Owning your own business is a dream for many people. Are you one of them? However, one of the obstacles or problems when starting a business is limited capital. Starting a business from scratch generally requires a considerable amount of capital. But, you can start a business by becoming a reseller. This is a business that many people are interested in because you don’t need to produce goods to be sold yourself, but buy them from suppliers. In addition, the price you get is usually lower than the market so you can resell it and take a profit.
For some people, resellers may not be something unfamiliar. But, some may still ask, what is a reseller, how does it work and how to become a reseller? Come on, check out the following 8 tips!
What is a reseller?
A reseller is someone who buys products from suppliers and resells them to consumers at a higher price to make a profit. As mentioned above, resellers do not produce goods that are sold themselves, but buy and stock goods from suppliers. Because the number of products purchased is large, usually the supplier will provide a lower price than the market price.
To better understand the reseller work system, see the following explanation:
- Resellers buy stock of goods from suppliers
- The reseller markets the product in his or her store (at a higher price)
- Customers buy products and make payments to resellers
- Resellers package and ship products to buyers.
More or less, that’s how resellers work. Therefore, resellers are also often called second-hand sellers.
A reseller must also master how to manage product inventory. However, you can sell products without having to open a store offline, you can sell them online through e-commerce, websites, or social media.
Although it sounds more difficult than dropshipping, by becoming a reseller, you can get greater profits than dropshipping because you can set your own profit margins.
The product or item you buy, you can promote with the brand of your own supplier or brand. You can also add something unique such as attractive product packaging, providing greeting cards, stickers, and more.
How to become a reseller
If you are interested in becoming a reseller, here are 8 ways you can try. Check it out!
1. Determine the products to sell
There are certainly many product choices that you can sell. For this reason, resellers must choose products carefully so that business and sales can run smoothly. To determine it, you need to do research related to products that are in high demand, can bring appropriate profits, and products that are easy to sell. Unlike dropshippers who are not involved in the packaging and shipping process, resellers are involved in the process. Therefore, choose products that are easy to sell, package, and ship. You can do your research online through the internet and gather as much information as possible.
You can also do keyword research using tools like Semrush or Ubersuggest, see trends through social media, and use the help of Google Trends to see trends over a certain period of time.
2. Do competitor research
After determining the product you want to sell, don’t forget to do competitor research. Pay attention to how they market the product, interact with the audience or buyers, the prices they provide, and more. Because, people who run a reseller business certainly have a lot for one niche or the same product. In addition, by researching competitors, you can learn about their weaknesses and strengths. Take opportunities from weaknesses and learn from strengths or good things that competitors do and have a positive impact on the running of the business.
3. Choose a trusted supplier
As a reseller, of course you need to buy goods from trusted suppliers. Choosing a supplier or suppliers should be done carefully. You can write down a list of potential suppliers, then compare different aspects of all suppliers. For example, product quality, how to communicate with suppliers, prices offered, delivery process, minimum number of purchases, and other benefits that you may get. Then, choose the best one and offer the right benefits according to you.
Product quality is important. Choose suppliers who provide quality products so as not to get complaints from consumers. Make sure to check the identity of the supplier carefully to minimize the occurrence of fraud.
4. Determine the medium to sell
There are many sales media that you can use today. It can be through websites, e-commerce, or social media. Currently, many people are selling in e-commerce. The choices are also diverse, there are Shopee, Blibli, Lazada, Tokopedia, and others. Determine the media that you understand best and is in accordance with the target market. If you plan to sell in e-commerce, don’t forget to learn about each e-commerce first. Know the features provided, payment methods, admin fees, and taxes that sellers must pay.
In addition, also determine a payment method that facilitates the transaction process. Via bank transfer, e-wallet, partner agent, and pay on site
5. Be active on social media
Utilizing social media as a promotional medium is the right choice. Share interesting content about your product in various content according to the media you use.
For example, if you sell clothes, then you can upload product photos on Instagram or make video reels on Instagram and TikTok. That way, more people will know about the brand and products you sell.
To reach more people, you can also place ads on social media. These ads can be set to reach specific target markets such as age, region, gender, and others.
6. Use quality product photos
Product photos are one of the important things that can affect buying interest and purchase decisions. Product photos give consumers an idea of the quality of the product they will receive when they buy it. Some suppliers provide product photos, but some do not. If you feel that the product photos provided are of poor quality, then you can do your own product photos. There is no need to be in a special studio, in a simple studio using a cellphone is also possible. Make sure the cellphone you use has good camera quality and is supported by good lighting as well.
7. Provide competitive prices
Next is to set a competitive and profitable price. The main goal in business is certainly to make a profit. But, to attract buyers, of course you have to provide a competitive price in the market. When shopping, shoppers often compare the prices of similar products from one store to another.
You can determine the selling price of products with margin pricing, markup pricing, bundling, manufacturing suggested retail price (MSRP), and Value Based Pricing. The most commonly used way to determine the selling price is Markup Pricing, which is to determine the selling price by directly adding the percentage of profit from the purchase price. The formula for determining the selling price with Markup Pricing is: Selling price = Capital + (Capital + margin percentage).
8. Provide the best service for consumers
In addition to product quality, good service can also make consumers loyal and interested in shopping and even recommend your store to the people closest to them. Therefore, provide good customer service. Answer their questions in a friendly and polite manner, in addition to responding quickly is also important so that consumers can immediately get information related to the product they are looking for and immediately make a purchase.
Some reseller business ideas
Here are 10 profitable reseller business ideas that you can try:
- Cosmetics and skincare
- Shirts & pants
- Shoe
- Bag
- Frozen food
- Perfume
- Snacks
- Accessories
- Household appliances
- Credit & internet package
So, that’s how to become a successful reseller for beginners. Hope it helps!
