HOW TO START A RESELLING BUSINESS ON A BUDGET

July 24, 2023 9:30 am

Running your own business is an attractive endeavor. Being a reseller offers flexibility, growth opportunities, and the ability to be your own boss. However, the main obstacle that holds potential resellers back is having the money to fund their business and not knowing how to start a reselling business on a budget.

Working with a limited cash flow doesn’t have to stop your entrepreneurial dreams. Check out these tips to learn how to start a reselling business with a small budget.

Make a plan

Before you start anything, create a full business plan that outlines how you will achieve every step of the reselling process. This will give you the chance to anticipate costs well before you need to pay them which will help you start reselling on a budget.

Your plan should include:

  • What you want to sell

When deciding what kind of inventory you’d like to sell, consider sourcing items you’re familiar with. If you choose a category that you know well, you’ll already have an idea of how to market that item, what its potential value is, and how much a buyer should be willing to pay for it.

  • The condition of the inventory you want to source

Selecting the right inventory condition is important when it comes to calculating your potential return on investment (ROI). Buying returns may save you a lot of money, if you are willing to take the time to inspect the inventory and potentially repair some of the packaging and items.

  • Where to source

When deciding where to source your inventory, take into account the conditions, categories, prices, and transparency offered by the provider. Finding a trusted liquidator is essential when you start, because building a long time relationship can help you on the long term to benefit from special discounts and all the free resources a trusted liquidator can provide (client service and marketing support, delivery deals etc.)

  • Where to sell

Deciding what inventory to buy counts a lot when deciding where to sell. Some types of inventory work better when sold in a physical store – anything like furniture, lighting appliances etc., while others – like decorations, kitchen accessories etc. work better on an online platform. Each comes with different buyers, fees, and other requirements, so be sure to research and even test which one may be best for your inventory.

  • What you afford

Setting a budget helps put you in control before you start spending, but you need to include all costs. A way to save costs on the items itself is to look from the start for items within your budget. You can shop directly from our platform and make sure you stick within your budget by using the price filter. Be mindful also of the delivery cost – the more lots you buy, the cheaper the transport is (within Europe).

  • How much time you want to dedicate to your business

Taking the time to manage your new business is essential to its success. Sourcing, listing, and fulfilling items can be time-consuming!  You’ll also want to ensure good customer service so your buyers keep coming back. With these things to consider, setting aside the appropriate amount of time is key to setting realistic expectations.

  • Where to store your inventory

Storage is a very important factor – make sure you have a clean, dry space to not only store inventory, but also to take product photos and fulfill orders. This will help prevent your home from being cluttered and provide you with an accessible space to manage your business.

Research and Set a Budget

Everything begins with research. Many potential resellers are under the assumption that reselling requires a lot of money, but that is not necessarily the case. You can invest in a small lot and turn that low-cost investment into major profits. You’ll quickly find there’s a buyer for everything.

If you’re starting a reselling business on a budget, these tips can help you make your first investment a profitable one. ARLL is here to help you choose an inventory within your budget, so you can start making profit quickly. Check out all our offers here.

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