Reselling represents a lucrative business model these days and is gaining popularity. For many people it offers an opportunity to earn something extra, especially in addition to their job or studies. The good thing? As a reseller, you need little to no startup capital.
Reselling describes the reselling of all goods, such as sneakers, electronic items, books, etc. But how do you earn money as a reseller? How do I find goods for sale? How to start your own reseller business? – These are exactly the questions we answer in this article!
- What is reselling?
- For whom is reselling suitable?
- Which products are suitable for reselling?
- Criteria for the selection of a reselling platform
- The Guide to Reselling Start
- Returns in reselling
- Taxes in reselling
- Scale Reselling Business
- Conclusion – Is Reselling Worthwhile?
- FAQ – Frequently asked questions
What is reselling?
Reselling is a business model in which products are purchased and then resold at a higher price. These are mostly remnants, used goods or customer returns. The interesting thing about reselling is that it requires little to no startup capital.
For whom is reselling suitable?
Reselling is a time-consuming and location-based business model that requires both interest and passion. It’s important to get in not only for financial reasons, but also because of enthusiasm for this model. In addition, product research, negotiations, and building an online store are relevant topics for this business model.
If you’re just looking for a side income and already have startup capital, there are other business models that might be better suited for you. It is important to note that reselling is not an easy task. Here are some key tasks that a successful reseller must accomplish:
Niche selection:
You don’t necessarily have to specialize in a particular product area. It is advisable to take advantage of as many offers as possible and exploit the full potential of the business. However, you should only sell products that you know about, especially technical products, so that you can write correct article texts and answer customer inquiries.- Product research: Your main task is to search for good offers. In the beginning you will probably buy single items, but after a while you can also invest in remnants and palletized goods.
- Bidding: Once you have purchased goods, you need to evaluate them and determine the sales potential in order to resell profitably. It is also important to maintain your online store, including professional product photos, item texts, etc.
- Logistics: The purchased goods must be stored. Especially for pallet shipments, you should have your own warehouse. Once you have sold a product, you are also responsible for packaging and shipping.
Which products are suitable for reselling?
In principle, all products are suitable for reselling. However, there is a difference between reselling new goods and reselling used goods. At the beginning of your reselling business, you should focus on second-hand goods, as little start-up capital is required there.
When reselling new goods, a minimum purchase quantity is often required. Therefore, you need some start-up capital before investing in new merchandise. Also, keep in mind that with larger quantities of new merchandise, the variety of products in your online store decreases.
To find suitable reselling products, I recommend using Helium 10. The Black Box feature provides advanced filtering options to search the entire Amazon marketplace for products with high demand and low competition.
Some products are particularly well suited for reselling, for example books and sneakers. Books often have low acquisition costs and usually find a buyer. Sneakers are popular collectibles, with limited editions and rarity that allow them to increase in value.
Find products with helium 10
Helium 10 is a powerful tool that can help you find profitable products for reselling. Helium 10’s Black Box feature lets you search for products with high demand and low competition in the Amazon marketplace.
1. log in to Helium 10
The good thing is that you can sign up for free. Then you have a limited number of uses, but for now that’s enough. If you’re already sure, feel free to take advantage of this 20% discount for 6 months on Helium 10.
2. start black box
Start Black Box and open the advanced filters. Now you see that you have a number of options to search the entire Amazon marketplace:
3. set filters
Enter the values you want to search for. Ultimately, what product you should sell in your online store depends on your goals and budget.
PRESSURE SEARCH
Now you should see plenty of products that meet all your set criteria. If you want, you can sort the list by monthly sales.
4. select the results
Go through the list and sort out products from big brands.
Size and weight of the product
If you don’t have a particularly high budget, you should pay attention to the size and weight of the product. Plus size products cost significantly more than standard size products. You have to pay more not only for manufacturing, but also for shipping.
Price
If you sell products under $15, your profit margin is too low.
For products over $50, customers will start comparing similar products very closely. In the end, it will be much harder for you to close a sale.
Sales
The product should sell well and generate a decent revenue per month. How high this turnover should be depends on your business strategy.
Note that Helium 10 is a paid tool. However, it does offer a free trial version, which you can use first to familiarize yourself with its features and see if it meets your needs.
In summary, Helium 10 can be a valuable tool for finding profitable products to resell. Use the various filter options to search for products with a lot of potential and analyze the results thoroughly to make an informed decision.
Certain products are particularly well suited for reselling. This is essentially because they are limited or can be easily traded due to other factors. I have listed some of these products below and noted some interesting reselling tips:
Books
Books are a popular product for reselling because they can often be purchased cheaply and appeal to a wide audience. Although e-books are becoming more and more popular, there are still many people who prefer and collect printed books.
Here’s how to find suitable books for reselling:
- Search online for used books, returns or remaining stock. Platforms such as Amazon, eBay and AbeBooks offer a wide selection of products at various prices.
- Look for books on a specific topic or genre that are in high demand. For example, older editions of classics or rare books are often popular collectibles.
- Check the condition of the books before buying. Look for marks, creases, soiling, etc. to make sure the condition meets buyers’ expectations. Books in good condition usually fetch higher prices than those in poor condition.
- Create meaningful item descriptions and photos for each book entry. It is important that the potential buyer knows as much as possible about the condition and content of the book in order to make an informed purchase decision.
- Pay attention to the cost of packaging and shipping. Books are relatively easy to package so the cost is low, but don’t forget to include postage to make sure you make a sufficient margin.
- Note that you may have to buy a lot of books to make profits. Individual books generally do not generate as high margins as entire collections or palettes of books.
Reselling books may not require as much startup capital as other products. However, for a successful business, you should make sure that you can offer a wide range of products and also do not ignore the shipping costs.
Tip: Books printed before 1800 sometimes have a two- to three-figure retail value.
Sneakers and fashion
Sneakers and fashion are popular products in reselling, as there are many collectors and enthusiasts who are willing to pay high prices for limited or rare items. If you’re into sneakers and fashion, reselling can be a rewarding way to earn extra income.
Here’s how to find suitable sneakers and fashion for reselling:
- Research and learn about the latest trends and popular brands. Look out for limited editions, collaborations or sales where you can purchase items at a reduced price.
- Search online marketplaces like eBay, StockX or GOAT for the items you want. Pay attention to the condition and authenticity of the items to make sure you are offering high quality and original products.
- Choose your selling strategy: you can either bid on auctions or offer fixed price items. Auctions can fetch higher prices, but there is also the risk of a low sale price.
- Use social media to promote your items. Some platforms like Instagram and Facebook are particularly well suited for marketing fashion products and sneakers.
- Meet other collectors and resellers at local events or in online communities. You can make contacts, exchange experiences and possibly learn more about the latest trends and developments.
- With sneakers, you should also pay attention to the size. You should keep in mind different sizes, as some sizes are especially popular among sneaker lovers.
When reselling sneakers and fashion products, it is important that you are well informed about the industry, know the trends and the market, and develop a well thought out sales strategy. If you follow these steps, reselling sneakers and fashion products can be a rewarding activity.
Tip: Use the HEAT MVMNT app to find all the latest sneaker releases, stores & raffles.
Sale: When you buy sneakers or fashion, you should always keep the invoice so that you can present it when you sell. The best platform for selling fashion is StockX. The special thing about this online marketplace is that prices are created by supply and demand, just like on a stock exchange. So, as a seller, you set a selling price and only when that price matches an offer to buy, a purchase is made. After the sale, the product is checked for authenticity by StockX and sent to the customer.
Brands and vintage fashion
Branded and vintage fashion are popular items for reselling. Many people are looking for unique pieces or well-known brands that are no longer available in stores. If you are interested in branded and vintage fashion, reselling can be a great way to be profitable.
Here’s how to find suitable branded and vintage fashion for reselling:
- Research well-known brands that have a high resale value. Look out for sought-after designer brands, limited editions or vintage pieces that are particularly popular with collectors.
- Search for thrift stores, flea markets, online marketplaces or specialized vintage boutiques. These places can offer real treasures to replenish your stock. When buying vintage fashion, pay special attention to the condition of the clothing to make sure it is in good condition.
- Pay attention to trends and current events. Some brands or pieces may fetch a higher resale price due to current fashion trends or celebrity buzz.
- Photos and detailed descriptions are crucial. To appeal to buyers, you should take high-quality photos and give accurate descriptions about the items, including size, material and condition.
- Use social media to promote your items. Instagram is especially popular for marketing fashion pieces. Create an engaging presence, share photos of your articles, and use relevant hashtags to reach your target audience.
- Pay attention to the pricing. Research the prices of similar items to develop an appropriate pricing strategy for your product. Take into account the condition and demand for the item.
When reselling branded and vintage fashion, it’s important that you stay on top of fashion trends and demand for specific brands. Good quality items, effective marketing and competitive prices are critical to success.
For larger orders are suitable so-called vintage-wholesales. These are large packages of vintage clothing that you can get very cheap in relation to the sale price. You can find reputable vintage wholesalers on Trustpilot.
Sales: If you want to specialize in vintage clothing, it’s worth opening a themed store on eBay, Etsy or your own online store. You can also market your store under the keywords #fashion and #sustainability on social media platforms. An exemplary example of online marketing of a vintage store on Instagram is represented by the company Heartlight Vintage:
Trading cards and toys
The area of reselling also includes the exciting world of trading cards and toys. Reselling trading cards focuses on popular trading card games such as Magic: The Gathering or Yu-Gi-Oh!
These card games have a passionate fan base that is constantly on the lookout for rare cards. When reselling toys, different types of products can be interesting, such as action figures, dolls or board games.
To be successful in reselling trading cards and toys, there are some important points to consider. First, it is important to keep a good eye on the market and trends.
Popular cards or toys can increase in value over time, so investing in them can be beneficial. It is also advisable to check the condition of the products, as items in good condition or unused can often fetch a higher price when resold.
Another consideration when reselling trading cards and toys is the authenticity of the products. Since counterfeiting is not an uncommon problem, especially with popular collectibles, buyers should be cautious and research well to ensure they are buying genuine and valuable pieces.
It is also important to note that the market for trading cards and toys is very dynamic and constantly changing. Popularity and demand can shift quickly, which is why it is advisable to always stay up to date and closely follow trends and developments.
By paying attention to these points and closely monitoring the market, trading cards and toys can be an interesting niche in the reselling business. Finding the right pieces and selling them at a profitable price can be a rewarding way to earn extra income.
Tip: At shopping events, such as Black Friday or Glamour Shopping Week, you can get hold of low-priced products. Especially interesting for resellers is Lego merchandise (technology, houses, castles, movie related sets & large sets) with great discounts.
The best buys on used toys are often found at flea markets, Shpock or eBay classifieds. Especially at flea markets you can often find reselling products, the value of which the sellers do not even know. For starters, this is the ideal way to get high margin products.
The necessary know-how helps you to enhance products before they are sold. Broken electronic devices in particular are often sold cheaply and can greatly increase in value through small tinkering.
With a little more startup capital, you can also begin reselling new merchandise. You can find suitable offers on the following platforms:
- HEO (merchandise, licensed goods, toys, trading cards)
- Blackfire (board games, trading cards, action figures)
- OFCS (Yu-Gi-Ho, Pokémon, figurines, merchandise)
- Helbig wholesale (toys in all categories)
Sale: eBay is a very good place to sell toy items. Particularly valuable items can be sold on Catawiki or themed marketplaces. Specific collector target groups are directly addressed here.
Wholesale goods
Another way to be in the reselling business is to resell wholesale goods. These are products that are purchased in large quantities directly from the manufacturer or from a wholesaler and then offered for resale.
Compared to other reselling categories, wholesale reselling offers several advantages, such as the ability to purchase products at a lower price, increasing potential profit. However, it is also important to consider some factors to be successful in wholesale resale.
First of all, for wholesale goods, you should carefully check the suppliers and the quality of the products. It is important to make sure that you are buying from a reputable supplier and that the quality of the goods meets your expectations. The assortment is also an important factor – products should be chosen that sell well and appeal to a broad target group.
Another important point when reselling wholesale goods is to monitor the market and trends. There are many resellers selling on the same platform, so it’s important to keep an eye on prices and competition. Popular products can fluctuate in price, so it’s important to monitor the market closely and react quickly if necessary.
In summary, wholesale reselling offers many opportunities and can be a profitable niche in the reselling business, but requires careful planning and monitoring. By vetting suppliers, choosing assortments carefully, and keeping an eye on the market, you can be more successful at reselling wholesale merchandise and maximize potential profit.
Sales: eBay and Amazon are particularly suitable for the sale of wholesale goods.
Criteria for the selection of a reselling platform
When choosing a reselling platform, there are some important criteria to consider in order to be successful. In this section you will find the main points that should be considered.
These are the largest reselling platforms:
Each platform has its advantages and disadvantages. Accordingly, you should check some criteria before making your decision. Below I have listed these criteria for you.
Fees
Both Amazon and eBay are very well-known online marketplaces. However, these marketplaces also charge high fees. The fees are about 10-15% of the sale price. In addition, there are fees for payment processing and shipping. For this reason, you should be careful not to end up in the red on products with a small profit margin. Here you will find a detailed overview of Amazon fees and later in this article an overview of eBay fees.
Online flea markets such as eBay Classifieds do not charge selling fees. However, the complete process has to be done manually on platforms such as eBay Classifieds, whereas on Amazon and eBay, much of the process is automated. From user requests to the creation of the shipping label, this is where Amazon and eBay consistently play to their strengths. You should also include the decrease in these “troublesome” steps in your fee calculation.
Fees can be reduced in part by having a store on eBay, or a professional seller account on Amazon. On eBay there is the Basic Shop (€39.95) and the Top Shop (€79.95) subscription. The professional seller account on Amazon costs €39 per month. As a rule, however, these subscriptions are only worthwhile once a certain number of products have been sold. For Amazon sellers, for example, the professional seller account is only worthwhile from 40 products sold per month.
Another option is to open your own web store. With a web store, you can avoid the fees charged by Amazon, eBay and other online marketplaces. However, you also have to take into account that marketing your own web store is much more difficult. Here you can find an article about the best store systems.
Traffic/visitor numbers
As the largest online marketplaces, Amazon and eBay naturally have enormous traffic. In November 2021, the eBay website was visited around 819.5 million times. The number of visits from Amazon alone was around 548.2 million in November 2021. For comparison, the number of visits to eBay Classifieds in January 2022 was around 151.2 million.
Your own web store can also be a solution. However, you should keep in mind that you are responsible for the traffic on your own online store. Starting from SEO optimization up to the placement of advertisements, you have to manage everything yourself. This can be an advantage, but also a major disadvantage.
Product presentation
The presentation of the products is essential for the success of your business. A respectable listing can significantly improve organic rankings. This can lead to an increase in the number of visitors and sales.
You should choose the right platform for the right kind of product. For example, presenting a product costing several thousand euros on eBay classifieds is not the perfect choice.
Interfaces
Some platforms offer the possibility to connect so-called third-party tools. These tools help you automate the administrative work of your business and save you a lot of time.
Nowadays there are great tools that can multiply your sales opportunities. The best tool for Amazon is Helium 10. For example, as a reseller of Helium 10, you will be supported in the following tasks:
- Determination of the sales potential
- Find valuable keywords
- Optimize Amazon Listings
- Analysis (e.g. Competitor Ranking)
Here you can register for free at Helium 10. You can also use this Helium 10 coupon to get a 20% discount for 6 months and use all features unlimited:
The Guide to Reselling Start
Step 1: Choose reselling niche
You should mainly focus on one particular area when reselling. That doesn’t mean you shouldn’t sell other products, but at least you can prove you’re an expert in a particular field.
In this area, you can also offer customers a particularly good service and quickly determine the value of a product without having to do research every time.
To find out a suitable niche for your business, I recommend you to write down once all the topics that seem interesting to you. Then you can check the potential of each niche. During the exam, you should pay special attention to the following points:
- Competition: Who are your competitors? Do you even have a chance?
- Seasonality: Are your products only in demand during a certain season (e.g. Christmas items)?
- Price range: How much are your products worth?
- Availability: Are your products available quickly and with little effort?
- Demand: Is there enough demand for reselling items in your area?
- Required capital: Do you have enough capital available?
Step 2: Buy products
You can use various online platforms to purchase goods. Of course, there are also buying opportunities available outside the Internet where you can grab very good bargains.
Flea market
Especially in the beginning, flea markets are the ideal place for resellers to shop. There you can often find products whose value the sellers do not even know. Thus, flea markets are the ideal way to get high-margin products.
There are two rules to grabbing the best deals at a flea market. Either you should drop by right at the start to get the best products or visit the flea market just before the end to get the best prices. Many sellers lower their prices towards the end of the flea market in order to have to take as few goods back home as possible.
In addition, you should always negotiate at flea markets and not be immediately deterred by prices that are too high. A particularly good tactic is to buy multiple products from one booth for one total price.
eBay Classifieds
On eBay Classifieds, most offers are only played regionally and according to topicality. Since there are rarely commercial sellers on the platform, you can often find cheap prices. Similar to a flea market, you can negotiate with the sellers and include several products in the scope of delivery. The best deals are displayed when you search nationwide and view the latest offers first.
ebay classifieds is especially suitable for consignment goods. These are, for example, book boxes, flea market boxes, attic finds or toy collections. The purchase of such boxes is always a bit riskier, because not all products are suitable for resale, but you get relatively cheap products, save shipping costs and possibly land some lucky hits.
There are many scammers on eBay classifieds who sell products at unrealistically low prices. If a seller has only been active on the platform for a short time, does not accept pickup or Paypal, or uses images from the Internet, you should look for another offer. You can recognize scammers on eBay classifieds by these characteristics.
eBay
eBay is only conditionally suitable for the purchase of reselling items. Here, on the one hand, there are high fees that have to be calculated into the prices and, on the other hand, the offers on eBay are also visible to end customers, so that no large price markups can be made.
Nevertheless, you have the possibility to find good bargains on eBay under certain conditions:
- Luck: You happen to find a good offer
- Condition: The product is defective and can be upgraded
- Knowledge: You know the niche and already have buyers
- Listing: The product is poorly marketed
- Quantity: The offer is a bundle or remnants
You can also participate in auctions on eBay. For example, if sellers post their products with the wrong keywords or use bad images, significantly fewer visitors will be drawn to the offer. In such auctions, you can even work with tools that automatically bid up to a certain point, saving you some effort.
Amazon
Amazon is known for its deep discounts and sale events. These may well be worthwhile for resellers in certain areas. Black Friday, Cyber Monday and Prime Day are particularly interesting here. For example, Lego sets are so heavily reduced at such sales events that the offers become interesting for resellers.
Merkandi and Restposten.de
Merkandi and Restposten.de are B2B marketplaces that specialize in special items and large quantities, respectively. Both platforms are characterized by a huge selection of B2B offers, some of them with very good prices. In addition, these platforms offer the opportunity to make important business contacts, because as a registered buyer you have access to the contact details of the sellers.
Restposten.de
On Restposten.de you can find special items of all kinds. This includes products that are to be sold due to returns, insolvencies or sales. Thus, sellers often have a great interest in getting rid of the goods as soon as possible, which in turn can have a beneficial effect on negotiations.
The offers on Restposten.de are sorted by different categories:
- A-goods stands for as good as new products
- 1B goods stands for products with small blemishes
- B-goods stands for products with visible defects and possibly even usage restrictions
- C-goods stands for untested returns
You should be careful with posts whose exact content is unknown. On Restposten.de sometimes mixed pallets are offered, where the content and condition of the goods have not been checked.
As soon as you want to buy something on Restposten.de, you have to sign up for a subscription. You can either opt for a 4 month term for just under €70 or a 12 month term for just under €100.
Merkandi
Merkandi has twice as many members as Restposten.de and also offers an international product range. Here, too, the products are divided into A, B and C goods. In addition, the categories wholesale, remaining stock and auctions are offered. The product range can therefore be differentiated a little more precisely, making it easier to search for specific products.
Merkandi offers additional features like a seller directory and the blacklist.
The seller directory lists reputable wholesalers and the blacklist represents a list of merchants that have received bad reviews in the past.
A membership at Merkandi costs 100 € per year.
Specific marketplaces
As already mentioned, you can find your own marketplaces for almost every topic. You can easily find these providers via Google search. Below I have listed examples of such marketplaces:
- Vinted: Marketplace for used clothing of all kinds
- StockX: Marketplace for sneakers, collectibles and limited edition fashion
- Catawiki: Auction house for collectibles and expensive objects (e.g. precious stones, wine, whiskey, art or classic cars).
- Etsy: marketplace for handmade or vintage products
Retail
Of course, it can also be worth looking for good deals in retail stores. In some cases, local stores start their own sales or offer discounts that can’t be found online.
Tip: You can scan products without barcodes using the Amazon Seller Account app. The corresponding product is then determined on the basis of the shape. This way you can find out at what price it is currently trading.
Step 3: Calculate reselling margin
Right from the start, it is important to structure your own inventory and create an overview of all costs. Not only the purchase price should be covered by the sales price, also relevant are advertising costs, own labor costs, shipping costs, etc.
You can initially create the margin calculation and inventory planning in Excel or G-Sheets. You can decide for yourself exactly how you want to proceed. However, your sheet should contain the following columns:
- Product category (e.g. brand)
- important information about the product (size, color, material, defects, etc.)
- SKU (Stock number)
- Costs
- Acquisition costs: All costs associated with the purchase of the product.
- Recruitment fees: Some platforms charge recruitment fees
- Advertising: cost of advertising
- Selling fee: Selling fees are also charged by the respective platforms
- Shipping costs: costs for the shipment of the goods
- Time: Cost of own working time
- Total costs (sum of all costs)
- Selling price
- Profit
Here you can see my Excel sheet as an example:
Of course, many columns can be added to the table. In the beginning, it is sufficient to focus on the essential characteristics. Later, you should use a tool for documenting the inventory and calculating the margin.
Step 4: Build store and set products
ebay and Amazon offer you the possibility to create your own store. A store is basically a dedicated sales page on a selected platform. Often you can customize this with a description, profile picture and banner. Moreover, the store offers you more marketing opportunities and you can build a firm and well-known position in your chosen niche.
How to set a product is relatively self-explanatory, both on eBay and Amazon. It is important to use the right category, relevant keywords and good product images. You can also work with HTML in the product description.
It is important that all relevant keywords are in the title. However, readability should not be compromised in the process. You can find out these keywords through other offers or the automatic search suggestions.
When you enter your product in the search bar, several searches are suggested. You should make a note of these and apply them when they apply to the product.
The product images should be of very good quality and should exclusively depict the product for sale. For the perfect shot, you photograph the products in a photo box.
You should post several pictures of each product from different perspectives. Additionally, detail photos (e.g. of the fabric) would be beneficial.
Step 5: Logistics in reselling
The first preparations for the logistical steps were already completed with the creation of the inventory file. Assigning the SKU will help you identify each product. This allows products to be quickly retrieved from the warehouse, packed and shipped. Accordingly, the SKUs of the products must be visible in the warehouse.
Shipping labels can be purchased and printed directly from Amazon and eBay.
You can buy packaging materials relatively cheaply on Amazon. For this, it makes sense to use your Amazon Business account and save money through discounts for business customers. There is a big store on eBay called Verpackungsexpress24, which offers packaging materials at good prices.
Important: Anyone who puts packaging into circulation in Germany is obliged to take care of the return of this packaging material. This is regulated by the Packaging Act (VerpackG). Packaging licensing gives companies the opportunity to transfer their take-back and recycling obligations to a dual system.
Returns in reselling
Every buyer in Germany has a 14-day right to return their goods purchased online. It’s important that you plan for these returns and know how to handle them.
When selling collectibles or expensive products, you should insure yourself against damage or diminishing value from the customer. For example, just opening a new Lego set drops the value tremendously. In your terms and conditions you can add the following note:
“You only have to pay for any loss in value of the goods if this loss in value is due to your handling the goods in a way that is not necessary for testing the quality, characteristics and functioning of the goods”
Taxes in reselling
As a reseller, you are an entrepreneur who is required to file a business registration and document all business transactions concerning the company’s finances.
At the end of the year, you must submit a profit statement, a tax return and a sales tax return to the tax office. In addition, monthly or quarterly advance sales tax returns may also be due.
It’s important that you document all money movements related to your business.
There are many ways you store and file your data. You should think about the exact structure of your accounting in advance, so that you can access your data whenever you need it.
Small entrepreneurs classified by the tax office according to § 19 UstG remain unaffected by the advance VAT return. As a small business owner, you do not have to show sales tax (= value added tax) in your invoices. In return, however, you will not be reimbursed for the “input tax” (= sales tax, for incoming invoices).
Especially the recording of the incoming invoice will be a bit more difficult for you as a reseller, because you mainly buy your goods from private persons who do not issue invoices. To do this, I recommend you get in touch with your tax advisor and discuss the options available to you.
Scale Reselling Business
Basically, the growth of a reselling business is relatively difficult to scale. The process of product discovery and product sales repeats itself over and over again, but is individual for each product. Accordingly, this process can only be automated in very isolated cases. Only when it becomes worthwhile to hire employees, automate certain steps in the process and list new products is real growth possible.
Once you’ve built a decent store with a few hundred items and are generating enough sales, you should start optimizing your processes. For example, you can make some steps easier by using certain tools or by creating more professional equipment.
You should start investing in new goods when you have made enough profits and have been able to build up reserves. You can then reinvest these profits in new merchandise and place offers that generate constant revenue for you. Such bulk orders save research work and create a constant source of income.
Conclusion – Is Reselling Worthwhile?
Basically, reselling is a very lucrative business model where you don’t need much startup capital and can generate revenue quickly. However, one should not neglect the fact that trading returns is very time-consuming and location-based.
Whether the business model is suitable for you depends on your own goals. If you are solely interested in making a lot of money, then I would advise against it. After all, without a strong passion for buying and selling, and without the expertise on a particular niche, you won’t necessarily become financially independent as a reseller.
If you’ve decided to get started as a reseller, you can start by selling books, games, or other things lying around your home, for example. This way you can try out the business model without any risk.
If, on the other hand, you’re more interested in a business model that can scale quickly and without employees, you should check out this article on how to open an Amazon store.
FAQ – Frequently asked questions
As with any business model, whether reselling is worthwhile depends on various factors, such as your commitment and expertise. In the article, you’ll find everything from a comprehensive assessment to concrete practical tips on how to build a successful reselling business.
Reselling is a business model in which products are purchased and then resold, ideally at a higher price. Most of the time these are remnants, used goods or customer returns. Even with little start-up capital, a serious reselling business can be set up.
Yes, reselling is allowed. However, as soon as you intend to make a profit, you must register a business. If you sell exclusively your old stuff, then of course not.
When reselling, it’s especially important that you do thorough product research. I have presented you a very good strategy in our article.
Reselling is a very time-consuming and location-dependent business model. That means you should be interested in this business model not only because of the financial aspect, but also out of passion. In addition, you should have a fundamental interest in product research, negotiations and online store creation.
If you are looking for a side income solely because of the financial aspect and you already have startup capital available, other business models are much more suitable.
In principle, all products are suitable for reselling. A distinction is made between reselling new goods and reselling used goods. At the beginning of your reselling business, you should focus mainly on used goods where you need little start-up capital.
Minimum purchase quantities are very often required for new goods. That’s why you should have some startup capital available before investing in new merchandise. In addition, you should keep in mind that the diversification of the product range in your online store decreases with large purchase quantities of new goods.
One strategy to find suitable reselling products is to use metrics such as high demand and low competition. A suitable platform for this is Helium 10. You can find instructions on how to find suitable reselling products in the article.
You can find instructions on how to start reselling in the article. The basic steps in this business model consist of selecting the right niche, conducting product research, creating quotes, and logistics (e.g., warehousing and shipping).
You can find information about taxes in reselling in the article. In Germany, anyone who makes a profit is required to file a business registration with the relevant municipal authority. Different taxes are due depending on the status (e.g. income tax or trade tax).
