How to Scale Your Reselling Business to Six Figures
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Imagine transforming your weekend hobby of flipping thrift store finds into a thriving six-figure business. The dream of turning your passion for reselling into a lucrative career is within reach, and we're here to guide you through the process.
With online platforms like Ebay and Poshmark, it is easy to create your own ecommerce business. In this guide, we'll share tips and strategies for taking your reselling business to the next level.
Set Your Goals
Before you can scale your online resale business, it's important to define what success means to you. Do you want to make six figures in revenue or profit? Are you looking to grow your inventory or increase your average sale price? Write down your goals and refer back to them often as you make decisions for your business.
Choose a Business Model
When scaling your resale business, it's essential to choose a sustainable and scalable business model. One option is to focus on high-end or luxury items with higher profit margins. Another approach is to focus on volume sales with lower-priced items. Evaluate your strengths and resources to determine which model would work best for you.
Expand Your Product Range
One way to increase your reselling revenue is by expanding the types of products you offer. If you primarily sell clothing, consider adding accessories or home goods to your inventory. By diversifying your product range, you can attract new customers and cater to a wider audience. Don't be afraid to try new things and see what sells.
Crosslist to Other Platforms
Crosslisting your items on multiple reselling platforms is a great way to increase your reach and potential sales. While some customers may prefer one platform over another, others may use multiple platforms to find the best deals. When one platform is slow, another will be busy. Selling on multiple sites will help balance your sales. Each platform has their own target market, and this is great for those who sell in multiple categories.
By crosslisting, you can also take advantage of each platform's unique features and audience demographics. List Perfectly helps people crosslist to different platforms in seconds!
Outsource Reselling Tasks
As your reselling business grows, you may find yourself overwhelmed with daily tasks such as sourcing, listing, and shipping. To free up your time and focus on growth strategies, consider outsourcing some of these tasks. You can hire virtual assistants or outsource specific tasks to freelance workers.
You can outsource by hiring someone virtually or in person to help, but you can also outsource by using tools like List Perfectly and My Reseller Genie.
Network and Collaborate with Other Resellers
Building relationships is crucial for any business, including reselling. Attend industry events and conferences to network and learn from experts. Collaborating with other resellers can also be beneficial, as you can share resources and insights to help each other grow. This is also a great way to learn new places to source inventory.
Optimize Your Storage Space
As your reselling business expands, you may find yourself running out of storage space. This can be a significant obstacle to scaling your business. Look for creative solutions such as renting storage units or utilizing fulfillment services to minimize the physical inventory you need to store. This will also give you more flexibility to scale without being limited by storage space.
Related post: Reseller Storage Ideas Every Seller Needs
Embrace Technology
With the rise of ecommerce, technology has become a crucial tool for resellers. From inventory management software to crosslisting software, there are various technologies that can help streamline and scale your business. Take advantage of these resources to save time with the listing process and increase efficiency.
Provide Excellent Customer Service
In any business, customer satisfaction is the key to success. As you scale your reselling business, make sure to maintain excellent customer service and communication. This will build trust with your customers and encourage them to return for future purchases. Great customer service will also build customer loyalty and encourage customers to leave feedback, which is a good indicator to potential customers that they will have a great experience.
Continuously Educate Yourself
The reselling market is constantly evolving, and it's essential to stay updated on industry trends and best practices. Attend conferences, read blogs, watch Youtube videos, and join online communities like reseller Facebook groups to learn from other successful resellers. By educating yourself, you can stay ahead of the competition and make informed decisions to build a successful business.
Broaden Your Sourcing Opportunities
Starting out by selling items from around your home is a low risk way to see if reselling is for you. Once you've gotten the hang of it, sourcing items from yard sales and estate sales is a lot of fun. You'll often find quality items at a great price. Sourcing at thrift stores can be profitable if the inventory is not overpriced.
Depending on your sourcing goal, you may find that you are not finding enough inventory by shopping at garage sales and thrift stores. There are only so many hours in a day. This is a great reason to expand your sourcing opportunities.
Look around on sites like Facebook Marketplace for local bulk buys. Many times companies will advertise liquidation merchandise and wholesale products but other times individuals will advertise leftover items from a retail or reselling business. Talk to local people, hand out business cards, and network. You never know what opportunities are out there for you to find.
As your reselling business grows, you may need to use more advanced sourcing techniques to find high-quality and profitable products. These can include attending trade shows, purchasing wholesale lots, or negotiating with suppliers for bulk discounts.
Don't be afraid to think outside the box when it comes to sourcing opportunities. This may mean that you have to step out of your shell a little and get to know others in your community. I promise it's worth it!
Mind Your Profit Margins
Is becoming a reseller profitable? It absolutely can be. Successful sellers always believe in buying low and selling higher. You should also be mindful of the profit margin. Your desired profit margin will depend on your business model.
Many people who sell online often start doing so as a side hustle. You may not have a lot of time and want to sell fewer items with a higher profit margin. As you scale, you may need to increase volume. Sometimes that comes with a lower profit margin, depending on what type of inventory you can find consistently in large quantities.
Track Your Resale Business Analytics
To effectively track your profit margins and make informed business decisions, it's important to have a system for analyzing your reselling data. This can include tracking sales by category, platform, or time period. You can also use external tools such as My Reseller Genie to manage inventory and track best selling categories. With this information, you can identify areas for improvement and adjust your strategies accordingly.
Remember that numbers other resellers share are often their gross sales totals. They aren't necessarily sharing their net profit. Remember, if you treat this like a small business, it will grow and become profitable. That means making smart sourcing decisions.
Find Trending Items to Resell
Don't underestimate the power of trends when it comes to reselling. Keep an eye on upcoming fashion and home decor trends, as well as popular brands and products in high demand. By staying ahead of the curve, you can source trending items that will sell quickly and at a higher price point. Social media platforms like Instagram and TikTok can be great sources for discovering popular trends.
Where else can you find trending items?
reseller YouTube channels
reselling Facebook groups
research in Ebay sold listings
Frequently asked questions:
Is reselling a profitable business?
Reselling can be a very profitable business if you treat your business like a real online business. Sourcing quality items with good profit margins and listing on a regular basis will bring consistent income with bigger profit margins than a lot of retail businesses can achieve.
How do I scale my reselling business?
Scaling a reselling business requires systematic methods in terms of buying, listing and shipment of goods. Incorporating effective techniques for efficient sourcing and consistent sales will help grow your business to six figures.
How much profit should you make reselling items?
Typical resellers net about 50% of their gross sales. This makes goal setting fairly straightforward. Most resellers set a goal to sell twice as much as the profit they hope to make.
There are a lot of variables to this calculation. It's not always that straightforward, especially if you source at retail stores. Using a software like My Reseller Genie will help you know your exact profits and set goals based on your own numbers.
Conclusion
Reselling is a lucrative business that requires hard work, dedication, and a willingness to constantly learn and adapt. By continuously educating yourself, broadening your sourcing opportunities, utilizing advanced sourcing techniques, minding your profit margins, tracking your analytics, and keeping up with trends, you can build a successful reselling business.
Remember to always treat it as a legitimate business and stay organized to achieve long-term success. So, keep learning, exploring and growing your reselling business!
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