How to Become a Reseller and Make Profit? Owning your own business is the dream of 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 0 generally requires a large 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 sell yourself, but buy them from suppliers. In addition, the price you get is usually lower than the market so you can resell and take profits.
For some people, resellers may not be something foreign. But, some may still ask, what is a reseller, how does it work, and how to become a reseller? Come on, see the following 8 tips!
What is a reseller?
A reseller is someone who buys a product from a supplier and resells the product to consumers at a higher price for 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 working system, see the following explanation:
- Resellers buy stock of goods from suppliers
- Resellers market products in their stores (at higher prices)
- Customers buy products and make payments to resellers
- The reseller packs and ships the product to the buyer.
More or less, that’s how resellers work. Because of this, 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 an offline store, you can sell them online through e-commerce, websites, or social media.
Although it sounds more difficult than drop shipping, by becoming a reseller, you can get bigger profits than dropshipping because you can set your own profit margin.
The products or goods that you buy, you can promote with brands from suppliers or your own brand. You can also add something unique such as attractive product packaging, give greeting cards, stickers, and more.
8 Simple Ways to Become a Reseller
If you are interested in becoming a reseller, here are 8 ways you can try. Listen!
Decide which products to sell
Of course, there are many choices of products 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 have a lot of demand, can bring appropriate profits, and products that are easy to sell. In contrast, to drop shippers who are not involved in the process of packaging and shipping goods, resellers are involved in the process. Therefore, choose products that are easy to sell, pack, and ship. You can do research online via 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 Google Trends to see trends over a certain period of time.
Do competitor research
After determining the product you want to sell, don’t forget to do competitor research. Pay attention to how they market their products, interact with their audience or buyers, the prices they charge, and more. Because there are many people who run a reseller business for the same niche or product. In addition, with competitor research, you can learn about their weaknesses and strengths. Take opportunities from weaknesses and learn from the strengths or good things done by competitors and have a positive impact on the running of the business.
Choose a trusted supplier
As a reseller, of course, you need to buy goods from trusted suppliers. Choosing a supplier or suppliers must be done carefully. You can write a list of several potential suppliers, then compare various aspects of all suppliers. For example, product quality, how to communicate with suppliers, prices offered, delivery process, minimum purchase quantity, and other benefits that you may get. Then, choose the one that is the best and offers the benefits that suit you.
Product quality is important. Choose a supplier that provides quality products so as not to get complaints from consumers. Be sure to check the supplier’s identity carefully to minimize fraud.
Determine the media to sell
There are many sales media that you can use today. It can be through a website, e-commerce, or social media. Today, many people are selling on e-commerce. Determine the media that you understand best and are in accordance with the target market. If you plan to sell on e-commerce, don’t forget to study each e-commerce first, okay. Find out what features are provided, payment methods, admin fees, and taxes that sellers have to pay.
In addition, also specify a payment method that facilitates the transaction process. Via bank transfer, e-wallet or digital wallet, COD, and other methods.
Active on social media
Utilizing social media as a promotional medium is the right choice. Share interesting content about your product in a variety of 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 or ads on social media. This ad can be set to reach a specific target market such as age, region, gender, and others.
Use quality product photos
Product photos are one of the important things that can influence buying interest and purchasing decisions. Product photos give consumers an idea of the quality of the product they will receive when they buy it. There are suppliers who provide product photos, but some do not. If you feel that the product photos provided are of poor quality, then you can take your own product photos. You don’t need to be in a special studio, in a simple studio you can use a phone too. Make sure the phone you are using has a good camera quality and is supported by good lighting as well.
Give a competitive price
Next is to install competitive and profitable prices. The main goal in business is to make a profit. But, to attract buyers, of course, you have to provide competitive prices 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 the product with margin pricing, markup pricing, bundling, manufacturing suggested retail price (MSRP), and Value-Based Pricing. The most commonly used method of determining the selling price is Markup Pricing, which is the determination of the selling price by adding directly the profit percentage from the purchase price. The formula for determining the selling price with Markup Pricing is: Selling price = Capital + (Capital + margin percentage).
Provide the best service for consumers
In addition to product quality, good service can also make consumers loyal and interested in shopping and even recommending your store to the people closest to them. Therefore, provide good customer service. Answering their questions in a friendly and courteous 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
- Shirt & pants
- Frozen food
- Household equipment
- Internet packages