Reselling Business

Posted on 14th March 2023 in guides by Ryan Badger « Back to All Posts
Reselling Business

The rise of e-commerce has created an excellent opportunity for reselling businesses. Reselling involves buying products in bulk from suppliers and selling them to customers at a markup price. This business model has low startup costs and high profitability, making it an attractive option for entrepreneurs. 

In this article, we will discuss how to start a reselling business online and explore the various opportunities available for resellers.

What Exactly is a Reseller?

A reseller is an individual or a business that purchases products from a supplier and resells them to customers. The reseller does not manufacture products but buys them in bulk and sells them through various channels such as online marketplaces, social media, or their website.

What is the Process of Becoming a Reseller?

Becoming a reseller involves several steps:

1. Choose your niche

The first step in becoming a reseller is to choose your niche. A niche is a specific product category or market segment that you want to specialize in. It is essential to choose a niche that aligns with your interests, expertise, and market demand. Researching the market and identifying profitable products can help you select a niche that aligns with your business goals.

2. Find a supplier

Once you have identified your niche, the next step is to find a supplier who can provide you with the products you want to resell. There are several ways to find a supplier, such as online directories, trade shows, or referrals from other resellers. Conducting thorough research and vetting before partnering with a supplier is crucial to ensure product quality and timely delivery.

3. Set up your Business

After finding a supplier, you need to set up your business, which includes registering your company, obtaining necessary permits and licenses, and setting up your website or online store. Choosing a platform that aligns with your business goals and allows you to list products, process payments, and manage orders is crucial to ensure a smooth business operation.

There are several eCommerce platforms that allow you to set up your eCommerce store. However, not all platforms are ideal for non-tech-savvy individuals. At times, you can opt for Shoprocket. It is an online site builder tool that allows you to add shopping cart to  website HTML without requiring you to learn the coding language. Once you set up your eCommerce store using Shoprocket, you can easily sell your products online.

4. List your products

Once your business is set up, you can list your products on your website or online marketplace. Writing compelling product descriptions, taking high-quality images, and offering competitive pricing can help attract customers and differentiate your products from competitors.

5. Market your products

Marketing is critical to the success of your reselling business. You can use social media, email marketing, or paid advertising to promote your products and attract customers. Building a strong online presence, engaging with your target audience, and building trust and credibility can help increase your customer base and sales.

6. Build relationships with your customers and suppliers

Building strong relationships with your customers and suppliers is essential to the success of your business. Offer excellent customer service, listen to feedback, and maintain clear communication with your suppliers. Building long-term relationships can lead to repeat business and referrals.

Where to discover the best suppliers for your reselling company?

Finding the right supplier is essential to the success of your reselling business. Here are some ways to find the best suppliers for your business:

Online Directories

Online directories such as Alibaba, ThomasNet, or Worldwide Brands provide a list of suppliers for various product categories. These directories offer a wide range of suppliers, making it easier to find a supplier that aligns with your niche.

Trade Shows

Attending trade shows is an excellent way to meet suppliers and learn about new products in your niche. You can find trade shows through online directories or industry associations. Meeting suppliers in person can help build better relationships and negotiate better deals.


Asking other resellers in your niche for referrals to suppliers they trust and have a good working relationship with can help you find reliable suppliers quickly. Other resellers' experience can provide insights into a supplier's product quality, delivery time, and customer service.

Five Business Opportunities for Resellers

1. Dropshipping

Dropshipping is a business model where you sell products without keeping any inventory. You list products on your website or online marketplace and order them from your supplier only when a customer places an order. 

The supplier ships the product directly to the customer, and you earn a profit on the difference between the wholesale and retail price. Dropshipping has low startup costs and requires minimal investment in inventory and storage space.

2. Private Labeling

Private labeling involves buying products from a supplier and adding your label or brand name to them. This business model allows you to create a unique brand identity and differentiate yourself from other resellers. 

Private labeling requires a higher investment in product development, packaging design, and marketing, but it can offer higher profit margins.

3. Wholesale

Wholesale involves buying products in bulk from a supplier and selling them to retailers or other resellers at a markup price. 

This business model requires a higher startup cost, as you need to purchase products in large quantities, but it offers a higher profit margin. Wholesale can be a lucrative business opportunity if you have established relationships with retailers and can offer competitive pricing.

4. Retail Arbitrage

Retail arbitrage involves buying products from a retail store at a lower price and reselling them at a higher price online. This business model requires a good eye for spotting deals and a thorough understanding of the market demand. 

Retail arbitrage can be a profitable business opportunity if you can find high-demand products at a lower price than their online selling price.

5. Affiliate Marketing

Affiliate marketing involves promoting other companies’ products and earning a commission for every sale made through your unique referral link. This business model requires a strong online presence and a significant following on social media or a blog. Affiliate marketing can be a passive income stream if you have a substantial following and can promote products that align with your niche and audience.

Frequently asked questions about how to become a reseller:

Do I need any prior experience to become a reseller?

No, you don't need any prior experience to become a reseller. However, having knowledge and expertise in your niche can help you make informed decisions and provide better customer service.

How much does it cost to become a reseller?

The cost of becoming a reseller varies depending on your niche and business model. Dropshipping and affiliate marketing have low startup costs, while wholesale and private labeling requires a higher investment in product inventory and development.

Can I resell any product?

You can resell any product that has a demand in the market and can be legally sold in your region. However, it's essential to choose products that align with your niche and have significant profit margins. Conduct market research and competitor analysis to identify profitable products.

How do I find reliable suppliers?

You can find reliable suppliers through online directories, trade shows, or referrals from other resellers. Conduct thorough research and vetting before partnering with a supplier. Check the supplier's product quality, delivery time, customer service, and pricing to ensure they meet your business needs.

The Bottom Line

Starting a reselling business online can be a lucrative opportunity for those with an entrepreneurial spirit and an eye for spotting trends and bargains. However, it's important to take the time to research your market, identify your niche, and build a solid business plan before jumping in. 

By following the steps outlined in this guide, you can set yourself up for success in the world of online reselling. Remember, it takes hard work and dedication to build a successful business, but with the right approach and mindset, you can turn your reselling hobby into a profitable career.

And if you are wondering how to resell Shoprocket to offer your own branded, whitelabel ecommerce platform, get in touch with our team and we'll be happy to talk about your requirements.

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