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May 11, 2022

Step-By-Step Guide On How To Become A Reseller In 2022

If you’re looking to live life on your own terms, escape the 9-5 grind, and become your own boss, then becoming a reseller is a sure-fire strategy to making 300 USD per day in 2021. 

The concept of reselling is straightforward: you buy low and sell high. In a nutshell, that’s all there is to it — you find products that people want, buy them cheap, then sell them at a profit. 

But recently, I’ve had an increasing number of queries from my freedom fighters asking me some excellent questions about running a reselling business. Questions like:

  • What are the best products to resell?
  • How do I know if reselling is for me?
  • How much money can I make selling?
  • How can I become a reseller?
  • Do I need to pay sales tax to trade online?
  • Can I sell things full time or it’s only a side hustle?
  • Where can I get buyers for my products?

In this article, I answer these questions and more. 

I offer you a step-by-step guide on how to become a reseller in 2021, and as a bonus, I am including a last-minute sign-up to my free upcoming webinar on how to scale from making $10/day to $1,000/day.

Table Of Contents

  • How To Become a Reseller
  • What Is Reselling?
  • What Is Retail Reselling?
  • 5 of the Best Products To Sell
  • What Are the Advantages of Becoming a digital merchant?
  • Step-By-Step Guide On How To Become A Reseller Online in 2021

What Is Reselling?

As a reseller, you source products or services for as cheap as you can, then you market them and sell them at a marked-up price.   

As the good old saying goes, “buy low, sell high!”

You act as an intermediary between the manufacturers, wholesalers, recyclers or stores, and your customers. Most times, you help your customers find the products they are looking for but can’t find for themselves.
What Is Reselling?

What Is Retail Reselling?

Traditionally, retailing means to sell products to consumers via retail companies. An excellent example of a retail business is a corner store or a grocery shop — these places purchase goods from a wholesaler and then offer them at convenient locations. 

On the other hand, sellers often purchase their products from a retail store and then vend them on to somebody else. The simplicity is why so many are becoming retail resellers.

Why Start A Reselling Business?

Why Start A Reselling Business?

Source: Pixabay

Becoming a web-based vendor is one of my favorite ways to achieve financial freedom

For some of you, reselling might only be a side business that brings in a few hundred dollars a day. For others, you might find that reselling suits your lifestyle and that you want to scale your reselling business to $500/day +. 

The beauty of reselling is that you can do it from anywhere with a reliable internet connection — perfect as a lifestyle business!

Before you launch your reselling business…

Get A Business License

It’s vital to start your business on the right foot legally. Here’s how in 3 simple steps.

  • Research state laws: to prepare for your business’s registration, research what your state requires getting your company incorporated. Since laws differ from state to state, it’s vital to discover exactly what yours demands.
  • Register your business: once you have all the needed paperwork on hand, register your company. Only when your business is a recognized entity will you be able to collect sales tax and meet all the legal requirements of running a company.
  • Get a reseller license: after registering your business, get a reseller license from your state. Some states call it a resale certificate or a vendor license. Realize also that besides your home state license, some states charge you fees for buying and selling across state lines.

Covered the legal aspects of owning an internet vendor business?

Great.

It’s time to decide what exactly you’ll sell online.

5 Of The Best Products For A Reselling Business

Once you’ve decided you want to become a reseller online, you need to figure out the most lucrative things to resell for profit. 

Some of my favorites include:

Shoes

Shoes

Source: Pixabay

Top designer shoes from brands like AirJordan and Gucci can sell for thousands of dollars. While you don’t always need to aim for the premium lines, knowing which shoes people are looking for and which ones are valuable can help you make a significant profit reselling.

Classic video games and consoles

Classic video games and consoles

Source: Unsplash

The gaming industry is growing at an alarming rate and will only continue to do so. Gamers are a sentimental bunch, which is why pre-90s old-school games and consoles are a reseller’s dream. Look for Atari, NES and Super Nintendo stuff.

Books

Books

Source: Pixabay

Ever see Johnny Depp as the book collector in the Ninth Gate? If not — watch it! Not only is it a great movie, but it highlights just how valuable books can be. Look for first editions and well-preserved classics to resell. 

If you know what you’re looking for, books are a fantastic product for reselling.

Branded clothing

Branded clothing

Source: Pixabay

Next, resell clothes to make easy money. Look for branded clothing with minor defects from the factory, or look in thrift stores for designer lines. Clothing takes longer to resell than other items, but it can be a worthwhile resell item with patience.

Domain Names

Domain Names

Source: Pixabay

Remember when Google briefly lost ownership of Google.com back in 2015? They scrambled to cancel the transaction and regained their domain, but domain names can be worth hundreds of thousands of dollars. Look for domain names similar to other popular URLs or preempt future valuable domain names, buy them, and then sell them in a few years. 

The most expensive domain name ever – Cars.com valued at over $872 million.

But where do you get the physical stock to sell?

Good question.

There are many sources of high demand resale goods:

  • Garage Sales: no matter where you live, there are many garage sales in your neighborhood. If you are patient and have a keen eye, you can pick up valuable items you can sell for extra cash. 
  • Social Media Sites: social media platforms such as Facebook Marketplace can also be a great source of fresh inventory you can buy for a song. You can get a head start over other resellers by turning notifications on, so you are the first to know whenever new stock comes in.
  • Manufacturers: top retailers like Bed Bath & Beyond, Target and other leading brand names dispose excess or returned inventory by selling to resellers to make way for new inventory. The good news. They sell bulk quantities, so you get cheap deals. 
  • Commercial Sites: some smart resellers buy products from clearance sections of ecommerce sites that want to move bulk goods fast.

It’s tempting to jump head first and start to sell online in pursuit of these lucrative opportunities. Don’t yield to the temptation, otherwise your reseller business will bomb.

Market Research: The Backbone To A Successful Resale Business

Market Research

Source: Pixabay

Market research is foundational to online reseller business success. 

To tick off all the market research boxes, ask yourself:

  • Are there buyers for what I want to sell?
  • How big is the target market?
  • Where can I find my target audience online?
  • What will I sell? Certain items move faster than others.

It’s also crucial to find out the market value of the goods you want to sell to see if you can make decent profits off them. Conducting surveys is a quick and easy way to get potential buyer feedback, so you strategize well for a thriving small business.

You can also talk to other buyers and resellers for clues, tips, and trends about the potential customers you are targeting. 

What Are The Advantages Of Becoming A Reseller?

There are several benefits of becoming a digital reseller:

  • A small amount of investment needed to start.
  • Can run the business anywhere in the world.
  • The potential for scaling is significant, with life-changing profits.

Is Reselling For Me?

I get this question a lot from people considering vending. Their major concern is that there are already so many people doing selling stuff, so is it worthwhile?

Absolutely! 

You need to keep things in perspective—mainly, internet usage and the number of online transactions. With over 4.72 billion global internet users in 2021, internet usage is at an all-time high, with no sign of slowing down. 

And currently, e-Commerce (online sales) only account for around 10% of total retail sales in the United States — a number that is snowballing. This means that online reselling is a relatively untapped industry and one which is ready for you to tap into!

How Much Can I Make Reselling?

This is also an understandably common question, but the answer is up to you. 

If you want to keep things small, you can realistically earn a few hundred dollars every day trading on the internet. 

But if you think big — like merchandising big machinery (car upgrade parts, as an example), then you can easily make a 6-figure lifestyle business.

How To Become A Reseller Online In 2021: A Step-By-Step Guide

So, let’s get right into how you can become a reseller online RIGHT NOW.

  • Set up a seller account on Amazon. Head over to Amazon using the link in the photo, or type in “Amazon Seller Account” into Google. Depending on how much you want to start selling, select an individual seller or business account, then provide your bank account details so you can receive payments.
  • Set up a seller account on eBay. Scroll down to the bottom of the eBay homepage and find the “Start Selling” link. Set up your eBay account so you can list and sell products here, as well as Amazon.
  • Set up a PayPal account to receive payments securely. If you’re only using Amazon, you won’t need a PayPal account, as Amazon pays you directly. PayPal is useful for receiving eBay payments because it’s secure. Keep in mind PayPal will take between 3-10% of the money you receive. It’s the price you pay for security!
  • Find items to resell. At the beginning of your reseller journey, focus on one or two types of products.

This will help you learn where to find products to resell, how to research the actual value of products, get an idea of what your competition is selling them for, how to price, and how to promote your product. 

Great places to look are on eBay, social sharing sites like Gumtree or Craigslist, and physical locations such as garage sales and thrift stores. 

Some other websites to get you started:

  • Thriftbooks.com
  • Godaddy.com/reseller-program
  • Facebook Marketplace
  • Research the value of your chosen product before you purchase! This is one of the most critical steps as a reseller, as you need to know what a product is worth if you’re to make any money.

Look for online databases in your product niche, look on eBay and, for high-ticket items, consider:

  • Valuemystuff.com
  • Worthpoint.com

Never spend more than you should, no matter how cool or quirky the product is. Emotional attachment to inventory is one of the leading causes of failure for resellers — only purchase something if you know you can sell it for profit.

  • Create a detailed description of your product and list it on your seller accounts.

Your listing is where you make your sale — so it has to be good. 

Include as many high-quality photos as is necessary to show all angles of your product and include a detailed description that highlights the condition the item is in and the value of the item. This collector set of Ernest Hemingway’s works is a good example:

  • Price your listing accordingly. This is where knowing your market inside out sets you apart from your competition. You need to consider how much you paid for your product, how much your competitors are offering, and what your target customers are willing to pay.

Set your pricing accordingly so that you can more or less beat your competition but still make a profit.

  • Advertise your listings on blogs or social media. Having a blog or social media account relative to the products you resell is a great way to funnel interested customers to your listings. Offer deals and packages for multiple purchases and notify your followers of new listings you have.  
  • Ship your orders immediately. Being a responsive reseller means profit. Pack your deliveries with total security to avoid any damage, and send your items quickly, so your customers enjoy a great user experience and give you good social feedback.
  • Collect social proof and feedback from as many customers as possible. Having a high seller rating and positive customer feedback will determine the success of your reseller business. Ask your clients if they were happy with your service, and then ask them to give you a 5-star review with positive comments. Be sure to reply to their comments and thank them as well!

When you’ve got everything lined up, launch an online store.

How To Set Up An Online Store For Your Small Business

How To Set Up An Online Store For Your Small Business

Source: Unsplash

To maximize earnings and improve efficiency, launch an ecommerce store. Top resellers sell their own products from their stores, not third party online marketplaces that get a slice of the pie.

There are many ecommerce plaforms that can help you resell products bought from manufacturers. Shopify is one of the best.

Here’s a quick guide on how to set up shop on Shopify and start making money sooner than you think.

First do a bit of groundwork.

  • Reliable Suppliers - Find reliable suppliers to keep the goods coming in to your online businesses. You don’t want to come off as an untrustworthy vendor after selling out top products shoppers want. Also, if you don’t get new stock consistently, you will leave money on the table.
  • Product Photos - Get good snaps of your products from different angles for marketing. High-quality product photos lure more customers more to buy than drab ones.

With the foundation in place, it’s time to set up shop.

  • Go to the Shopify website and click ‘start your free trial. 

    Because they have a 14-day free trial, you can take their product for a spin and chose a paid plan later.

  • Choose a theme that suits your reseller business industry. Tweak the colors and font to fit your brand.
  • Add your inventory listings to the appropriate categories.
  • Optimize the header area and hero image because it’s crucial for boosting conversions and sales.
  • Create and polish up product descriptions for each of your products. Powerful product descriptions drive higher clicks and sales.
  • Set your shipping timelines and rates so shoppers know when to expect their goods to arrive.
  • Set up payment gateways. You are in this for the money, right? Shopify integrates with popular payment gateways like Stripe and PayPal plus 100+ other payment solutions around the world.
  • Cover all the legal bases by publishing your legal pages such as refund policy, terms of service, shipping policy, and privacy policy. Customize the provided templates or build the pages from scratch.
  • Once you are done, preview your shop and test the customer experience to make sure everything works perfectly.

But having a sleek store design isn’t enough. You need to do more to make money off it.

15 Free (Or Dirt Cheap) Ways To Drive Traffic To Your Online Store

Ways To Drive Traffic To Your Online Store

Source: Pixabay

While having superb stock and a stellar store design is great, you must promote your online side hustle aggressively to earn good money. To drive more traffic to your store:

  • Ask family, friends, and people in your circles to tell their peeps about your store.
  • Write SEO optimized blog content about to pics connected to products you sell.
  • Build your social media following and promote your store whenever an opportunity presents itself, e.g. announce specials and new stock arrivals.
  • Write guest posts on high traffic sites and link to your store in the bio so readers can click through and check it out.
  • Start and grow an email list and share timely promos about your store with subscribers.
  • If you have a bit of extra cash, invest in cheap paid ads to get targeted traffic that converts.
  • Improve your store’s SEO so you get organic traffic from people searching for your products directly or similar products aka secondary market.
  • Get your brand listed on online directories or review sites such as Yellow Pages, Yelp, Yahoo Local and Bing Places.
  • Write in-depth reviews about your flagship products to rank for many longtail keywords.
  • Tap into Pinterest massive 400+ million user base by sharing products pins on the platform to drive warm traffic
  • Become an active member of industry forums and talk abou your store in convenient moments.
  • Display your products and prices for free on Google Shopping platform.
  • Generate interest with fabulous contests and giveaways-people love them and they never go out of fashion.
  • Send free samples to nano influencers on social media so they spread the word about your store to their followers if they like the products.
  • Slash prices and run promos from time to time.

Try the ideas that appeal to you.

Double down on those that produce the best results.

Wrapping Up

As you can see, there is a bit of legwork that goes into becoming an online reseller. But once you’ve got yourself established, the juice is most certainly worth the squeeze. 

I’d expect most people who want to resell to need two hours of research and initial work per day for two weeks. During this time, learn:

  • What items you want to focus on at the beginning
  • How much these items are worth
  • How to set the right prices to bring in profit
  • Where you can find these items cheaply
  • How to create a listing that sells
  • How to market your online shop

If you put in the initial effort and follow all the steps, I believe you’ll see the results of becoming a reseller in about two to three months, probably even earlier. 

My free “Silver Lining Method” webinar on how to make $10/day, and then scale towards $1,000/day can help you with your mindset as a vendor and achieving your goal. But sign up now — limited spaces and time slots (oh, and did I mention it’s FREE!?).

Ready To Start Your Journey?
Now it is your turn to get started building your very own highly profitable online business. To help you get started, this week we are having a free training on the fastest and easiest way we've scaled from $10/day, then systematically grew to $100/day, then $1,000/day & more…Click the button below to join the training now.

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Mike Vestil

About the Author

Mike Vestil is an author, investor, and speaker known for building a business from zero to $1.5 million in 12 months while traveling the world.

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