How to Start a Reselling Business: Bulletproof Ideas and Expert Tips

Starting a reselling business can be one of the smartest moves in the ecommerce playbook. Low upfront costs? Check. Flexible work hours? Double check. The thrill of turning a $5 thrift store find into a $50 sale? Priceless.

Before you start dreaming about quitting your day job and flipping sneakers full-time, let’s talk about how to pull this off. I wanted to share with you how to start a reselling business with verified insights straight from the source. So, I went looking for successful resellers to find the best strategies for getting started, and I scored some great finds.

In this guide, you’ll learn how to build a solid foundation, covering everything from picking the right niche to handling finances and making your first sale. By the end, you’ll be armed with the knowledge (and the confidence) to launch a thriving reselling business.

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Stage 1: Getting started in reselling

To get off on the right foot in reselling, start with the basics:

• Research and understand the market
• Evaluate the risks and potential benefits
• Create a business plan and set up shop
• Grow your reselling business and profit!

What is a reselling business?

At the end of the day, learning how to start a reselling business is simply about buying low and selling high. You source products from local stores, wholesalers, dropshippers, or second-hand from yard sales, thrift stores, and the like, then resell for profit. Resellers often use a combination of in-person sales and ecommerce.

What makes reselling so great?

Reselling is a red-hot business model. It’s flexible and scalable, and you can get started with little to no upfront investment. Since you don’t need to produce your items or maintain Amazon-like inventory levels, you can run this business from your garage, storage unit, or even your car.

Time for a reality check: reselling is not a “get rich quick” scheme. I don’t want to rain on your parade, but challenges and risks must be considered.

The good, bad, and the ugly

The trick to reseller success is the ability to mitigate the risks and potential disadvantages while maintaining profitability.

The good news:

• Minimal risk: You can start with items you already own. There’s no need to invest in a ton of stock upfront.
• Quick turnaround: Some items sell within a few hours of listing. High-demand resale goods don’t sit around long enough to gather dust.
• Tons of reselling options: You can resell items on platforms like eBay, Amazon, Poshmark, Facebook Marketplace, and your own ecommerce site to get your stuff in front of a huge audience. Resellers pop up in real life, too. It’s common to see them running physical stores or booths at local events.

The not-so-good:

• Competition: Getting noticed in a saturated market takes good marketing strategies and branding.
• Inventory management: Keeping track of a large amount of stock can be challenging.
• Quality control: If you’re sourcing from a third party, you don’t always have control over quality or availability.

There are also legalities and taxes to consider. Depending on location, sales tax, business licensing, and other legal requirements vary. Professionals like accountants can often help determine what applies to a reselling business and navigate the rules and policies.

Choose a business structure

To keep things on the up and up, you’ll need to decide how to structure your business. The most common options are:

• Sole Proprietorship: Easiest to set up, but you’re personally liable for any business debts.
• LLC (Limited Liability Company): A great balance of protection and simplicity.
• Corporation: More complex but ideal if you’re planning to scale big.

Consulting a legal or tax professional can help you choose the correct setup for your goals. Good advice in this area can pay for itself in the long run.

Know the laws and regulations

Rushing into a business venture without understanding the legal requirements is a rookie move. If you don’t want to call in a lawyer or accountant just yet, it’s even more important to research local regulations. Your local municipality, city, county, and state are all helpful in navigating the processes of:

• Registering your business: Check local regulations for required permits and licenses.
• Sales tax exemption certificates: This allows you to buy products tax-free for resale, but you’ll need to collect sales tax.
• Understanding tax obligations: Stay ahead of income tax requirements. This may require visiting the IRS website to learn about business taxes or getting an employer identification number (EIN).

Business finances

Don’t mix business and pleasure. Open a separate business bank account to track income and expenses accurately. Many banks offer small business-friendly accounts with low fees and helpful financial tools.

Generally speaking, to make bookkeeping easier:

• Accounting software like QuickBooks or Wave can be used to manage cash flow.
• Track expenses (inventory, shipping, marketing, platform fees) for tax deductions.
• Set aside money for taxes to avoid surprises at tax time.

Accounting software can help you monitor your cash flow and keep you out of the red. It also helps keep detailed records of expenses and income. Your accountant will probably thank you, too.

Stage 2: How to start a reselling business from the ground up

With a solid foundation to build on, it’s time to start reselling. A business isn’t just about having great products. It’s about knowing where to sell, setting prices, and keeping everything running smoothly.

Buckle up. Here’s where you’ll learn from the experts:

• Finding the right niche and understanding what sells
• Developing a plan to stay organized and profitable
• Sourcing inventory from reliable places
• Pricing strategies that balance profit and competitiveness
• Managing inventory and logistics without the headaches
• Optimizing shipping and handling returns like a pro

Grab your favorite note-taking app or pen. This is all based on what works for expert resellers, so you’ll want to refer back to it later.

Finding your reselling niche

The first step is to research the market. Trends shift constantly, and staying ahead of them can mean between a booming business and a pile of dusty inventory. Study top-selling products on eBay, Amazon, and trendy marketplaces like TikTok Shop. Trend analysis tools like Google Trends also have a lot to say about what’s hot and what’s not.

Finding the right niche is just as important. Instead of selling a little bit of everything, focus on a specific category where you can build expertise. Customers tend to trust sellers who specialize, whether it’s vintage clothing, rare collectibles, or refurbished electronics.

You can turn a profit with just about any product. Hosts Leah and Kayla of the Ready to Resell podcast suggest testing different categories to find that sweet spot between your personal interests and what buyers are actively looking for.

Browsing physical stores can also be valuable. Estate sales, thrift shops, and clearance racks are treasure troves for resellers who know what to look for. Keep an eye on local trends too—sometimes what’s trending in one region hasn’t caught on elsewhere, giving you an edge.

Many successful resellers recommend starting small to learn the ropes. Take a look at what you already have, and keep an eye out for things to part with. High-value items are where it’s at if you want to increase profits.

Is it worth it?

While reselling certainly can be worth it, success isn’t guaranteed. Not every product is a golden ticket. Before rushing head-first into a niche, analyze pricing trends, sales volume, and customer demand. Ask yourself:

• Are people consistently buying this item? Check sold listings, not just active ones.
• Is the market oversaturated? Too many sellers can drive prices down and make standing out more difficult.
• Are there decent profit margins? Is there enough room for a worthwhile profit after fees, shipping, and acquisition costs? Higher-value items are often more sought after. There’s something to be said for turning a larger profit at a smaller scale.

Some niches offer higher returns but require more effort. Electronics and designer goods can be lucrative but often have higher risks, such as scams and returns. On the other hand, niche collectibles and rare finds may sell for more but could take longer to move.

The best reselling business ideas

The sky’s the limit with reselling business ideas. Many successful resellers suggest getting started with things you already have:

• Clothing & accessories: Vintage clothing, handbags, and high-end brands perform well.
• Electronics & gadgets: Used smartphones, gaming consoles, and accessories have strong resale value.
• Home decor & furniture: Mid-century modern and handmade items are in demand.
• Pop culture: Rare collectibles and themed items based on popular shows, films, games, and books are always interesting to the right audience.
• Sports & outdoor gear: High-end bicycles, camping equipment, and athletic shoes have dedicated buyers.

Once you learn first-hand how all this works, branch out with the right business model. This could include:

• Dropshipping: Sell trending products without holding inventory.
• Subscription-based reselling: Monthly mystery boxes or curated bundles keep customers coming back.
• Wholesale reselling: Buying in bulk at discounted rates and selling individual items at a markup.
• Flipping limited-edition items: Sneakers, watches, and exclusive merchandise often skyrocket in value.

The right niche depends on your interests, knowledge, and ability to source profitable items. Test a few categories, track results, and double down on what works.

Developing a business plan

Every great business starts with a plan, and learning how to start a reselling business is no different. Think of your business plan as your roadmap. It keeps you focused, organized, and prepared for the unexpected. Start by defining your goals. Are you looking for a side hustle or want to build a full-time business?

Key elements of a reselling business plan:

• Niche & target market: What products will you sell, and who is your ideal customer?
• Sourcing strategy: Will you buy wholesale, thrift, or use a dropshipping model?
• Budget & expenses: List your projected costs, including inventory, platform fees, marketing, and shipping.
• Marketing strategy: How will you attract customers? Consider social media, email marketing, and paid ads.
• Stock management: Outline your process for tracking inventory, restocking, and minimizing dead stock.

Your business plan is a living document. Update it regularly as you gain experience and refine your strategy. Having a clear plan will help you stay on track and scale effectively.

Sourcing suppliers

Your success in reselling hinges on finding reliable suppliers who offer quality products at the right price. The better your sources, the better your margins, and the happier your customers are.

• Wholesale distributors: Buy in bulk at lower per-unit costs and resell at a markup.
• Liquidation sales: Retailers often sell excess inventory at significant discounts.
• Thrift stores & estate sales: Hidden gems can turn a high profit with the right audience.
• Online marketplaces: Sites like Alibaba, Faire, and B-Stock offer bulk purchasing options.
• Local connections: Networking with real estate agents, auctioneers, and business liquidators can provide leads on estate sales and bulk buy opportunities.

Fulfillment models

Choosing how to fulfill orders is just as important as finding products. Each model has its advantages and trade-offs:

• In-house fulfillment: Store and ship products yourself for maximum control and profit margins.
• Dropshipping: No need for inventory—your supplier ships directly to your customers.
• Third-party logistics (3PL): Outsource storage, packing, and shipping to a fulfillment center, saving time and effort.

Pricing resale products

With retail pricing, the goal is to stay competitive while making a decent profit. To do that, you’ll need to know precisely how much it’s going to cost to source and sell resale items.

• Cost of items: The price you pay for your inventory.
• Shipping fees: Whether you or the customer covers it, this affects your bottom line.
• Platform fees: Sites like eBay and Amazon take a cut of each sale.
• Transaction fees: Payment processors charge for each transaction.

If you’re sourcing products on the go, being familiar with costs allows you to crunch numbers on the fly to determine if it’s worth it.

Pricing strategies

• Competitive pricing: Match or slightly undercut competitors to stay in the game.
• Price skimming: Start high for new or in-demand products, then lower prices as competition increases. This works well for limited-edition or trendy items.
• Penetration pricing: Offer lower prices initially to attract buyers and build a customer base, then increase prices once established.
• Value-based pricing: Price according to perceived customer value. For example, collectors will often pay a premium for rare items.
• Seasonal pricing: Adjust pricing based on seasonal demand—holiday decor sells best in Q4, while outdoor gear moves in summer.

Experiment with different strategies and track results to see what works best for your business.

Effective inventory management

Staying organized is the key when learning how to start a reselling business. Poor inventory management leads to lost sales, overspending on storage, and frustrating stockouts. Keeping everything organized requires consistent effort, but you can streamline this daily task in multiple ways:

Smart storage solutions

• Use shelves, bins, and racks to separate inventory logically.
• Label everything clearly to speed up order fulfillment.
• For delicate or high-value items, consider climate-controlled storage.
• Organize products alphabetically, numerically, or by category.
• Dedicate a workspace or designated storage area to prevent chaos.

Keeping track of stock levels

• Conduct regular inventory audits—weekly or monthly—to stay on top of stock.
• Inventory tracking tools or spreadsheets can be used to log product quantities.
• Set up low-stock alerts, so you’re never caught off guard.
• Group similar items together for faster sorting and restocking.
• Invest in professional inventory management software if you’re running a larger operation.

Automating for efficiency

• Use inventory software that integrates with your selling platforms.
• Automate reordering for fast-moving products.
• Utilize real-time tracking tools to reduce human errors.
• Platforms like Vendoo and VARStreet offer solutions for seamless inventory control.
• Forecast demand based on past sales to avoid overstocking or shortages.

You want to manage inventory and routine tasks as much as possible. This will help you free up time so you can focus on growing your reselling business.

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Optimizing shipping strategies

Shipping can make or break a customer’s experience, so getting it right is essential. The goal is to find the best balance between cost, speed, and reliability, even if your customers check the tracking morning, noon, and night.

Choosing the right carrier

• Compare rates and delivery speeds from USPS, UPS, FedEx, and DHL.
• Consider offering both economy and expedited shipping options.
• Look into regional carriers for better local delivery rates.

Packaging for protection and cost efficiency

• Use sturdy boxes, padded mailers, or poly bags based on the product type.
• Protect fragile items with bubble wrap, packing peanuts, or air pillows.
• Optimize box sizes to reduce shipping costs and prevent wasted space.

Streamlining with shipping software

• Automate label printing with tools like ShipStation, Shippo, or Pirate Ship.
• Track packages and provide customers with automated shipping updates.
• Integrate software with your ecommerce platforms for seamless order fulfillment.

Creating a clear shipping policy

• Outline processing times, shipping costs, and available delivery options.
• Be transparent about return shipping policies to avoid customer disputes.
• Offer free shipping thresholds to encourage higher order values.

Returns and exchanges

Returns are inevitable in ecommerce, so having a streamlined process can save time and keep customers happy.

Setting clear return policies

• Define the acceptable reasons for returns—damaged items, incorrect orders, or customer dissatisfaction.
• Establish a return window, typically 30 days from purchase.
• Use friendly, straightforward language to explain the return process.

Simplifying the return process

• Include a return label with each order to make the process easy.
• Offer prepaid return shipping for high-ticket items or frequent buyers.
• Inspect returned products promptly and restock items in sellable condition.

Tracking and improving returns

• Analyze return trends to identify common issues (e.g., supplier defects, incorrect listings).
• Adjust sourcing strategies if certain suppliers have high return rates.
• Use customer feedback to refine your product descriptions and avoid unnecessary returns.

You’ll inevitably need to negotiate a return or exchange. Having clear policies sets expectations and builds customer trust. Not to mention, as the reseller, you won’t have to scratch your head about how to handle this situation while you already have other fires to put out.

Setting realistic goals

Setting realistic goals helps start a reselling business by keeping you on track. Goal setting also helps you measure progress effectively. Start by defining clear short-term and long-term objectives.

Short-term goals

• Find a reliable supplier.
• Make your first sale.
• Optimize product listings for better visibility.
• Test different pricing strategies.

Long-term goals

• Expand your product range.
• Scale to multiple marketplaces.
• Develop a strong brand presence.
• Automate inventory and order management.

Breaking down your goals

Rather than setting vague goals like “increase sales,” break them into actionable steps. For example, if you want to boost sales by 20% in three months, your plan might include:

• Running a targeted ad campaign.
• Enhancing product descriptions and images.
• Engaging with potential buyers on social media.

Tracking progress and staying motivated

Use tools like spreadsheets, project management apps, or goal-tracking software to monitor progress. Regularly review what’s working and what needs adjustment. Celebrate small wins and learn from any setbacks. Every milestone achieved, whether it’s hitting a revenue goal or improving customer retention, brings you one step closer to long-term success.

Stage 3: Marketing and growth

Building a strong online presence and a solid marketing plan is key to expanding your reselling business. Success comes from making your products stand out, engaging with your target audience, and leveraging data to refine your approach.

Build an online presence with a website

Often, your website is the first impression customers have of your business, so it needs to be professional, easy to navigate, and optimized for conversions. Instead of trying to reinvent the wheel and create a website from scratch, 10Web’s AI Ecommerce Website Builder makes launching your reseller store quick and easy.

• Instant website creation: Provide a business name and description, and let AI handle the rest.
• Customizable, unique designs: AI generates a fully functional WooCommerce-powered online store that you can manage with the drag-and-drop Builder.
• Ecommerce optimization: Features like product listings, checkout, and payment integrations are built in.
• SEO & performance: The platform ensures your site is fast, mobile-friendly, and optimized for search engines.
• Automated maintenance: Security updates, backups, and performance monitoring are handled for you.

With 10Web, even beginners can create a professional reseller website in minutes. No coding or design skills are needed. A strong online store helps you stand out from competitors, drive organic traffic, and increase conversions.

Once your website is up and running, you’ve got a way to:

• Resell without the fees associated with platforms like Etsy or eBay.
• Maintain control over the site’s appearance and branding.
• Tempt customers to visit your site by publishing interesting content.
• Encourage visitors to sign up for newsletters and build your email list.
• Build your online presence and connect your site to social media and marketplace storefronts.

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Crafting compelling product descriptions

To capture your audience’s attention, write clear, engaging product descriptions highlighting each item’s features and benefits. Include keywords in the product descriptions to give search engines a clear indication of what the page is about. This helps increase visibility in search results, leading to more traffic.

Key points of a great product description:

• Focus on benefits: Explain why the product is valuable.
• Use bullet points for readability:
  • High-quality materials ensure durability.
  • Unique patterns that stand out.
  • Affordable pricing without sacrificing quality.
• Incorporate SEO keywords: Help customers find your products through search.
• Include high-quality images: Showcase products from multiple angles.
• Avoid jargon: Keep language simple and easy to understand.

Well-crafted descriptions inform and persuade buyers, increasing conversions and reducing return rates.

SEO and user experience

A well-optimized website attracts visitors and aims to please with a smooth shopping experience that converts shoppers into buyers. Good search engine optimization (SEO) improves the site’s chances of being noticed in search results. The other piece of the puzzle is about user experience. Strike the right balance between fast performance, user-centric design, and functionality for the best results.

• Plan your website’s pages and content so that each page uses relevant keywords in product descriptions, titles, and metadata.
• Optimize URLs for clarity and readability.
• Leverage tools like Yoast SEO to improve search engine rankings.
• Create blog content around trending topics in your niche to drive organic traffic.

Search engines and online shoppers both love user reviews and user-generated content. Encourage customers to provide feedback. Wouldn’t you like to know if a shopper decides to pass on a purchase due to some minor detail or why someone loves that item and keeps returning to it repeatedly?

• Make it easy for customers to leave reviews and ratings to build credibility.
• Use plugins like WP Customer Reviews to manage and display testimonials.
• Integrations with social media allow you to display user-generated content (e.g., customer photos) to increase engagement.

Frustrated users are less likely to complete purchases. Fortunately, the flip side of that cold, hard fact is also true. Provide a frictionless experience on both mobile and desktop, focusing on easy-to-use navigation and performance.

• Ensure your catalog is well-organized with filters and search functionality.
• Use WP Mega Menu or similar tools to create an intuitive menu structure.
• Make sure your website is fully responsive for mobile users.

Expanding your online presence

A strong online presence is pivotal when starting a reseller business because it increases visibility and drives sales. Maximize your website’s reach by taking advantage of reselling sites, marketplaces, social media, and maybe some paid advertising, too.

Leverage reselling sites and marketplaces

• List products on high-traffic platforms like eBay, Amazon, Poshmark, and Facebook Marketplace.
• Keep a steady flow of new listings to stay active in search results.
• Optimize listings with high-quality images and SEO-friendly descriptions.

Harness social media marketing

• Create business accounts on Instagram, Facebook, and TikTok.
• Post engaging content regularly—product photos, behind-the-scenes videos, and customer testimonials.
• Use niche-related hashtags to boost discoverability.
• Collaborate with influencers and resellers to expand your reach.

Boost visibility with a sprinkle of paid advertising

• Run targeted ads on Facebook, Instagram, and Google Shopping.
• Use retargeting ads to reconnect with potential customers who visited your store.
• A/B testing different ad creatives to optimize performance.

Learning how to start a reselling business requires more than just great products; it’s about being visible to your customers. Jessica Oman suggests keeping a steady flow of listings to tempt the algorithms of platforms like eBay and Facebook Marketplace. A consistent momentum can influence how often your listings pop up in results.

Running promotions and discounts

Want to turn those window shoppers into buyers? A well-timed promotion or discount can work wonders. It’s not just about slapping a sale sticker on everything. Strategic offers can drive urgency, increase average order value, and keep customers coming back for more.

Time-tested promotion strategies:

• Flash sales: A short-term discount creates urgency and FOMO.
• Bundle deals: Encourage bigger purchases by pairing complementary products at a discount.
• Seasonal discounts: Holiday shopping season? Back-to-school rush? Tap into key shopping trends.
• Loyalty perks: Reward repeat customers with exclusive discounts or early access to sales.

Must-have tools for promotions:

• Competitive pricing: Keep an eye on competitor prices with Price2Spy.
• Discount plugins: Set up effortless sales with WooCommerce Discount Rules.
• Subscription models: Offer exclusive VIP discounts using MemberPress or Restrict Content Pro.

Track, test, and tweak:

• Monitor sales data to see which promotions drive the most conversions.
• Experiment with A/B testing to fine-tune your offers.
• Adjust promotions based on customer engagement and seasonal trends.

Using analytics to guide decision making

Numbers don’t lie. If you’re not tracking your sales and marketing efforts, you’re basically flying blind. Analytics help you understand what’s working, what’s not, and where to focus your efforts for maximum impact.

Key metrics to watch:

• Conversion rate: What percentage of visitors actually make a purchase? If it’s low, your site or checkout process may need tweaks.
• Bounce rate: How many people leave your site without clicking anything? Your landing pages might need better design or clearer messaging if this is high.
• Average order value: Are customers buying one small item or multiple products per order? Upselling and bundling strategies can help increase this number.

Use your data to make smart marketing moves:

• Use Google Analytics to track website traffic and visitor behavior.
• Check sales performance by product. Double down on what’s selling and rethink what’s gathering dust.
• Adjust advertising spending based on what channels (social media, email, paid ads) bring the best return.
• Test product descriptions, images, and headlines with A/B testing to see what converts best.

Scaling up a reselling business

Want to go from a side hustle to a full-fledged business? Scaling up requires strategic growth, not just listing more products and hoping for the best.

Expand your inventory:

• Add variety to attract a broader audience and increase sales.
• Research market trends to find in-demand products.
• Purchase from wholesalers to lower per-unit costs, but test small batches first.
• Improve storage solutions to keep growing inventory organized and accessible.

Reinvest your profits:

• Reinvest profits into better tools, packaging, and website improvements.
• Use paid ads strategically to reach new customers.
• Offer promotions and loyalty perks to increase customer retention.
• Improve customer service with faster response times and CRM systems to track buyer preferences.

Automate everything:

• Use inventory management software to track stock and prevent overselling.
• Set up email marketing automation for follow-ups and promotions.
• Streamline order fulfillment to save time and reduce errors.

Pursuing high-value items can be an efficient way to scale your reselling business. Low-cost items require a higher sales volume to generate bigger profits. This can pose a challenge with managing all those orders and shipping.

Scaling a reselling business takes patience, smart reinvestments, and a commitment to continuous improvement. The more efficient and consistent your efforts become, the more your business will thrive.

Create your online store in minutes!

Looking to sell online? Develop and launch your store with 10Web AI Ecommerce Website Builder.

Generate Your Store

Summing up

Learning how to start a reselling business is exciting, even if it’s a little intimidating. But the water’s fine. Come on in! Start by following the advice from resellers who have been in your shoes.

Get going by setting up a few listings with stuff you already have. Feel free to jump right in with the big fish on eBay or start smaller on apps like LetGo to dip your toes in more cautiously.

If you’ve signed up on the big resale marketplaces like eBay or Etsy, you may have noticed an opportunity to display a link to your website. Set up a quick, great-looking site with the AI Ecommerce Website Builder, and drive traffic to your site every chance you get. Start attracting customers to your reselling website today!

FAQ

Create your online store in minutes!

Create your online store in minutes!

Develop and launch your store with 10Web AI Ecommerce Website Builder.

Generate Your Store