How to get started with product resale

Find out how this business model works and which are the best products to invest in. The dream of starting a business, the desire for extra income or any other goal. Reselling products is an alternative for starting a business with little investment and finding several opportunities for growth.

In 2021, this market moved $36 billion and is expected to double in size over the next five years, reaching $77 billion, according to data from the ThredUP report. To understand more about this business model and how to start investing in it, check out the most important information that we have separated for you below. 

 

What are the types of product resale?

In the resale of products, you have the opportunity to work with the advertisement and sale of items manufactured by other brands, ensuring many advantages, starting with the fact that you do not have to invest time and money in manufacturing processes and raw materials.

In addition, you can also increase the product line you offer to customers and, consequently, have even more autonomy. 

But for that, you need to choose the type of resale suitable for your expectations. Here are the main ones: 

  • Resale by catalog: you receive a catalog with the products that the brand sells to show your customers and make sales. The advantage is that some brands don’t require initial stock and when they do, it’s something small. 
  • Consignment resale: This model makes the product manufacturer offer the goods for you to sell in their business and, in return, they receive a higher profit margin from the sales. That is, you earn less than with catalog resale, but you don’t have to make an initial investment and, if you don’t sell, you can return the merchandise. 
  • Factory direct resale: you buy the products you want to sell directly from the brand’s factory and have the advantage of paying lower prices for being in large quantities, in addition, you choose what you want to sell and have a good stock to work with.
  • Resale by dropshipping: the consumer enters your online store, makes the purchase they want, and then you forward the order to the supplier, who will ship the product to the customer’s address. With this, you don’t need to buy the items and have a stock, you just have the intermediation between the parties. 

 

What are the best products for resale?

In the reseller business model, you can choose to work with different types of products, such as clothes, bags, shoes, and accessories. Other relevant options are cosmetics, crafts, and decoration items, in addition to electronics, for example, card machines.

You can also choose to sell frozen meals or foods in general, which are also a type of product that is very commercialized on the internet with the help of delivery apps. 

 

How to choose the right product for resale?

For you to invest in the product resale market, first of all, it is important to discover the niche that you have an affinity for and, from there, observe the options available to you. A tip is to select simple and easy alternatives, which do not generate discomfort with customers, for example, long delivery times. 

Also, another point worth paying attention to is your competition. That is, research what is selling the most, what is the success rate, and different strategies that can be adopted. With this, you will be able to define the most interesting product line for your business model and invest in a sales process that is not only fast, but also safe, easy, and coherent. 

 

Invest in product resale and take advantage of more opportunities

If you want to have your own business or continue investing in your current one, it is important to analyze the resale of products as a model that provides good profits and chances of success, but it all depends on how much you want to invest and the sales process you will carry out.

Work on your strategies and bet on one of the fastest-growing business models in the country!

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