll need a Delaware reseller license. If you buy and sell goods in multiple states, you’ll need a valid license in each state.
How to Find Suppliers for Your Reselling Business
To find suppliers for your reselling business, start by identifying the type of products you want to sell and the type of customers you want to sell them to. Then, decide whether you want to look for a supplier like a distributor that offers wholesale products, or a DropshipperSupplying products and fulfilling orders.
To search for reseller business suppliers, Online Directorysearch on Google or ask for referrals within your network. Here is a list Product Sourcing App Shopify is perfect for merchants. Each one acts as a directory, making it easy to find products to sell online. You can access a wide variety of products in any category, including electronics, toys, cosmetics, and more.
You can also partner with well-known companies to start a resale business. dropshipping website like Worldwide Brand, Sale Who, Dobaand AliExpress (our company’s The Complete Guide Browse websites (such as AliExpress) to see what products are available for resale.
5 Reseller Business Ideas
Reselling opens the door to many new possibilities business chanceReselling is a great option because you don’t have to invest in product development or manufacturing. Home-based business Or a side hustle that you can eventually turn into a full-time job.
Here are 5 ideas for starting a resale business.
1. Dropshipping Business
you can Start a dropshipping businessallows you to offer a wide range of products without having to carry any inventory. In the dropshipping business model, all the products you resell are handled by the supplier, so you only have to market and sell the products. Dropshipping suppliers handle everything related to the products, from product development to warehousing, tracking, and even order fulfillment.
Dropshipping is a low-risk business model because it doesn’t require investment in inventory or the costs associated with storing stock. Plus, you don’t need staff or space to ship products to customers because your supplier handles the fulfillment process.
2. Sneaker business
Shoes offer a wide range of niche markets for resellers, from sports shoes to stylish heels to trendy sneakers. People are always in need of shoes, and releasing seasonal designs keeps things fresh. There are plenty of opportunities to resell shoes and make a decent profit.
New Jersey-based Shopify merchants Packer Shoes What started as a small neighborhood custom shoe store has grown thanks to its omnichannel approach since its humble beginnings in 1907. Today, Packer Shoes not only resells sneakers from big-name brands like Adidas, but also offers its own designs.
3. Vintage Boutique
If you are thinking How to Start an Online Boutique When it comes to reselling, you’re on the right track. The second-hand resale industry is huge. In the US aloneThere are more than 20,000 stores selling second-hand goods, generating a total annual revenue of approximately $17.6 billion. Vintage boutiques are perfectly positioned to take advantage of this resale business opportunity.
When sourcing vintage items for your resale business, you can follow the traditional definition of items over 50 years but under 100 years old, or you can get inspiration from vintage trends. Cole and Terry The vintage clothing collection achieves the latter.
you can resell vintage clothesAntique furniture, knick-knacks found at garage sales, yard sales, thrift stores, donation centers, etc. The key to running a successful vintage resale business is knowing what items people want and how much they are willing to pay. For example, vintage Corningware is Niche Industry Customers.
4. Consignment
If you are interested in starting an online business selling vintage items, you can take this idea to the next level. Consignment Shops. Consignment stores sell high-end second-hand and luxury items, and not all of them are antique or vintage, they also have new items.
I love that bag etc.for example, Shopify Merchants An online consignment store, Love that Bag etc. sells high-quality designer bags at prices lower than new, but still more expensive than bags sold in vintage stores.
5. Subscription Boxes
Subscription boxes, which peaked in popularity with brands like Birchbox, continue to be a flexible business model for resellers looking to establish a more predictable revenue stream, allowing them to curate a variety of products and package them into one box.
How to start your own Subscription BusinessFirst, determine your target market, then find products that fit their needs and wants. Collect your products into themed boxes and launch new boxes weekly, monthly, quarterly, or however often you like.
Start your resale business today
Now that you know how to become a reseller, consider starting your journey as a reseller today. With no need to invest in product development, upfront inventory, or fulfillment, this business model is a low-risk way to get your foot in the door into running an e-commerce business and owning your own shop.
Illustration by Gracia Lam
How to become a reseller FAQ
Is it profitable to become a reseller?
If you understand your customer base and your products, a reselling business can be quite profitable. Depending on your niche, you can even buy second-hand goods and sell them at a significant markup.
Where do resellers get their products?
Resellers source their inventory from a variety of sources, including wholesalers, liquidators, second-hand stores, and even local estate sales.
How much does it cost to start reselling?
Starting a reselling business is surprisingly affordable; all you need is a source of second-hand or discounted goods and an online store to resell the items to waiting customers.
Is it illegal to be a reseller?
As long as you comply with local tax laws and obtain any necessary permits, it’s completely legal to run a resale business. Once you buy an item, it’s yours and you’re free to resell it anywhere, to anyone.
