Online reselling refers to buying products at a lower price and then selling them on online platforms such as Amazon or eBay for a higher price. This can be a good way for individuals or even big companies to make extra income from the comfort of their own homes. One of the key benefits of online retailing is the ability to reach a global audience, as anyone can sell to anyone else regardless of location. This means you can sell to users worldwide, greatly increasing your customer base and income. Additionally, big online retailing platforms like Amazon and eBay have a large and active customer base, making finding buyers for your products easier.

Online Reselling Business Details

An online resale has another benefit of the ability to work from home. This is especially beneficial for those who already have a full-time job and want to start a business or earn extra income. With online resale, you can work according to your schedule and there are no set hours or location requirements.

To start with online resale, you will need to choose a platform. The most popular options include Amazon and eBay, but there are also other platforms like Etsy and Facebook Marketplace. Each platform has its own benefits and drawbacks, so it's important to research and choose the one that best fits your needs.

Once you have chosen a platform, you will need to find products to resell. You can buy wholesale products, or search for products at retail stores that you can resell for a profit. Thrift store products are usually sold at a lower price, which can give you more profit when you resell them. Overall, online resale provides an opportunity to work from home and earn extra income while having the flexibility to work on your own schedule.

Online Reselling Business Idea
Online Reselling 

How to become a reseller

Register your business and obtain a business license where your business operates or is registered. For states where your business is not registered, you will need foreign qualifications. Study the state laws and regulations. Some states allow you to use an out-of-state dealer's license to avoid paying sales tax on resold items, but some do not recognize out-of-state licenses. Before making interstate purchases, whether face-to-face or online, research the state laws. Gather your application materials. Once you know the requirements for registration and submitting your application, prepare all necessary documents for your dealership business. Obtain a reseller's license. Apply for a dealer's license in each state where you buy and sell goods. You may also need to pay associated fees. Sales tax laws vary by state, and each state has its own sales tax rate. In some states, local sD.C. collects statewide sales taxes, whereas 38 states impose local sales taxes. To understand your specific obligations, it is advisable to consult with your local authorities.

In the U.S., businesses with a dealer's license are not required to pay sales tax on merchandise purchased for resale. However, dealers are required to collect sales tax from their customers and remit it to the state.

Just like a business license, you can obtain a reseller's license regardless of where your resale business operates. So, if you are registered and established in Florida but have an online store, shipping location, or factory in Delaware, you will need a Delaware dealer's license. If you buy and sell goods in multiple states, each state will require a valid license.

Find suppliers for your reselling business

The best place to find suppliers for your reselling business is to first determine the type of product you want to sell and the type of customer you want to sell it to. Then, you need to determine if you want to find a supplier that operates like a distributor, providing you with wholesale products, or like a drop shipper, providing the products and handling order fulfillment.

To search for reselling business suppliers, you can browse online directories, conduct a Google search, or seek recommendations from your network. Here is a list of product-sourcing apps that are suitable for Shopify merchants. Each serves as a directory that can easily find products to sell online. You can access various categories of various products such as electronics, toys, and cosmetics.

You can also engage in reselling business by partnering with well-known direct selling websites like Worldwide Brands, SaleHoo, Doba, and AliExpress (see our complete guide to Global Quick Selling). Browse their websites to understand which products can be resold.

Ideas to help you start a reselling business

Reselling opens up many new business opportunities because you don't have to invest in product development and manufacturing. These qualities also make reselling an excellent home-based business or side hustle that you can eventually turn into a full-time job.

Here are ideas to help you start a reselling business

Dropshipping Business 

You can venture into direct selling, which enables you to offer a wide range of products without having to hold any inventory. In the direct selling model, all you have to do is market and sell the products. Your dropshipping supplier takes care of everything related to the product, from product development to storage and tracking, and even order fulfillment.

Dropshipping is a low-risk business model because it doesn't require an investment in inventory and eliminates the costs associated with storing inventory. Additionally, the supplier handles the fulfillment process, so you don't need employees or space to ship the goods to the customer.

Sneaker Business

Shoes provide a wide niche market for resellers – from athletic sneakers to fashion heels, to fashion athletic sneakers, and everything in between. People always need shoes, and you can keep things fresh by rolling out seasonal designs. There are ample opportunities to resell shoes and make substantial profits.

New Jersey-based Shopify merchant Packer Shoes was initially a small community custom shoe store. The company has been growing steadily since its start in 1907, largely due to its omnichannel approach. Now, in addition to reselling well-known athletic sneakers such as Adidas, Packer Shoes also offers its own designs.

Final Words

Online reselling businesses may have some possible drawbacks:

  •  There can be high market competition, making it difficult for sellers to stand out.
  • Shipping and handling costs can be high, especially if you are reselling bulky or heavy items.
  • You may face issues with returns and exchanges, which can be time-consuming and costly.
  • You may not have control over access or standards of items you are reselling.
  •  There is a risk of fraud when conducting online sales, such as when buyers claim they have not received items or that an item is different from what was described.
  •  You must be aware of legal requirements for online sales, such as tax and consumer protection laws.
  • Timely delivery is important in the online resale business.
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