Being a Home Based Internet Reseller

by Dave Pasch (Articlesbase)

If you like the concept of a retail store without a retail space and you have a little start up money, you may want to become a reseller. What a reseller does is purchase items in bulk, at a discounted wholesale price, then turn around sell those items at a retail cost. The difference is your profit. Some resellers use eBay as their sales outlet, others set up their own websites. But before you think of going this route there are things you need to consider.

Know the product. Many people make the mistake of learning how to purchase items at a wholesale price, and go crazy. They are so excited by the low cost, they don't always consider what they are buying, or how they are going to advertise and sell it, and may end up with a spare bedroom full of last year's fashionable toys that no one wants. The items you resell should be things you know about, are familiar with, and can write a convincing sales pitch for.

Research the markets. Before you write a big check for a bulk shipment of items, you need to be relatively confident that you can sell those items in a timely manner once they arrive. The longer they sit around, the more money you are losing on your investment. You may want to watch eBay sales for items similar to those you want to sell. Are the auctions hopping? Are people clamoring to get their hands on the item? Or are the listings ending without any bids? Also check out other websites selling the same types of items. What is their price point? Is it comparable to what you had planned on selling your items for?

Getting wholesale items. There are a number of sources where you can acquire wholesale items to begin your reselling business. One option is the same place you may be selling them on eBay. eBay has a wholesale section on the left side of their main page where you can purchase items in bulk for reduced costs. Another online source for wholesale items is a website called Liquidation. This is a website that offers boxes, pallets, and even truckloads of items to the highest bidder. A note of caution on this site though, some of the items are returns, meaning the item may not be in the best condition, so read the description carefully. If you prefer seeing the things you are going to sell in person before you buy them, you can always register to attend a gift show. You can do a Google search for companies like 'GLMshows'. These are only for trade professionals, so you will need to have a reseller Tax ID number from your state in order to complete the registration process.

Starting your own reselling store is not impossible, but to make it successful, you need to do a little up front research and know what to sell and how best to keep the items moving.