Have you heard the buzz about reselling all over social media and Youtube? It’s become a simple way for people to make extra money on the side and have fun at the same time! Want to get started? Here is the complete guide to help you on your journey to your own reselling side hustle.
What is Reselling?
To start, you are probably wondering what is reselling. Reselling is simply buying a preexisting item at a low cost and selling it for more to make a profit. Most recently involves buying (aka “sourcing”) items and selling on online platforms or through social media.
Who Can Become a Reseller?
Anyone with access to the internet can resell items online for a profit. It can be a great business opportunity for:
- Those wanting a side hustle
- Stay-at-home moms looking for income
- Supplemental income for retirees
Running a reselling business is easy and anyone can do it if you have the drive and some extra time!
Can You Actually Make Money Through Reselling?
Absolutely yes!
I started my business small and made over $500 dollars in just under four months. Now I’ve scaled my business into a successful side hustle that has allowed me to pay off debt and be more financially secure.
Reselling works simply by the model of supply and demand. Locally there may be a low demand for an item and therefore a cheap supply, but if you open sales to buyers not in your area through online platforms the demand increases. Online shopping is only continuing to increase. Buyers are looking to purchase specific items on their devices without traveling to multiple stores. If you purchased that item at a low cost, it could mean great profits for you!
How Much Does it Cost to Start a Reselling Business?
Starting any business usually requires an investment of money. The beauty of reselling is if you don’t have money to invest right now you can start your inventory with clothing or other items you no longer use. I started out just clearing out old clothes from high school and then used the profits to purchase more from local thrift stores. I started my business entirely in the green and you can too!
Deciding What You Want to Resell
To get started with your business, first you will need to decide what you are going to resell. Pretty much anything qualifies. I would recommend first looking around your home and clearing out items you no longer want or use. These could be toys, books, clothing, or kitchen appliances. These items are “free” for you to source and are a great way to start making some cash. You also could sell items you have a passion or knowledge of such as collectables, trading cards, or movies. Really anything qualifies!
When deciding what to sell here are a few important questions to ask yourself:
- Is there a market for the item?
- Can I easy source this item?
- How much storage will I need?
- How easy is it to ship this item?
- What is the potential earning for each flip
Places to Source Inventory
Now that you’ve decide what you want to sell, you’ll need to identify where to find it. Here are some ideas to get you going:
- Garage Sales
- Auctions
- Consignment Stores
- Thrift Stores
And many more. Take a couple trips to these places and see what you find. Soon you’ll discover where to find great inventory for the lowest price possible. If you are looking to resell clothing like I do, check out my other post to find out where I source my inventory for Poshmark.
What Do You Need to Start Your Reselling Business?
Starting your business can be as simple as having a phone to take pictures, inventory to sell, and the determination to reach your goals.
First, you’ll need to decide if you are going to be selling your inventory online or just locally. My personal favorite online platforms for reselling are Poshmark and Mercari, but there are plenty more out there to choose from.
For online selling, there are some basic shipping supplies you will need to purchase:
- Poly mailers—these are very lightweight, fun packaging and can help save money on shipping costs. When bought in bulk they can cost as little as a few cents each. I find mine on Amazon but you can also look at local shipping stores.
- Shipping boxes—these will be needed for larger item. You can choose to purchase these from a local shipping store or online, or I save my old boxes from online shopping.
- Printer—or even access to a printer is fine. You will need to print the shipping labels to send your packages.
- Shipping labels—whether you invest in a label printer or label stickers, these make the shipping process so much easier! Simply print on your home printer, peel, and stick. Best part is they are waterproof and approved by all major shipping companies.
- Packing tape–useful to close boxes or waterproof shipping labels if you choose to print them on paper
USPS also offers free shipping supplies that can be ordered through their website. Poshmark requires you use these for shipping so if you are using that platform is it best to stock up on some at USPS.com.
What Platforms Should You Sell On?
There are many great places to sell your merchandise online. Some of the top names include:
- Poshmark
- Mercari
- eBay
- Depop
- Facebook Marketplace
Each site is unique and have their own pros and cons. Just try out one at a time and see which best fits you!
Check out my ultimate guide to Poshmark to see if it is the right fit for you!
Keeping Track of Inventory
This is one of the most important steps to ensuring your business is profitable. Find a way to keep track of merchandise coming in, business expenses, and sales to track your profits. It doesn’t have to be a complicated system. I use an excel spreadsheet to track the cost of my inventory, when I purchased it, and how much it sold for. That what I can make sure I am making a profit and moving merchandise through my closet as quickly as possible.
I have another section on my spreadsheet where I keep track on my business expenses, such as shipping supplies, and then at the end of each month I calculate my profit. Simple organization can help you stay on top of finances and improve your business.
Storing Your Inventory
Part of running a reselling business is holding on to your inventory while you wait for it to sell. And as you scale your business, it is important to stay organized to ship quickly and efficiently. I started with a few under the bed storage containers and have now moved to the closet of a spare bedroom in my home. You could also get clear storage bins, shelving, or clothes racks. There are plenty of great options depending on the type of inventory you choose to sell!
It is very important to have a system to keep your inventory organized in storage. This allows you to find and pack the item quickly when sold. The last thing you want to do is sift through all your boxes to find one small item. I use a simple number and color system to find all my inventory with yard sale stickers from the Dollar Store. I have also seen other resellers label boxes, organize closets by size, alphabetize, you name it! Whatever method you choose you choose do to it, stay organized!
Know Your Tax Liability
If you run a business, you will need to pay taxes. It is the law. You will want to consult a tax professional regarding your specific business.
For state sales tax, each of the above platforms will collect this from your buyers and send it to the proper location for you. There should be no need to collect taxes yourself.
While starting your own business or growing a side hustle can feel overwhelming, it will be worth it! Have other questions on how to start your own reselling side hustle? Comment down below or follow me on Instagram for more tips and tricks.
