How to Start a Resell Business

Most of us today are tired of being an employee and wanted to have our own business. Whether you are planning to franchise a certain brand of products or manufacture your own goods, you must need a certain amount of funds to start with. For middle class people who don’t posses such big capital to start a company, a resell business is highly suggested.

With resell business, there are many good options to start with. You might be a consignee and profit through mark-up commissions, or you can purchase products and set your own prices based on market demand.

Resell Business has many good points. It is always easy to set-up and in most cases; the hard work is done by actual manufacturers or product providers. As a reseller, you can always use the service of your suppliers.

Another great advantage of a resell business is that, a reseller usually doesn’t hold the inventory. He can purchase the product from his supplier when there is an order. Dropshipping is the best example of a good reseller business and many people involved in this kind of business became successful, especially in ebay.

Most common products to resell online are domain name and hosting, electronics, cosmetics and fragrances, books and magazines, and various software products.

How to start your own Resell Business.

  • First and foremost make a business plan, and chose products that are unique and always a market demand.
  • Choose products in line with your expertise, experience, and interests.
  • If you prefer selling it locally, make sure to register for a business permit.
  • If possible, do Dropship to avoid unnecessary inventory. In warehousing, zero inventory is the best inventory system.
  • Make sure you have a stable and reliable supplier with good quality of products and excellent customer service.
  • If you plan to have a local store, purchase only interesting products for display purposes.
  • Always ask for a discount from your supplier if you purchase in bulk.
  • Ebay is the best place to resell products of any kind so you must try to start with selling in ebay.
  • Evaluate your competitors’ performance and adjust your price.
  • Follow advertising standards to promote your products and business by having business cards, flyers, and other visual ads online or offline.
  • Depending on the market demand and the availability of your products, make sure to set mark-up profit higher than 10%. If you cannot meet this limit, source out for a cheaper supply with the same product quality.
  • Always consider sales tax if you are leaving in countries where tax policy is tight. Make sure to include sales tax in setting your own price.
  • Always have an extra stock for best seller products.

Doing the above simple step would benefit your business if you are smart and dedicated enough to run your own business in long-term plan. Many people started in ebay by reselling just a couple of items from Dropship Companies who are now the CEO of their own Resell Business. With low risk, low capital, but reasonable profit – you can have your won Resell Business easily.


  • jetmir said on April 2, 2009
    Hi there My name is jetmir and i live in Kingston Ontario and i was thinking on opening my own reselling store but i don't know how to start do i need a licence and where can i find the staff do i go to the big stores like sears and ask them any ways i hope you can help me with this and thank you very much for your time.
  • steve said on March 3, 2010
    Hi, I am planing to open a 2nd hand shop reselling with games consoles. Please advise me how to run this business and what name to choose to name the shop. Thank YOU, B.Regards, Steve
  • SANJOY BANERJEE said on November 27, 2014
  • Ester said on June 8, 2015
    Hi i'd like to buy lindt chocolate at my local store and want to resell them in nice little boxes along with little dolls i craft. can i just do that? Thanks


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