In the world of ecommerce, starting a business doesn’t always require a groundbreaking product idea or the need to manufacture your own goods. One lucrative business model that allows entrepreneurs to quickly launch an online store is the resale business model. By becoming a reseller, you can purchase products from manufacturers, liquidators, or other retailers and sell them to your own customers. This article will delve into what it means to be a reseller, how to become one, and provide some reseller business ideas to inspire your entrepreneurial journey.
What is a reseller?
A reseller is a business that buys products from various sources and sells them to customers. By obtaining a reseller business permit, resellers can purchase items free of sales tax, including wholesale products, retail items, and components for manufacturing. This business model not only makes it easier for consumers to find and purchase products but also allows resellers to provide value-added services such as branded customer experiences, in-depth product descriptions, and customer support.
How to become a reseller
- Register your business: Obtain a business license and research state laws and regulations.
- Gather your application materials: Prepare all necessary documentation for your reseller business.
- Get a resale permit: File for a resale permit in each state where you buy and sell goods to avoid paying sales tax on purchased items.
Sales tax laws vary by state, so it’s essential to understand your specific requirements and collect sales tax from customers while sending it to the state. By obtaining a resale permit, you can operate your reseller business legally and efficiently across multiple states.
How to find suppliers for your resale business
To find suppliers for your resale business, identify the types of products you want to sell and the target customers you want to reach. You can choose to work with distributors for wholesale products or dropshippers for order fulfillment. Utilize online directories, Google searches, or dropshipping websites like Worldwide Brands, SaleHoo, Doba, and AliExpress to find products for resale.
Five reseller business ideas
- Dropshipping business: Offer a wide range of products without stocking inventory by partnering with suppliers who handle product fulfillment.
- Sneaker business: Resell a variety of shoes, from athletic footwear to trendy sneakers, catering to a diverse market.
- Vintage boutique: Sell vintage clothing, antique furniture, or unique items sourced from garage sales and thrift stores.
- Consignment shop: Sell upscale or luxury used goods, providing customers with high-quality products at affordable prices.
- Subscription box: Curate themed boxes of goods for a subscription-based business model, offering customers a unique and personalized experience.
Start your reselling business today
With the low-risk nature of the reseller business model, aspiring entrepreneurs can start their ecommerce journey without the need for extensive investments in product development or inventory. By understanding your audience, sourcing quality products, and providing excellent customer service, a reseller business can be profitable and rewarding. So, take the first step towards becoming a reseller and embark on your entrepreneurial venture today.
