Building an online store is one of the fastest ways to earn money and everybody knows it. It can now be so easy to build a store online without having to actually manufacture a product. Reselling, yes. You purchase items in bulk and then resell them for a premium.
But this ease of turning a profit through reselling is quickly confronted by the challenge of a steadily growing number of competitors. And so you’ll need to stay above the fold by carefully planning what to sell, by adding a unique angle to the product g, by offering better price points, and by marketing your products better.
Decide What to Sell and Decide Well
The first and perhaps the most critical decision you’ll need to make when putting up an online reselling business is what product to sell. There are two major classifications of consumer products:
- Commoditized products – these are products that consumers from all sorts of markets typically buy: that a wide range of consumers need: toys, clothes, food, and other items that everybody on the planet uses, virtually without exception.
- Niche products – these are products that appeal to specific consumer subsets (such as health and wellness, travelers, gamers, pet owners, the LGBTQ community, etc.).
With commoditized products, you have a wider market for it because everybody needs it… but you’ll also have a wide field of competitors. With niche products, there might be less demand, though there will be less competition, as well. Niche products take more work as you will really need to seek out the market of consumers you are targeting, unlike with commoditized products whose market is already just there. However, the payoff might be bigger for the niche markets because of less competition.
In this part of your business planning, you will really need to weigh your options to make the decision about what to resell. One secret is to sell something that addresses a need and sell it at a price point that is affordable. Affordable to consumers AND still profitable to you.
Finding Your Items
Once you’ve made the decision about which product (or products) to resell, you need to source for it. The easier way is to buy retail and add some markup. But this means you will have less headroom for profit. The best route to take is to buy at the wholesale price so you have more leeway for profit.
Though most wholesale products sourced from overseas, usually China, are generally accepted or even expected to be rebranded by resellers, do not just assume that it is the case. It’s still wise to secure some kind of written confirmation, like a “white label agreement” that the products you are purchasing are intended for rebranding and that you are within your rights to remove their trademarks or logos from these products.
Once you have confirmation, then you have the liberty to be creative with your branding. This gives you an edge over other resellers. A unique logo or branding can significantly set you apart from the competition. Level up from the usual sticker logos that can easily be removed. Think engraving or etching, perhaps with a metal marking weld fluid. But perhaps it’s best if you leave this part to the pro machinists or steelworkers.
Selling Your Items
If you want a more secure and gradual start to your online selling business, consider going through online selling platforms. Although, if this is your first time getting into online selling, it may be best to join the eBay marketplace first.
When you’re confident enough to commit to a “full store”, you may venture into the Amazon or Shopify selling channels. These platforms will provide you with the tools that are necessary to accept payments, fulfill orders, and manage your inventory.
Eventually, you may start to think about setting up your own platform. Perhaps start with a business page on Facebook or Instagram. And then your own website. What’s critical is that you have payment, fulfillment, and inventory management systems in place before taking this next major step.
Promoting Your Business
Once your online store has been set up, you’ll need to promote awareness among your target market. Social media channels would be a good avenue to explore. Influencer marketing is also an emerging advertising strategy, especially for edgy startups
And of course, customer satisfaction is always a great way to market your products. Do not underestimate the marketing power of word of mouth. Just make sure that your customers will have only great things to say about your product and sales service.