• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Submissions
  • About Us
  • Contact Us
  • Mar 25, 2023
  • Startup
    • Creating a Plan
    • Funding a Startup
    • Franchise Center
    • Getting Your Office Ready
    • Making Your Business Official
    • Marketing Your New Business
    • Personal Readiness
  • Run & Grow
    • Customer Service
    • Human Resources
    • Innovation
    • Legal
    • Operations
    • Risk Management
  • Leadership
    • Best Practices
    • Communication
    • Green Initiatives
    • Open Culture
    • Strategic Planning
    • People Skills
  • Sales & Marketing
    • Advertising and Lead Generation
    • Marketing Innovations
    • Marketing Plans
    • Online Marketing
    • Relationships
    • Sales Activities
  • Finance
    • Budgeting and Personal Finance
    • Payments and Collections
    • Tax and Accounting
    • Pricing Strategy
    • Working with Investors
    • Working with Lenders
  • Tech
    • eCommerce
    • Hardware
    • Software
    • Security
    • Tech Reviews
    • Telecom
  • Shop

SmallBizClub

Helping You Succeed

taxbandits banner
Home / Startup / How to Start a Small Resale Business
How to Start a Small Resale Business

How to Start a Small Resale Business

1133 Views

Mar 10, 2022 By Michael Dunlop

Whether you are looking for a whole new career, or you just want to build up a side hustle that can boost your base level income, reselling could be the right way to go about it.

There are some steps to take and hurdles to navigate when starting a resale business, so let’s look at the main points you’ll need to consider if this is your ambition.

Image Source: Pexels

Put together a plan

Even a small business needs a business plan to act as the foundation on which the rest of the organization is built.

Resellers don’t need an especially in-depth plan, but writing a good one will steer you down the right route and help you to consider factors such as the market conditions, the funding you’ll need, the materials required and the costs you’ll face.

Check up on regulatory & tax obligations

Registering your resale business and applying for a license to operate in your state may or may not be necessary. Because rules differ from place to place, it’s worth getting advice from an expert at this point.

Working with an accredited accountant to get your tax affairs in order is also wise because you don’t want to fall foul of the IRS, whether accidentally or otherwise.

Choose your platforms

Whether you are couch flipping, furniture upcycling, vintage fashion reselling, or anything else, you need to use the right platforms to connect with your prospective customers.

A site like eBay is a good starting point, as it caters to every possible category of item, from electronics and cars to books, clothing, and beyond. You’ll need to consider the costs that come with using a third-party service, such as fees which can be estimated with an eBay calculator tool.

There are also more specialized platforms out there as well, such as Depop which has a focus on fashion and accessories. Then there are services like Facebook Marketplace and Craigslist, where it is possible to list items for sale free of charge, with the caveat that this can leave you open to the exploits of time-wasters.

Create a website

If you are planning to take your small resale business seriously, it is sensible to launch a website to both represent your brand and ultimately handle transactions, meaning that you don’t necessarily have to rely on separate platforms to make sales.

Of course, in the short term, you can easily integrate a business site with e-commerce functionality through the likes of eBay. Then when you are ready to go it alone, you can bring all of the hosting and fulfillment processes in-house later on.

Consider the delivery options

A big barrier to building a successful resale business is getting the last-mile delivery right. It is likely that you will need to outsource this to a separate logistics provider, even if you are choosing to handle things like the packaging in-house.

Choosing a provider can be tricky, as there are lots of options around. You could even go for an all-encompassing fulfillment setup, like the one offered by Amazon and other mainstream vendors. It might even be an option to set up a dropshipping business, which is an agile alternative to traditional reselling that has risen to prominence recently.

Whatever you do, remember that customer satisfaction and loyalty in your brand will hang in the balance when shipping occurs, so you cannot afford to get this wrong too often.

With all these steps taken, your fledgling resale business has a fighting chance of carving a niche for itself, although a healthy dose of luck wouldn’t go amiss either.

Filed Under: Startup Tagged With: Retail, Startup Strategy

Michael Dunlop

Michael Dunlop

Michael Dunlop is a business professional with a keen interest in entrepreneurship, company strategy, and testing out new marketing techniques.

Related Posts

  • popular-misconceptions-of-retailingTop 8 Financial Mistakes Retail Business Owners Must Not Make
  • popular-misconceptions-of-retailing5 of the Biggest Trends Impacting Retail Right Now
  • 3-reasons-why-a-people-counting-service-will-help-your-small-retail-businessRetail Trends You Won’t Want to Overlook in Q2

Primary Sidebar

Random

Why Market Research is Essential

Feb 9, 2016 By SmallBizClub

7 Steps for Establishing the Right Business Model

Mar 18, 2015 By Marty Zwilling

Here’s When To Consider a Same-Day Business Loan

Aug 23, 2022 By Lending Tree

What You Need to Know About Stimulus Scams

Jun 18, 2020 By 1800Accountant

Is It Time for New Equipment?

Mar 17, 2015 By Biz2Credit.com

Footer

About Us

Small Biz Club is the premier destination for small business owners and entrepreneurs. To succeed in business, you have to constantly learn about new things, evaluate what you’re doing, and look for ways to improve—that’s what we’re here to help you do.

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Copyright © 2023 by Tarkenton Institute, Inc. All Rights Reserved | Terms | Privacy