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You don’t need a ground-breaking product concept to sell items online. In fact, if you desire to become an entrepreneur, reselling business could be the one generating profits for you.
In today’s business landscape, knowing how to become a reseller pays big time in growing your business in retail.
According to Forbes, by 2040, it’s estimated that 95% of all purchases will be through eCommerce.
This blog is for beginners who want to know in-depth online reseller business ideas & more about China wholesale dropshipping service.
We help you figure out whether reselling is the right business for you and also know the best practices to re-sale online products without any hassle.
Reselling is a brilliant opportunity for budding entrepreneurs and small businesses to reach a global customer base and stand strong in the competitive market.
Find out our tips on how to become an online reseller and open up new avenues through dropshipping from China.
What is Reselling?![]()
A reseller is an individual or entity that purchases products from manufacturers, distributors, or retailers to sell them to customers.
Resellers feature multiple brands in their offerings, ranging from large retail chains to dropshipping enterprises.
A distinguishing feature of resellers, as compared to general retailers, is their focused approach to buying wholesale merchandise for resale. These resellers often specialize in a specific category of products.
For instance, instead of offering a wide array of promotional items with logo, a reseller may choose to exclusively market denim jackets from selected luxury brands.
Reselling brings unique benefits not typically available to other business types, such as:
- Buying in bulk online for resale without paying sales tax from suppliers.
- Freed from the responsibilities of product development or manufacturing.
- The opportunity to make top reselling items traditionally exclusive only to wholesalers.
However, reselling is not without its challenges.
Issues like supply constraints and minimum order stipulations from suppliers and manufacturers can be hurdles for resellers, regardless of whether they are newcomers or established in the market.
Advantages and Drawbacks of
|
|
| Advantages | Disadvantages |
| Low start-up costs compared to manufacturing or developing your own products. | Business heavily depends on suppliers. Issues like stock shortages and price changes can directly impact operations. |
| Can buy tax-free wholesale products for resale | Minimum orders can be very expensive. |
| Specialize in niche markets with the best reselling items. | Exclusivity in agreements might restrict your ability to sell items in specific locations. |
| No need for production knowledge. It demands focus only on sales, marketing, and customer needs | Handling customer inquiries and returns can be challenging as you don’t have control over manufacturing. |
| Provide items to customers that used to be exclusive to wholesalers. | Limited control over product quality. |
4 Steps To Become A Reseller
Want to become a reseller?
Getting into a reselling business is more like opening your retail store; however, there are subtle differences between an authorized reseller and a retailer.
In the next few sections, we’ll discuss how a reseller is different from a retailer, how to start online resale business and being a reseller, how you can use retailers to your best advantage.
1. Register Your Business & Get Permit
Just like any other business, registering and obtaining a permit is important here, too.
Depending on the country you are starting you are business, the federal requirements may vary.
However, most governments will require you to be licensed for tax payment and employee management.
To operate your business, you’ll need
- A standard business license
- A reseller’s permit (highly beneficial) that allows you to purchase from suppliers and manufacturers without paying taxes.
- Licenses for each state where you are selling products ( encouraging high volume sales). Check for those places to confirm their requirements.
2. Find Suppliers
Wondering where to buy wholesale products for resale?
Identifying suppliers can be quite challenging when you are starting your reselling business.
It requires you to understand what kind of wholesale products for resale you prefer and the kind of customers you are selling them to.
Only then can you get a clear vision of whether —
You want a supplier that operates like a distributor providing bulk items to resell,
Or,
A drop shipping that supplies products and handles order fulfillment.
You might be a pro in the field, but getting to see how things run can be a huge plus for new as well as experienced resellers out there.
Among many options for procuring private label products, sourcing from China is highly preferred by most businesses due to diversity, affordable costs, and added benefits.
With a reliable China wholesale supplier, you can find cheap wholesale products for resale, tailored to match your needs.
There are 3 primary ways to source products for an authorized reseller:
- Buying in bulk online for resale directly from manufacturers
- Buying wholesale products for resale from wholesalers
- Buying previously owned bulk items to resell
There isn’t a thumb rule to say one is better than the other, but it is good to weigh the merits and demerits of each.
Pro Tip – Remember always to consider your profit margin and your ability to maintain consistency in stock supplies while procuring Chinese wholesale products.
Buying From Manufacturers
| Advantages | Disadvantages |
| No middleman leads to lower costs and higher profit margins. | Minimum order quantities can be a barrier for small eCommerce reseller. |
| Less risk of counterfeit or damaged goods. | They may not work with online reselling business. |
| Early access to top reselling items or latest releases. | Requires high upfront investment (a real challenge for small businesses) |
| More control over inventory | Logistics and shipping can be costly and more complex, especially for international orders. |
| Can buy tax-free reselling items |
Buying From Wholesalers
| Advantages | Disadvantages |
| They may work with brands you don’t have direct access to. | You pay more markup to buy products from wholesalers (compared to manufacturers) |
| Have lower minimum order requirements. (easier for small businesses and startups) | |
| Can buy tax-free reselling items | |
| Allow eCommerce reseller to diversify their inventory. | |
| Easier logistics, reducing the burden on resellers. |
Buying Previously-Owned Items
| Advantages | Disadvantages |
| Buying previously owned reselling items can have high-profit margins. | Inconsistent Supplies. |
| Offer unique, rare, and vintage products. | Risk of poor quality items. |
| Lower inventory price, ensuring lower overhead costs. | May not be able to buy tax-free. |
Whether you are sourcing products from manufacturers in China or buying from suppliers in your locality, you’ll need a reliable sales platform to sell your products.
There can be a variety of trendy promotional items such as corporate gourmet gift baskets, mementos & souvenirs, & tradeshow giveaways.
3. Select Your Sales Platform
Your sales channels are the ones to connect you to your target audience.
This involves selling up as an eCommerce reseller, establishing a physical storefront, utilizing third-party websites, or collaborating with dropshipping partners.
Similar to suppliers, there isn’t a definitive approach to label one better than the other.
However, one still needs to ponder on the pros and cons of each for a desired outcome. Here’s a list to find out.
35% of global B2B buyers make at least half of their purchases on a B2B marketplace.
(Capital One Shopping)
Ecommerce Store
| Merits | Demerits |
| Lower overhead costs (almost free) | Online marketplace is highly competitive. |
| 24/7 sales potential that allows you to sell even from your home. | It may require significant investment in Ads and content marketers. |
| Sell your wholesale products for resale worldwide. | Providing effective online customer service can be challenging. |
| Easily partner with dropshipping companies. |
Physical Storefronts
| Merits | Demerits |
| Excellent for branding | Increase in overhead costs (rent, utilities, insurance) |
| Offers the highest profit margins. | Limited sales due to specific locations. |
| Need for hiring employees |
Third Party Sites
| Merits | Demerits |
| Access to the large user base. | Fees are charged by the site on each sale. |
| High trust level among buyers. | You are completely dependent on the policies of these sites. |
| Often free to begin selling | |
| Resellers get access to discounted postage and shipment materials |
Dropshipping Partners
| Merits | Demerits |
| Eliminates the need for purchasing and handling inventory. | Higher cost per order leads to lower profit margins. |
| Lower financial risk, as you pay only pay for products after customers have purchased them. | It affects your reputation when your dropshipping partner fails to fulfill orders. |
| No need to handle the shipping of goods and manage returns. | Packaging and branding are controlled by the supplier, its hard to boost your brand. |
| It’s easy to scale a dropshipping business. You can add or change products when you want. |
4. Initiate Marketing and Start Selling
Marketing a business can be complex and costly at times compared to other aspects of operations.
Fortunately, more avenues of marketing are available today than ever before. But deciding which marketing channel to use and which ones to avoid is crucial before you begin your marketing efforts.
For instance, if you’re in the business of selling electronics & unique promo items, then marketing through newspaper Ads might not be the best choice.
The best channels are always the ones that your customers use heavily.
So ask yourself these questions to get a clue to start your re-selling process:
A. How Do I Discover Unique Products?
- If you are an industry enthusiast and selling custom promotional items, it would be easier to dig into the latest information and updates for better insights and decide as per your convenience.
B. What Strategies are my Competitors Employing?
- Reflect on the marketing tactics of other resellers and retailers to get a hold of the process.
C. What Can I Do To Stand Out in the Market?
- Compare different strategies and carve out a tailored way that works best for your business. You can sell under $ 1 promo items to attract more customers & stand out in the market.
As a value-added reseller, you have unique advantages over manufacturers and established retailers. At the end of the day, as a specialist, you know your products in ways that others don’t.
Try to embrace your marketing skills and leverage sales, marketing, and customer communication techniques.
- Keep an eye out for the latest trends and futuristic ideas: You can reach your target audience through blogs and social media about personalized gift ideas, showing what you sell is important to them.
- Highlight the uniqueness and exclusivity of your product: Whether these are rare vintage or a newly launched products such as trendy New Year gifts, strongly emphasize the reasons that set you apart from others in the business.
Lastly, always be mindful of your profit margins. These determine your business’s success and failure.
When calculating your margins, make sure you include all your expenses, including –
- The cost of the products
- Shipping Expenses
- Packaging Costs
- Overhead Expenditures
- Employee Salaries
Using profit margins as a gauge to determine your business health is a solid strategy to make rewarding business decisions.
76% of global consumers prefer to shop with retailers that source materials in ethical ways & promote eco-friendly products.
(All Business)
Where To Find Resale Suppliers
Are you ready to find suppliers for procuring and reselling items for profit?
Here are some effective strategies to kickstart your search.
- Seek Referrals: For buying wholesale products for resale, reach out to your industry professionals to seek their opinion on who they recommend and who they do not. After all, people who are in your industry will know best what’s going on about the latest happenings.
- Explore Online Sourcing Platforms & Applications: The internet simplifies the process of finding suppliers. There are many websites and apps, dedicated to connecting resellers with suppliers and manufacturers.
- Use Dropshipping Services: Dropshipping services can solve a lot of problems that resellers might struggle with on their own. These services are equipped with the necessary warehouse space, industry knowledge, and personnel to manage inventory and ship them to customers accurately.
Here are a few dropshipping services that work best with resellers: Alibaba and PapaChina.
6 Reselling Business Ideas
Want to become a value added reseller but aren’t sure what products to sell?
We’ve compiled a list of the best reselling items that are booming in reselling business now. If any of these catch your eye, delve further to discover the niche that resonates with your business.
- Clothing & Shoes
- Pet Food & Toys
- Cosmetic & Beauty Supplies
- Car Accessories
- Electronics
- Dropshipping
1. Clothing & Shoes
Clothing and shoes are among the most popular reselling items online that stand out in the market today.
These items include seasonal outfits, accessories as well as unique summer promotional giveaways.
It is forecasted that by 2023, apparel and accessories will be the fastest-growing category in eCommerce sales among retailers, with an expected increase of 18.9%.
- Sports Clothing Items (Jerseys & Caps)
- High-quality Denim Products
- Vintage Apparel
- Exclusive Sneaker Collection
2. Pet Food, Products & Toys
Pet owners are known for their willingness to invest in the well-being of their pets.
The pet accessories market is forecasted to grow at a CAGR of 6.2% between 2022 and 2027, reaching an estimated value of $13.24 billion.
Want to set your business apart in the Pet industry?
Check out these options —
- Natural Pet Foods & Healthy Treat
- Customized Pet Toys
- Stores exclusive to specific pets (cats, dogs, fish, etc)
3. Cosmetics & Beauty Supplies
If your aim is to assist individuals in enhancing their looks and self-confidence, the cosmetics and beauty supplies sector is a promising venture.
The total revenues from the global cosmetics market are set to hit $108.4 billion in 2024. This represents a 4.43% year-over-year increase.
Some of the innovative ways of getting these beauty items to your customers include —
- Offering subscription boxes tailored for both men and women.
- Offering cosmetic & beauty products as holiday giveaway ideas.
- Specializing in a single need, like a store that sells age-defying products.
4. Car Accessories
Getting into an online resale business for car accessories can be very profitable, as people love cars nowadays.
Since their love for cars is growing day by day, their need for car accessories is also high.
Do your research to find out what your customers prefer sourcing from leading resellers to ensure a safe start.
You can think about these options —
- Comfort Car Accessories: Seat covers, steering wheel covers, car seat back hooks, durable floor mats, sunshades
- Practical Car Accessories: In-car trash bins, Cupholders
- Car Audio Accessories: Radio receiver tuner with FM transmitter, and car Bluetooth speakerphone
5. Electronic Items
The electronics market is booming all over the world, and people are highly inclined to spend on various electronic products.
As a value added reseller, you can grab this opportunity to secure a unique place in the market.
Whether you decide to sell a wide range of electronic items or specialize in a specific product, the possibilities are endless.
You can also go for sustainable promotional products such as solar chargers, eco-friendly batteries etc.
Some of the popular electronics for resale include
- Digital Cameras
- Audio Devices
- Video Gaming Consoles
6. Dropshipping
Dropshipping allows you to select from a variety of product lines & giveaway ideas like tradeshow giveaways, event-based souvenirs, Christmas giveaways, etc. These items are then shipped and fulfilled by a separate company.
Often, the dropshipping provider might also be the product supplier or manufacturer, making this a straightforward approach to begin a reselling business.
The dropshipping business is flexible, and this allows the resellers to tailor their product varieties, ranging as broadly or narrowly as they prefer.
Pro Tip: You can also opt for virtual giveaway ideas to address a larger customer base.
The global B2B e-commerce market size was valued at USD 7,907.07 billion in 2022 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 20.2% from 2023 to 2030.
(Grand View Research)
3 Tips For Success For an Online Reseller
Just like any other business, reselling is about offering something that your customers find useful, as well as allowing you to maintain a fair profit margin for yourself.
If you are wondering how to become a reseller online, these are some of the useful tips that specifically focus on helping you understand the market & become a successful reseller.
Tip 1# Make Your Products Presentable
The first thing your customer will come across is your website. Make sure it successfully grabs the attention of your customers. There can be a million ways to make your product a hit, but where do you start is the question.
- High-Quality Professional Images: Make sure you have high-quality original photos of your products that you display.If the suppliers and investors are unable to provide you with such photos, then it is in your best interest to spend time and money to make them more creative and appealing.These photos play a crucial role not only in your website but also in marketing your business.
- Effective Website & Marketing Designs: No matter which industry products you are selling, customers always gravitate towards well-designed and functional websites.Prefer choosing from popular eCommerce platforms that will help you create a site within minutes. Similarly, the marketing elements like logo & tagline should also reflect professionalism and brand consistency.If designing isn’t your forte, consider hiring a professional web designer to deliver an appealing website.
- Branded Packaging: The packaging experience can significantly impact customer perception.With customized packaging, you can pay attention to small details & make your customers feel special while unboxing.Consider investing in bulk purchases of custom-designed packaging to reinforce your brand identity and make your customers feel valued.
Tip 2# Ship Your Products Fast
Customers always prefer businesses that ship their orders fast. The efficiency of your shipping process is a direct way to add your brand’s name to your customer’s favorites.
Statistics show that 35% of customers cancel orders due to prolonged delivery periods.
This is a serious crunch, but there are always ways to save yourself from the situation.
- Go For Dropshipping Services: A dropshipping service can benefit you the most, including generating receipts, shipping, and returns of products.If you lack the storage space or budget constraints to have an in-house shipping team, dropshipping services can make your journey
- Have A Dedicated Shipping Team: Having an in-house shipping team is the best way to maintain a high standard and fulfill the expectations of your customers.However, a dedicated shipping team does have its own drawbacks, It means paying your shippers directly and also having sufficient space for storage and packaging orders.
Tip 3# Consider Your Profit Margins Every Time
As a reseller, maintaining your profit margin is crucial, perhaps more than any other kind of retailer.
Market dynamics can change rapidly, necessitating adjustments to stock levels without overstocking unpopular items.
Here are strategies to enhance margins:
- Source from alternative suppliers offering lower prices, possibly overseas, to reduce costs.
- Adapt your product range according to sales performance; increase the stock of bestsellers for better pricing and discontinue slow-moving items.
- Evaluate your shipping strategy. Consider different dropshipping services or managing shipping in-house to cut costs.
The Takeaway:
Now that you have an idea of what is a value added reseller and how reselling works, it is time for you to set up your own eCommerce store and start selling products.
PapaChina, being a trusted China wholesale supplier, is ideal for kickstarting your business and adding momentum to your business.
You can reach out to the team to set yourself up with the right ecommerce tools and reputed suppliers and manufacturers.
So, get insights from experts and re-evaluate your priorities to sell products successfully and make profits.
