Becoming a reseller 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 reseller meaning, why you should become a reseller, how to be a reseller online, reselling business ideas and much more.
A reseller business allows you to resell products bought from manufacturers to customers. The reseller e-commerce business model is affordable, making it a great option for new entrepreneurs. As a reseller, you’re essentially the middleman between the manufacturer and customers. You won’t need to create your own products, but you’ll still have an extensive selection of products to choose from. Whether you want to resell clothes or resell shoes, you’ll quickly learn you can sell anything. Your reseller online shop can expand into other niches without expensive inventory fees, additional costs or high shipping costs.
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 the product 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 stock, they may feel more responsible and incentivized 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 inventory of the product to be resold. They simply act as a middleman between the manufacturer and the customer. Between a distributor vs reseller, those who sell reseller products normally don’t have such a close relationship with the manufacturer.
There are a number of reasons to become a reseller. From easily sourced 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 Sooner: 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 in as little as thirty minutes. 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 the same day.
• Carry no Inventory: The best part when you become a reseller is that you don’t have to carry inventory. You can use a reseller fulfillment app like Upinus 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.
• 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 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.
• Able to Set Your Own Margins: When you become a reseller, you’re 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.