ResellingHQ

Reselling Business Guide

Getting Started

Running a Reselling Business for eBay

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Running a reselling business for eBay can seem like a great little money spinner, but it takes some planning and care to make sure that you don’t end up falling foul of eBay’s terms and conditions or sink money into things that will not sell.

One thing that a lot of people don’t realize is that while eBay is quite generous with personal accounts, you need a business account if you’re buying items with the intent of reselling. High volume accounts will get picked up on and potentially suspended.

How to Make a Successful Reselling Business for eBay

If you’re planning on reselling things, then you first of all need to choose a niche. Trying to sell things in too many different categories is setting yourself up for failure. Ideally, you should pick a niche that you know well, and stick to it. Choose something where you know enough to describe the products well, and you have a good idea of how much people are willing to pay for the item.

Things like comic books, clothes, jewelry or records can be good choices, but there are plenty of other options. The important thing is that you know the market well.

Know Your Costs

One of the main reasons that reselling businesses fail is that the seller doesn’t understand all of the ‘hidden costs’ of selling goods online.

You will need to pay for the packaging and the postage of the item, and this can sometimes be more than you expect. You can greatly reduce packaging costs by buying in bulk, which is a wise move if you are serious about selling a lot of items, but postage is always going to be hanging over your head.

There are also eBay listing fees and PayPal fees for receiving payments to take into account. Beware of e-checks (which a buyer can cancel before the money leaves their account), and also of charge backs.

Make sure that you have enough ‘buffer’ to cover the occasional charge back, and don’t ship items to a buyer before an e-check has cleared. Inform the buyer of the issue and explain to them how they can check the progress of the payment, so they don’t leave negative feedback about slow shipping.

Research the usual costs, and make sure that you build those into the prices when you list items. Make sure that there is enough profit in the items that you sell to allow you to buy new items to sell, and to make it worth your time running the business.

Be Patient

It will take time to grow your reselling business and to figure out what items are worth your time. Start small by perhaps selling items that you already own while you get a feel for the market.

This will help you to understand what buyers are interested in and what products they usually search for, so that you can enjoy good results and the best possible profits in the future. If you are willing to accept the odd stumbling block, you can succeed.

How To Become An eBay Reseller

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If you want to make a living on eBay, you should become an eBay reseller. Resellers buy products wholesale or used and sell them at a profit via eBay. Many people make a lot of sales and profits off eBay sales. If you want to mimic the success of profitable resellers on eBay, you should follow this guide.

 

The first step is to decide if you want to open a used reseller store or a bulk reseller store. While used resellers will source their goods from garage sales and flea markets, bulk resellers opt for bulk deals from sites such as policeauctions.com or Liquidation.com.

Bulk resellers should set up accounts with dropshipping companies to process orders and ship the product to the customer. The next step is to set up an auction account at eBay. Once you have opened a basic account, you should go to the auction control panel and choose “Setup My Store” to set up an auction reseller store.

You can brand the auction reseller store with your own logo, color scheme, inventory amounts, and set the prices as well as update the products when you run low on inventory.

The next step is to determine if you want to offer specialized products or a combination of products. Focusing on one specific product may help you to build your brand name. You can focus on offering one specific product and a variety of related products.

The next step is to obtain the products you want to sell. If you have chosen a used reseller store, you should look for garage sales in the area. Craigslist will offer many free items in your area. Wholesale resellers should watch wholesale websites like CWR Wholesale Distribution. They should purchase products from these sites when they become available.

There are many important things to consider when setting up your store. Don’t list your items with pages of text since people have short attention spans and they will find it difficult to read all the text. Be concise and use bullet points and short paragraphs to highlight features. Make sure you upload quality photos of your products and determine the right price for the listed products.

You should have enough startup capital when becoming an eBay reseller. Buying a few items at a garage sale may not cost that much. But if you have to buy in bulk, you should be prepared to spend hundreds of dollars for one purchase. The more money you have, the more you can take advantage of the good deals. Don’t forget to vary your product purchases according to the season.

Open a PayPal account so that your customers can make secure purchases. PayPal will lend your store credibility over time. It will free so much of your time since you don’t have to worry about financial transactions. You can focus on purchasing products and selling them on eBay.

As you become more familiar with eBay, you will start developing systems which can allow you to scale the business to a point. Learning how to source your products and where you get them from will determine how much you can scale.

An eBay reseller can make a full-time living online and it requires a very small learning curve.