Becoming a reseller is much more achievable with today’s resources, and it’s a booming business mode as the resale industry has been estimated to have around $17.5 billion in annual revenues. Before jumping into the game, though, there are some important factors you should mull over.
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Manage your prices
Although you will factor in profit into how you do your pricing, you will have to take into account market pricing, distributor rates, and the minimum advertised price policy. These are important when settling resale prices with your distributor.
While a lot of educational texts online can help you navigate this, it may be wise to invest in a price management tool as it can cover those bases and connect you with trustworthy support and resources. Useful applications and services can even make it easier for you to track your product inventory and monitor prices competitively.
Knowing the market demand can also help you leverage prices, especially if you’re going to be solely online. Without the need for a physical shop that will have its own costs and maintenance, you can have more leeway on the amount you place on your products to make it more attractive to buyers while still earning.
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Recognize the competition
The worldwide web is a big marketplace, and a lot of diverse shops cater to different needs and wants in every demographic. Start by homing in on what audience you want to tap into and learn which competitors crop up within your realm.
Determining the best approach to your target market has a lot to do with watching trends and making use of online analytics. You are not only trying to match price points and services with other resellers out there but also attempting to expand your reach and develop some consumer loyalty. Knowing what you’re up against and determining the best approach to differentiate yourself as the seller of choice can help you in getting a foothold of the market.
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Pick the right partners
This factor covers a lot of different areas, from the manufacturers and distributors that you will deal with to the platforms you choose to sell on and the shipping and logistics companies you will make use of.
Selecting the right partners can affect the rate of your success and the smoothness of your transaction process. Whether you are engaging with consumers or setting up your supply, it’s essential to have point-persons and partners who are accommodating and cater to the specific needs of your brand.
If one part isn’t smooth, it can delay every other process. For consumer-end portions like shipments and ordering platforms, you should keep in mind how their performance will also end up reflecting on you and the consumers’ perception of your store.
No matter how big or small your scale is, these factors are vital to consider if you want to be able to sustain your reselling business long-term. With the vast number of products and industries out there, you can customize what you bring to the table.
