Are you looking to scale your reselling business? You’re not alone. According to Statista, the reselling industry is expected to grow by 11.2 per cent over the next five years. And while there are many ways to do it, This blog post is the perfect guide for beginners, walking you through the methods of scaling a successful reselling business. From setting up marketing to pricing strategies, and customer service to fulfilment, So whether you’re a first-time reseller or looking to scale your business, How to scale a reselling business: 6 proven ways is the perfect resource for you.
6 Proven ways to scale a reselling business
1. Ensure to keep enough inventory, especially for products in high demand
Keeping enough inventory in your reselling business is essential to ensuring that you can scale your business while maintaining customer satisfaction.
When products are in high demand, it can be challenging to keep up with orders, and if you’re unable to fulfil orders quickly, your customers may become frustrated.
This can lead to decreased customer loyalty and a decrease in sales. It’s essential to order the correct amount of product to have enough for future sales and current orders.
Therefore, It is essential to keep enough inventory of products in high demand to avoid order delays and ensure customer satisfaction.
By ordering larger product lots, your business will also typically receive a lower cost per unit, protecting your business from pricing issues and providing customers with quality products.
Keeping customer satisfaction high will also help you attract new customers and grow your reselling business.
2. Never price yourself out of your profit.
If you’re serious about scaling your reselling business, you must keep a close eye on pricing. There’s no point in trying to make a profit if you’re priced out of the market.
When you set your prices too high, you’ll lose customers and may not be able to recover your investment. But setting your prices too low may also lead to losses because you won’t be able to cover your costs.
The best way to avoid this problem is to find a pricing sweet spot. This means finding a high enough price to cover your costs but low enough that you still make a healthy profit.
There’s no one-size-fits-all answer to this question, but trial and error is an excellent way to find what works best for you. Just be sure to keep an eye on the competition — if they’re pricing their products lower than you, it might be time to adjust your pricing.
Here are four tips to help you price your items accurately:
- Set a price that is fair and reasonable. Don’t set a price that is too low, as this will lead to lower returns, and don’t set a price that is too high, as this will lead to fewer sales.
- Do comparative research across marketplace platforms to compare the pricing on similar items and determine what your item is selling for and what it has sold for.
- Consider your item’s condition and rarity. Some buyers may be willing to pay more for an item in good condition and rare.
- Use a price guide. A price guide can help you determine the correct price for an item based on its rarity and condition.
Alternatively, SellHound is a valuable tool for pricing assistance. It allows you to type in an item or search by image and see the current average asking price and average selling price.
Sellhound’s Precise Pricer tool uses real-time data from listings on Poshmark, eBay, Mercari, Tradesy, Etsy, Grailed, and others, to provide a powerful pricing suggestion.
Rather than researching each platform separately, Sellhound provides information from all resale platforms, calculating a powerful pricing suggestion.
3. Start selling on multiple marketplaces and find software that can help you streamline your operations across these platforms.
Multiple marketplaces offer resellers a more comprehensive range of products and opportunities to sell.
Some popular marketplaces include eBay, Mercari, Poshmark, Facebook Marketplace, Etsy, Depop, Grailed, Tradesy, Kidizen, and Shopify; each offers a unique audience and a fantastic opportunity to increase exposure and revenue.
To maximize your time and success on each platform, be mindful of the top sellers and the topics resonating with buyers. You can increase your sales and reach a wider audience by selling on multiple marketplaces.
While a great listing is essential, it’s only one piece of the puzzle. You also need to ensure that your listing is consistently updated and that you are managing your listing on all the different platforms.
This will ensure that you get the most visibility possible and that potential customers find you when they search for what you offer.
To sell successfully on multiple marketplaces, it is important to find software that can help you streamline your operations.
Vendoo is the perfect tool for sellers who want to cross-list everything in minutes but focus on the marketplaces where their items will sell quickly and for the best price.
Vendoo makes listing your items on dozens of marketplaces easy, and you can earn money from your items without ever leaving your computer.
4. Do more Product research.
Product research is essential for determining what products to resell and what to charge.
By understanding what your potential customers are looking for, you can create products that meet their needs and sell them at a higher price point.
Additionally, product research can help you identify which products to steer clear of. Learning as much as possible about the products you’re reselling can increase your chances of success.
As a reseller of products, it is crucial to make effective product research a part of your business.
Here are some tips to help you do just that
1. Selling price
Before you can begin product research, you must first determine the selling price. This will allow you to determine whether the item is suitable for your reseller business.
2. Product simplicity
When selecting a product to resell, it is critical to look for products that are simple to use and understand. Products that are difficult to use or understand will most likely be less popular and profitable.
3. Start with your hobbies or interests.
Starting with an area of interest is crucial when conducting product research – it will enable you to more deeply connect with the item, increasing the likelihood that you will be successful in reselling it.
4. Figure out what is currently trending
Before you start your product research, it is crucial to ascertain what is currently in demand. You can use this to decide whether the product is appropriate for your reseller business.
5. Search on Amazon
When starting your product research, it is essential to search on Amazon. It is because Amazon is the world’s largest online retailer, and many resellers frequent it.
6. Search on Alibaba
It is crucial to use Alibaba also when you are first starting your product research. This is due to Alibaba being the largest online e-commerce platform in the world.
7. Use product research software
It is also important to use product research software when starting your product research. This is because software can help you quickly and easily search for products that fit your needs.
8. Product demand
Another vital factor to consider when starting your product research is product demand. This is because the more popular a product is, the more people will be looking to buy it.
9. Competition
When starting your product research, it is crucial to consider the competition. This is because the more competition there is, the harder it will be for you to sell the product.
10. Seasonality
Another critical factor to consider when starting your product research is seasonality. This is because the market for a product will change over time, depending on the season.
By understanding the different factors involved in the product market, resellers can make sound decisions that will help them be successful.
5. Maintain superb Delivery service
It’s no secret that quality delivery is essential to scaling a reselling business. After all, if your products can’t get to their customers in a timely and efficient manner, your business will suffer.
Quality delivery can be challenging, but it’s essential to success. Poorly packaged or delivered products can lead to dissatisfied customers and lost sales. But how do you ensure that your products are delivered in a quality manner? And what can you do to speed up the process?
Here are some tips to help you maintain an excellent delivery service:
1. Plan your deliveries carefully. Make sure you know the best route, and the time it will take to get to your customer. This will help you avoid any potential delays.
2. Choose suitable shipping carriers. Choose the carrier that best suits your products and your customer’s needs. Make sure you choose a carrier that has a good reputation and is reliable.
3. Follow the delivery schedule. Make sure you follow the delivery schedule you set for yourself. Your customer may get angry and cancel the order if you don’t.
4. Keep track of your packages. Keep track of your packages so you know when they’ve been delivered and when they should be delivered. This will help you avoid any additional delays.
Regardless of your approach, ensuring your products reach your customers in a timely and efficient manner is essential to scaling your reselling business.
6. Be organized.
A chaotic reselling business is doomed to fail. If you’re not careful, you’ll quickly lose track of your inventory and sales figures, making it difficult to make informed decisions about your business.
Keeping track of these crucial numbers is essential to scale your reselling business effectively. One way to help keep your reselling business organized is using an inventory management system (IMS).
This software can help you keep track of your inventory and sales figures, as well as track your expenses.
Additionally, IMS can help you plan your stock, which can help you make smarter decisions about your inventory.
If you’re looking to scale your reselling business, using an IMS is a great way to get started. Keep track of your inventory and sales figures to make intelligent decisions about your business.
Most tools have a free trial, so it’s always worth checking them out.
I love Vendoo – it offers the fastest cross-listing, superior inventory management, bookkeeping, and the ability to bulk delist and relist for hundreds of brand new listings daily.
Investing in tools can be a wise investment, so don’t be afraid to try it – you might be surprised at how much you can gain in the long run.
FAQs
Is a reselling business profitable?
Yes, a reselling business can be profitable if done correctly. The key to profitability is to find products that resellers can sell quickly and at a high profit. Additionally, a reselling business requires a lot of dedication and time, so it is not for everyone.
What is a good profit when reselling?
The answer to this question depends on your specific business and reselling strategy. Generally, a good profit margin when reselling is between 40%-60%. This means you should make at least $40 per item sold if the cost is $100, but ideally, you would be making a bit more.
Can you make a living out of reselling?
There is much speculation about whether reselling can be a viable means of income. Some say it’s easy and you can make money, while others warn that it’s a shaky business and you could quickly lose everything you’ve invested. It depends on various factors, including the product you’re reselling, your sales skills, and your ability to find and fill orders. If you have the drive and determination to make a go of reselling, there is no doubt that it can be a very lucrative business. However, it’s essential to be aware of the risks and be prepared to take them on if things don’t go as planned.
To wrap Up
In conclusion, there comes a point in any business’ life when it reaches a scaling stage. This means that the business is growing faster than its resources can keep up, and it needs to make some tough decisions about how to grow. And as someone who has scaled a reselling business, I can tell you that it is not an easy task. It takes much hard work, dedication, and a lot of trial and error to get to the level of success you desire. So if you’re looking to scale your reselling business, I highly recommend following the methods outlined in this article. Not only will they help you achieve success, but they’ll also teach you how to manage your business effectively. So go ahead, try them, and I promise you won’t regret them.
