How to Start a Reseller Business Online
Starting a reseller business online can be a great option for first-time entrepreneurs. But just like any other online business idea, a reseller business requires a lot of patience and commitment. In this article, you’ll learn the meaning of a reseller, why you should become a reseller, how to be a reseller online, reselling products, services, and much more.
What is a Reseller Business Online?
A reseller business online allows you to resell products or digital services bought from manufacturers (products), freelancers (digital services) to customers, and on the other hand, allows you to resell consulting services from SMEs to those who need the service.
The reseller business online model is affordable, making it a great option for new entrepreneurs. As a reseller, you’re essentially the middleman between the manufacturer, freelancers, SMEs, and customers. You won’t need to create your own products or provide any digital service or even provide the end services yourself, but you’ll still have an extensive selection of products, digital services, and consulting services to choose from.
Whether you want to resell clothes, resell web design services or resell consulting services, you’ll quickly learn you can sell anything online.
Your reseller online store or website can expand into other niches without expensive fees, hosting fees, additional costs, or high shipping costs.
What is the Difference Between a Reseller and a Distributor Business?
A distributor buys reseller products from a manufacturer, and sells them to an end consumer, or manages multiple resellers at the same time. Generally, distributors buy inventory of merchandise and tend to develop a closer relationship with the manufacturer in comparison to a reseller. Distributors may also provide help to the manufacturer with activities such as marketing, labeling, and branding. As distributors are physically holding onto the stock, they may feel more responsible and incentivised to sell the products from the manufacturers.
However, the downside of using a distributor is that they often require higher margins. This means that if a manufacturer has low margins, it might not be beneficial for them to work with distributors.
A reseller business doesn’t hold any merchandise inventory to be resold. On the other hand, you do not need the experience to offer digital services yourself as everything is outsourced.
You simply act as a middleman between the Manufacturer or Freelancer and the customer.
Why You Should Start a Reseller Business Online?
There are a number of reasons to become a reseller. From easily sourcing from a diverse product selection to lower business costs, you’ll find that starting your own reseller business online has never been easier. You’ll get to reap the rewards of starting a business from financial gains to pursuing your passion. Here are a few reasons why you should become a reseller online:
Sell an Extensive Number of Reseller Products: If you become a reseller you’ll be able to sell a diverse range of products. If you resell clothes, as your business grows you can resell shoes, jewelry, accessories, handbags, lingerie, or other related products. Adding other products to your reseller online shop won’t cost more money as you only pay for goods as customers buy from your store.
Launch Your Business Fast: You should become a reseller because it allows you to start selling the same day you start your reseller business. After you’ve added a few great reseller products and some content to your store, you can start marketing your business. You can launch your reseller business online in a day. You won’t need to wait for inventory to arrive or wait for anything at all for that matter.
You can set up and launch on the same day.
Carry no Inventory, no risks, no head aches: The best part when you become a reseller is that you don’t have to carry inventory. You can use a reseller dropship marketplace like Oberlo which allows you to resell goods without having to buy bulk inventory in advance. You only pay for goods as customers order them from your website, making it a great choice for new entrepreneurs. Even if you sell niche products or boutique clothing you can still make a profit without holding stock.
Expand Into Other Verticals Easily: If you decide to become a reseller, you won’t be limited by your product category. When entrepreneurs wholesale products, it can be expensive to buy bulk inventory, pay shipping fees, and have enough product selection. However, resellers can test other niches without having to buy additional inventory. You can grow your reseller product selection with the click of the button.
Lower Time Commitment: Those who become a reseller will enjoy that they can run their reseller business without having to spend all of their time on it. Most of the processes are automated, allowing you to manage your business easily. You also save time since you won’t need to package or ship products to your customer.
Lower Financial Risk: A benefit to starting a reseller business online is that the financial cost is low. This is the perfect business for the budget-conscious, new entrepreneurs or the risk-averse. You won’t need to buy bulk inventory. Shipping fees aren’t sky high in a reseller business. You only pay for goods as customers order them through your reseller online shop. Thus, the financial cost for setup is low.
Set Your Own Margins: When you become a reseller, you’re free to set your own margins. You can choose to price your products any way you want. Since the cost of goods is low, you can price your products to ensure your reseller business is profitable. The higher you set your price the more you can make. Be sure to look at industry standards for product pricing.
In a reseller business online, you can sell virtually anything. You’ll be able to find a variety of great products or digital services. You’ll be able to resell clothes or resell digital marketing or even consulting services. Whether you’re looking for a reseller product from a trendy niche or a high-demand digital service such as SEO, you’re sure to find an amazing niche that you can resell online.
Clothing is a huge opportunity that includes women, men, and children of all ages. When running a reseller clothing business you can test a few different clothing niches at a time and decide which ones work the best for you. You can remove low-performing styles without any cost to your business, and add new items as they come into fashion. When setting up a reseller business idea like clothing it is important to plan ahead as clothing lines are cyclical depending on seasons, and popular holidays
Pet supplies can range from pet food to clothing, to leashes and bowls. With so much to choose from starting a reseller, pet supplier business is a great idea. Dog and cat toys and accessories are obviously the most popular items to start with but reseller business ideas are endless in this area and you can branch into small rodents, pigs, or fish. As the pet industry is growing, distributors are supplying products that meet every need of pets. Use the likes of social media to share your products with your audience to get the most out of your products, while promoting customers to share their purchases online too.
Price Your Products Well: While marketing your products or services is important, pricing your products and services well can help ensure that your business remains profitable. Some blogs recommend having a $2-$5 profit to stay competitive. This is terrible advice. Your product or digital service price shouldn’t just cover the cost of goods or customer service. It also covers the cost of marketing, scaling, and business development. As long as your product or service price makes sense for the market, you don’t need to underprice yourself.
By lowering your prices to stay competitive, your business inches closer to failure.
Create Offers, Adverts, and Promotions: In general, Facebook ads tend to be the most popular choice for reseller businesses online. Impulse buy products work really well on the platform. Facebook also tends to be better than Google as customers don’t see other competing products in the ads. With Google ads, competitors will lower their prices to drive competition out deeply affecting their margins. With Facebook ads, customers only see your product’s ad as they scroll through their feed. You’ll need to experiment with different products to create your money-making ads.
Create Content: From video marketing to blogging, content creation can help elevate your brand’s presence. By consistently creating content for your brand, you’ll find that over time your sales will grow. You can monetize videos by running ads on them. You can monetize blog content by retargeting your blog traffic. The more high-quality content you create, the more likely you are to drive traffic back to your store.
You Can Earn More Money: You’ll be able to set your own margins and keep your reseller business costs low. This type of business model gives you a better chance to earn more money than many competing brands. With low product pricing, you’ll be able to offer market pricing which still allows you to run a profitable business.
With a reseller business, your store or digital service website will still be its own brand. You’ll be able to grow your own loyal fan base. Your website can be designed and styled any way you like. You’ll get to build strong relationships with your customers. Promotions, sales, and product pricing will all be done by you. A reseller business allows you to find products to sell to your customers easily. How you position your brand and market your products is what allows you to really shine and succeed.
Interested in starting your first reseller business online? Become an entrepreneur today!
You don’t need any experience
Your business website comes with backup suppliers
There are excellent profit margins no one can find outside the Digital Services space.
Get reseller business websites that have unlimited growth potential meaning it is easy to scale up to double income without a lot more time being spent.