Businesses come in different forms, and in different categories. There is the division that manages the actual production of materials, just as there is the division that deals with the marketing of these goods, to get it to the people that have need for it.
The resale of goods is not uncommon, and it has even created ease for customers interested in purchasing items that are not immediately marketed to them. Before starting a reselling business, there are several things you need to know, and do. First on is determining your distributors as well as customers, and the mode of operation you are going to use to carry on the reselling. This would be discussed extensively below.
Starting a business is somewhat easy (really). The main work is in consistency, and it happens that with reselling businesses, gain is hadin consistency. While starting or contemplating a start for reselling goods, you would have to make a lot of decisions. Do you want to be known to sell just one thing? Say, pet meals and toys? Do you want to have just a particular brand of items available? Do you intend on having a physical store for these goods? What is the marketing plan? Are you going to have stocks down or only purchase it when an order has been placed? Decisions, decisions.
An advantage that comes with reselling items instead of simply being a distributor is that you have the freedom to sell different types of brands. Apart from the fact that some people may have a liking to a particular brand, many may be encouraged to purchase simply because of the availability of the same product, though by a different brand that is less expensive.
‘Sticking to a niche’ is preached plenty, but with a product reselling business, there is no need to limit yourself to a particular niche. If you are planning on reselling clothes for example, you can also sell jewelries. This is one of the advantages that comes with having an online store, as all the potential buyers need to do is ‘search’.
Having a business plan is non-negotiable. It gives you a clear view of your goals, as well as exposes you to what ways are best to achieve the goals. It is also while planning you determine the compensation model for the goods you would be reselling. Would it be at a buy-rate or on percentage basis? A buy-rate would mean you are buying at a wholesale price to resell at the retail price. On a percentage basis, the goods will be sold at a price fixed by the vendor, and compensation is paid to the reseller by the vendor off the percentage agreed from each unit sold.
Before entering into an agreement with vendors, if you won’t be fixing the price to sell the goods, be sure to read the terms and conditions carefully. It is also important to confirm the genuineness of what vendor you will be purchasing your items from to avoid getting scammed.