Most wholesale buyers use a variety of resources to resell their goods. Car boot sales, market stalls and events are all places wholesale buyers can go and resell their items. But the most popular resource for wholesale buyers looking to make a return on investment quickly is online.
Most resellers head online to resell products as it’s the most popular place with consumers. Consumers often search online for cheaper items than they can find on the high street so if you’re trying to resell designer goods it’s especially important to concentrate online.
But with so much competition online and so many ways to publicise your items online too, it can get a tad confusing. Here are some tips on how to build your reselling business online and start increasing your profits:
Do Your Research
Before you start reselling online you need to do some research to find out what your competitors are doing and what products are reselling well. Head online to popular sites like eBay and Amazon, try sites like Gumtree and search for well-known competitors to find out what type of products are being advertised and what type of products are selling well. Researching this will help you to decide what products to focus on and it will also help you to decide initial product pricing.
Find Your Wholesalers
Next you need to start sourcing wholesale suppliers (if you haven’t secured stock already). Finding wholesalers can sometimes be tricky. The web is full of wholesale supplier information however some information can be unreliable, some wholesale suppliers advertise products they don’t have and others can have poor reputations. Use something like a wholesale directory to help you search for reliable and trusted wholesale suppliers and use the web to search for supplier reviews. If you have any contacts in the industry it could be worth asking them for their opinion on suppliers.
The success of an online reselling business will often hinge on the initial product purchase. If you buy a product from a wholesale supplier at a high trade price then your opportunity to resell it with a huge profit margin is seriously reduced. If you can find a wholesaler offering large discounts off the RRP you should be able to make a healthy return on investment, even if you only resell a few items. The best way to secure deals is to either buy in bulk or a wholesale pallet or to buy end of season or clearance stock. Wholesale pallets usually offer great deals. Wholesale pallets refers to a wholesale supplier offering a bundle of goods in a particular area for a very cheap one off price. But if you are interested in buying pallets it’s worth noting that most are sold without an option to look at the products. Wholesale suppliers often include items from a particular market i.e. clothing in a pallet – from end of season stock to returns. You don’t normally have an opportunity to check over the condition of the goods or to choose the make or model of goods you are buying, but that’s why pallets are so cheap. If you are willing to take the risk some pallets can offer goods at well below their RRP and you can usually resale for a good profit.
Next you need to consider whether you want to offer dropshipping. Dropshipping enables you to advertise stock without actually owning it. Using a dropshipping company you can advertise products and if a customer purchases the goods, the sale is made and the product is shipped directly to the customer from the dropshipping company. A lot of big retailers use this service, like DFS, and many companies that offer catalogue services too. It’s worth doing if you don’t have much capital to invest in stock or don’t have much storage space.
Once you have found your products, found your wholesale suppliers and are ready to list online you need to head to popular sites to resell your items. You should use sites like eBay and Amazon as these are the sites that have the most consumers visiting them. These sites will have a step-by-step guide on how to create ads but usually you include photos of your item, an advert title, a product description, delivery description and contact information. It’s crucial you include photos on your advert as many consumers won’t even look at an ad without them; including photos can instill trust in your advert as most consumers want to see exactly what they are purchasing. You should also try to use keywords in your product description and title to attract visitors. If you include key words, like the product name, make or model, then your advert is more likely to come up in product searches. Once your advert is listed you can manage your ad, talk to customers and hopefully watch the sales come in!
If you have a lot of products to resell or want to consider making this a full time business then you could consider creating your own eCommerce website. You can still advertise your products elsewhere but having your own eCommerce website can help with your sales.
Monitor Your Performance
Online is always changing. Websites change, SEO changes and customer behaviour changes too so once you are online it’s important to monitor your wholesale buying business. Regularly check your adverts to ensure you are still coming up in searches, check your site or products by searching for them on Google, consider placing paid ads with search engines, consider your writing style and whether it needs editing and stay on top of social media trends. Staying up to date with the industry will help you to grow your reselling business and grow your customer base.