A reseller business allows a third party to cater to more customers by reselling the original products and getting a cut of the profits for themselves. This type of drop shop business requires not much capital and is greatly affordable as well as profitable for the new entrepreneurs on the block. The reseller does not have much work except to act as the convenient middleman between the manufacturers and the potential customers.
In this way, the workload is also less. There is no added burden to selling your own products; instead, you are just simply marketing products from established brands, in a proper customer base. Whether it is clothes, shoes, or accessories, the possibilities of reselling items are simply endless. The best part about this reselling business, or running such a company is, that there is no added cost of keeping a product line or supporting the manufacturing of products for sale. One can simply keep a database of all the items that one is interested to resell.
The upgraded and new age version entailing the future of e-commerce has arrived. However, some old problems remain just as it had been before, the issues with sales, and attracting more customers. The same problems are still stalking the horizons- where to sell, how to market, balancing customers and profitability, and growing the business. Everyone is trying to stay away from the curveball being thrown at them, but balancing both at the same time is far from simple.
Why You Should Try Selling Online in 2019?
In today’s fashion culture, there is definitely no bad time to just purge your closet and taking out all the unnecessary items. Maybe to us it just might be getting rid of items we don’t wish to keep with us anymore, however, according to leading online business reports and studies the industry of reselling cloth, and this culture surrounding it, stacked up to $16 billion in 2015 alone. The current business forecasts also foretell a six percent increase in this rising industry every year hence.
Not only that but also the cost of the shipping charges for the parcels is lesser than the average product selling a business, which can get sky high at times. The only cost that has to be borne by the person running the business is the cost of the products that the customers’ orders through the online retailing shop that the owner of the company has set up- this entire process of online processing and purchasing of products really helps to minimize costs to a large extent.
Thus, the financial cost for setup is low in these ways; tone can understand the benefits of setting up an online reselling business are really profitable and low on the initial cost. New and unique margins can be set by the entrepreneur when they become a reseller because they are not bound by any other restrictions that might happen in other kinds of businesses. The prices of the products can be kept at such a rate which ensures not just the easy sale of the products by the customers, but also a high-profit margin by the reseller. This is further ensured by the initial low cost of the products added in the inventory of the reselling company.
As usual, by the rules of the market, this guarantees a large, profitable business for someone who just joined the reselling industry. The gains from running such a business really know no bounds as the prices can be set according to one’s own wishes, as long as it still caters to the projected audience. The only restriction comes with the industry set prices of the product that is already prevailing in the market, because if the resale price exceeds that, then no customers will be drawn to the actual resale product, and will buy the original ones from the actual manufacturers instead.
Some Reselling Websites/Apps
- The RealReal is given the status of mother of all the reselling sites. The process of the delivery is fairly simple. If the reseller lives in a qualifying city (from their list) then, the stuff will be picked up by someone sent from the site.
- Vestiaire Collective is a humungous reselling site catering to both Europe and the US, including mostly luxury items under its delivery umbrella. The stats for this site shows that an approx. amount of 20,000 items are added to its inventory every day.
- Material Wrld is a site that simply does all your work without having to put any extra effort by the reseller. The only work required by the reseller is, to load up the labeled kit bag sent (only with acceptable brands as mentioned in the website), and then carry out all the instructions.
- The Poshmark is an app that ensures that the users get their listings under a minute or so. The process is fairly simple to upload photos of the products, select the category it falls under, list the pricing, and then wait for the actual sale to take place.
This reseller business surely comes with a lot of unusual perks. Those who are already running such a new enterprise would know that there is no need of giving full time to it. The time commitment to one’s work really decreases by a significant standard. Most of the work that is gone to its smooth workings is usually more than ever, automated in nature, – thereby, cutting down the manual engagement need by the owner to run everything smoothly.
There is an essential time saving as well because there remains no need for extra efforts behind the packaging and shipping of products to the customers. The financial cost and all of the other resources to require starting a reselling business is also essentially extremely lower than any other entrepreneurial ventures. This serves as the perfect solution for those new entrepreneurs on the block looking for starting a new business on the model of low risk, less financial cost and also constant certifiable sales and profits.