2021 Guide for How to Make Money Reselling

This post may contain affiliate links and I may receive a small commission when you click on those links. You can read my full disclaimer here.

This post may contain affiliate links and I may receive a small commission when you click on those links. You can read my full disclaimer here.

Starting a business from scratch can be a daunting task. You have to find employees, sales, design a website, and of course…make money! Starting with nothing can feel like a terrifying thing too, So we’ve written this guide to help show you how to make money reselling.

Reselling, or flipping items, means something different for everyone. Some see it as a way to maximize the value of products. That is, buy them at wholesale prices and put them up for sale for a higher price on eBay or Amazon. Others see resale as a way to earn money doing very little work.

However you view it, flipping items is a good way to make money because people are buying and selling all the time.

how to make money reselling

How to Make Money Reselling

Starting a resale business is more of an art than a science. It’s not something you can learn overnight – it takes trial and error find the right balance, like with most side hustles. But if you follow these steps you’re sure to be successful!

Step One: Choose Your Niche Market

A niche market is a specific market that the market leaders do not serve well. For example, running an accounting service for doctors. It would be a niche market that large accounting firms do not serve.

The first step is to identify a niche market for your business. This can be anything from a small city or neighborhood to an entire country or even the whole world. There is a particular traffic pattern that emerges when people look for something like this.

When they localize distribution channels, you can tackle development easier since you’re already in the right place. When there are multiple niches, making sure the market is well-established can be more challenging.

Step Two: Find Products to Resell

To make money reselling, you will need a product or service already in the market. You can resell software or hardware designed for one purpose only. This is a very low-risk strategy as you are only creating a reseller business. That is if your only goal is profit-making.

Companies that buy and resell used goods fall into this category. It’s always best to research whether a product is still in production before buying it. This way, you know that there may be extra costs beyond the buying price that you won’t be able to take advantage of when reselling it.

Reselling sneakers is especially popular. Shoes are in high demand, and sneakerheads will pay thousands of dollars for the latest pair. Just be ready for competition if you choose these sorts of items to resell.

Here are a few things to look out for when choosing a product.

  • Current marketplace trends
  • Hottest selling categories
  • Product promises to the consumer
  • Average current selling price
  • Make sure your not breaking any copyright laws
  • How profitable is your chosen niche

Step 3: Research And Contact Suppliers

Research the quality of the product you are considering purchasing. Then contact reputable suppliers and installers of high-quality products. It is a good idea to send a brief inquiry to several suppliers before making a purchase.

These companies will often take your business at face value. And be more willing to upgrade or provide more services in exchange for a higher order. Make sure you ask about quality control measures in your products. Also, make sure the state authorizes the suppliers you choose.

Step 4: Set Up Your Distribution Channels

Distribution channels are the backbone of digital distribution. Find out which are available to you and target them with any opportunities you have. Your distribution channels are the channels through which you will sell your product or service to your audience.

You can have multiple channels. It’s usually best to focus on a few because they’re easier to test and understand. Find out what the main weaknesses are of each channel and find ways to counter them.

Distribution channels can fall into two categories. The first is physical distribution and the other online distribution. The type of product you choose has a bearing on the best distribution channel for you. Here are the most popular ones.

A. Physical Distribution

  • Sell at yard sales
  • Consignment stores
  • Flea Markets
  • Thrift Stores
  • Fundraising Events
  • Arts and Craft Shows

B. Online Distribution

Step 5: Promote Your Business

Social media has tremendous power to promote your business. It allows people to see what products you have available for sale and what other people are buying. It also lets others know about new trends and ways that you are improving your business.

Step 6: Keep an Eye on Your Finances

Keep an eye on your finances. Because when your income and expenses are coming in different ways, it can be hard to keep track. Make sure you’re aware of the different types of shipping options available for your products, as well as how those shipping costs may change over time. Sometimes, it’s easy to overlook an occasional $5 or $10 difference when it comes to bills — but it adds up over time.

A reseller business usually requires little capital investment. The main things to consider are:

  • How much inventory do you need?
  • Are you willing to purchase the items and fulfill orders yourself, or will you outsource?
  • You don’t need to be an expert, but you should at least be good with personal finance
  • How much inventory management overhead will you need to save on buying inventory in the future?
  • How much shelf space do you need for your product?
  • Are there any return policies or endorsements that might affect your ability to resell the item?

This is important since reseller businesses have limited capacity or limited revenue. The aim is to increase sales while minimizing overhead costs.

learn how to make money reselling

What Products Are Best for Reselling?

Another essential facet of finding your niche is determining what products are best for reselling. Fortunately, there are dozens of items in various niches that you can dip your toes into. Let’s explore some of the most popular things you can find and flip for a reasonable profit.

Household Products

Household products are a fantastic option for reselling as there’s a massive market for them. Also, they can take little effort to revitalize to a like-new condition. If you’re interested in getting your hands on a fun project, we highly recommend these items.

  • Antiques

Antiques are fabulous for reselling because they’re fun shopping for and are also fantastic to restore. Anything from antique bedside tables to dressers can fetch you a reasonable price. You’ll be able to make even more money if you can find well-maintained antiques made from high-quality materials, like teak.

  • Appliances

If you know a bit about electronics, appliances are a great way to bring in extra cash. The number of households that throw away old appliances for new ones is more than you’d think. If you can find microwaves, toasters, coffee makers, and other small items that need few repairs, you can earn a reasonable profit.

  • Yard and Power Tools

There’s no doubt that power tools can be costly off the shelf. Fortunately, they’re also something many households get rid of in place of finding upgrades.

Try hunting at garage and estate sales to find marked-down power tools that you can resell for a profit.

  • Rugs

There’s nothing like breathing new life into a space with a high-quality rug. Many homeowners don’t realize their old rugs can be like-new if they clean them and instead throw them away.

As a reseller, you can find old rugs, get them cleaned, and resell them for hundreds, depending on the style and size.

  • Dinnerware and Utensils

Every home needs a collection of plates, cutlery, cooking utensils, and more. By finding dinnerware and utensils, you can shine them to their original brilliance and resell them to many customers. These products are some of the easiest to get your hands on and can generate a reasonable income.

Apparel and Accessories

Another massive area of focus regarding reselling is apparel and accessories. The options are endless, with smartphone apps and websites dedicated entirely to reselling old vintage clothes.

You can choose to resell these items online or in-person, although online can be far more convenient.

  • Apparel

Designer goods are bound to get you the highest profit out of any apparel, but they can be hard to source. Opting for vintage pieces such as old band t-shirts is a great way to resell clothing. Essentially, anything that’s in pristine condition has the potential to be resold.

  • Shoes

Shoes can be challenging to resell, especially pre-owned and pre-worn. However, if you’re able to find designer shoes, they can help you generate plenty of extra revenue.

Undoubtedly, dress shoes and sneakers are your two best bets as you can resell them for more than sandals and other styles.

  • Jewelry

Everyone loves accessorizing with the perfect piece of jewelry. Reselling in this category will require a little bit of experience and patience, as you’ll want to focus on real metals. If you can get your hands on authentic gold or jewelry with genuine gemstones, you can make thousands of dollars.

Electronics

The final area of interest you should consider for reselling is electronics, which come in many shapes and sizes. Let’s look at some of the more common areas of interest for this niche.

  • Video Games

Not only is it possible to resell video games but also video game consoles. With that said, you’re going to want to focus on older legacy games as they generate more profit than new releases.

This is another niche that will require plenty of research and experience to ensure you’re pricing your collection correctly.

  • Photography Equipment

There’s never a shortage of artists looking to expand their horizons into photography. Equipment such as flashes, lenses, camera bodies, lights, and green screens are always in-demand.

If you can find them in garage sales and refurbish them to a like-new condition, they can be profitable to resell.

You could also consider renting items out as an alternative to reselling photography equipment. This process would help you generate even more income over an extended period. Also, you can spend less time sourcing new products to refurbish and sell.

How to Make Money Reselling: Conclusion

It’s not for everyone, but reselling products are a great way to bring in some extra cash. If your good enough it can become a full-time business. Hopefully this post has given you an idea of just how to make money reselling.

Read about How to Make Money Flipping Sports Cards for a similar earning opportunity!

 

 

 

 

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