How to Get Started Reselling: A Beginner's Guide to Making Money as a Reseller

One of the easiest entries into entrepreneurship today is reselling items online. This form of ecommerce allows for one to get started even if they have very little or even no business experience, and you can begin simply by taking the first step.

In this guide, we’ll go over how you can start reselling anything. We’ll point you in the direction of several niches that have proven to present some of the best opportunities today.

Let’s start with a brief overview of what a reseller is and what it looks like to get started from scratch.

Jump ahead to:

• What is a Reseller?
• Is Reselling a Legitimate Business Model?
• How to Start Reselling from Scratch
• How to Resell Anything Online
• How Easy is it to Start Reselling?
• Learn Reselling Tips, Tricks, and Strategies from the Experts
• Reselling FAQs

What is a Reseller?

A reseller is simply someone who sells an item that they previously purchased. Reselling is perhaps the simplest business model that one can start, as it requires no product development or creation, and in many cases you don’t need to do any marketing as you will be using popular platforms such as Amazon and EBay that have this area taken care of. 

In short, anyone can be a reseller fairly easily. You may have even resold in the past without realizing that’s exactly what you were doing.

So, if you want to create a business as a reseller, you need to resell items on a consistent basis, which is generally only possible if you settle on a specific niche and become an expert in it–more on this later.

Is Reselling a Legitimate Business Model? 

One of the greatest concerns surrounding reselling is its legitimacy as a business model, in other words, if it’s legal or not.

A few specific examples surrounding this concern include the areas of ticket and shoe reselling, which are both popular niches for resellers.

Let's start with shoe reselling. In 2022, Nike made an announcement that their terms of service have been updated to include the right to cancel orders that are suspected to have the sole intention of resale. For this specific situation, reselling Nike sneakers did not become illegal, it simply created a challenge.

For tickets, recent bans were enforced after controversy surrounding the wide use of bots by resellers for the Taylor Swift Eras tour which seemed to have left just about every ordinary customer empty-handed when trying to buy the tickets on their debut. 

However, although there were some regional bans on methods such as the use of bots for ticket reselling, ticket reselling remains legal for the same reason that any method of reselling is legal: any owner of an item that they have legally purchased has the right to resell it.

To be totally sure of your compliance, make sure that you review the terms and services of the specific product and company of the products that you’re planning to resell, and properly license your business and obtain a reseller permit if you plan to scale. 

Be sure to also familiarize yourself with platform rules that you might need to comply with in order to get approval to resell specific items–for example, with Amazon ungating.

Lastly, verify the authenticity of any product to avoid dealing with counterfeit goods, which is illegal on both the buying and selling sides.

How to Start Reselling from Scratch

In order to get started the right way with a reselling business, you’ll need to create a plan that you can execute. Here are the essential steps that you’ll need to take to lay the foundation to launch your reselling business from scratch:

1. Create and register your business

The first step you must take if you want to build a serious reselling business is to create and register your business. Providing this legal structure will not only give you personal protection, it’ll give you credibility with suppliers, customers, and even accountability to yourself.

2. Research local laws and regulations

Before you get started in any specific realm, do a quick search with any rules in your area to make sure you’re compliant with any local laws related to the type of reselling you want to take on. Be sure to understand any tax obligations as well.

3. Obtain a reseller permit

Now that you’ve set up your business, you can apply for an obtain a reseller permit or certificate. This will allow you to get goods at wholesale prices without paying sales tax and will open up the doors to work with more suppliers.

4. Set up your online presence

Create an online store or sign up for accounts on the top ecommerce platforms. The platform you choose will depend on your niche, but generally speaking, if you’re a beginner, eBay is the best choice. Amazon and Etsy are other options that may require a bit more planning. You should also set up social media which will help establish your brand image and credibility so you can move on to creating an online store outside of a major platform.

5. Set up a way to get paid

Most platforms will already have a built-in way to pay you, so just make sure to connect this to your business bank account and stay organized for easy accounting in the future. 

6. Focus on a niche

While it’s possible to resell a broad collection of items, the most profitable resellers identify and focus on a specific niche. Pick a specific product category or market segment, ideally one that aligns with your current interests, that you can become an expert in. Becoming a go-to provider in a certain niche will not only give you higher conversion and credibility but will also give you a greater ability to attract and retain loyal customers.

7. Source inventory

The lifeblood of your business as a reseller is sourcing inventory at a pricepoint that allows for healthy profits and market demand that allows you to reinvest and grow quickly. Sourcing is different for every reseller, and everyone has their own secret sauce that is what creates the viability and sustainability for their business. While you can source individual items from thrift stores and local or online marketplaces, one of the best sourcing methods involves working with a wholesaler to get bulk inventory.

8. List and sell products

Once you have your inventory, it’s time to list your items and get paid. In the beginning, you can test different platforms and marketing methods to bring in customers, but as you gather more data surrounding conversion rate and prices, narrow your focus to include only the most profitable methods. Keep your product listings attractive, detailed and accurate, and be sure to answer all customer inquiries promptly so that you establish the reputation of having great customer service–one of the hallmarks of any reselling business that goes on to build a thriving online presence.

How to Resell Anything Online

If you’re looking to resell absolutely anything online, we’ve got you covered with guides that are packed with specific advice on how to become a profitable reseller in any niche.

Review each guide and if one of them resonates strongly with you, don’t hesitate to jump in and get started as soon as possible:

How to resell on Amazon:

The largest ecommerce platform in the world is Amazon. Its revenue dwarfs that of basically any competition, and a large percentage of sales is generated by independent sellers, including Amazon resellers. However, the platform’s standards keep the seller quality high, which is good for customers but can prove difficult for new sellers who are unsure how to navigate regulations and limitations for new sellers.

How to resell on eBay

Perhaps the easiest platform for beginners is eBay. It’s far more liberal in its requirements for sellers, so it’s possible to sell a huge spectrum of items in any condition, making it a great place not just for reselling items but also for sourcing items. It’s also one of the few platforms out there with enough activity to maintain the viability of auction-based listings.

How to resell sneakers

When it comes to niches with a rabid fanbase, it’s hard to beat sneakerheads. From Air Jordans to Yeezys and celebrity collaborations like Travis Scott Nikes, the selection of sneakers to profit from is vast. However, success requires staying on top of the latest trends and knowing exactly which models to resell.

How to resell tickets

Reselling tickets can be incredibly lucrative, particularly for headline concerts and other highly anticipated events. The key is to secure early tickets at face value for a hyped event, as they are guaranteed to sell at a higher price and might rise substantially as demand increases. It’s important to be aware of any local regulations and the overall ethics surrounding this market so that you can operate smoothly and avoid any potential issues.

How to resell concert tickets

Concert tickets in particular can be incredibly profitable due to a demand that almost always exceeds the supply, particularly for artists with a cult following. However, it’s for this same reason that you need to be especially careful in this realm, especially post-Eras tour Ticketmaster debacle which shined a not-so-attractive spotlight on ticket resellers and caused some changes and controversy in this realm.

How to resell watches

The watch market is an emerging, low key opportunity for resellers. Although it’s not quite as hot as other collectibles like sneakers, this is exactly what makes it a great opportunity. A big budget will allow you to enter the realm of watches like Omega and Rolex, but you can start with a more modest budget as well with the right education. Authenticity is of utmost importance, especially if you’re dealing with more expensive models.

How Easy is it to Start Reselling?

Generally speaking, reselling is easier to start than just about any other ecommerce business model. However, it isn’t without its downsides.

Here’s a list of pros and cons that you can review to get a realistic understanding of the whole landscape:

Reselling Pros:

• Can get started quickly
  You can get start reselling basically immediately: signing up for a platform like eBay and making your first listing takes mere minutes, and you can source an item quickly once you know what you’re looking for.
• Low startup costs
  Reselling requires minimal initial investment–you can start with even the most modest budget, sourcing items from thrift stores, garage sales, or the clearance racks. 
• Low initial time investment
  Unlike other business models that require more extensive planning, marketing and product development, as a reseller, you can get started as soon as you identify and buy an item. This makes it great for those who are looking for a side hustle due to limited time.
• Diverse product options
  As a reseller, you can choose from an incredibly wide variety of products, from clothing and electronics to collectibles and other niche items. This, combined with the ease of starting, grants you flexibility to pivot and adapt based on what aligns best with the current market opportunities and your personal interests.
• High degree of flexibility?
  If you want to be your own boss, reselling is hard to beat. Your online store is open 24/7, and you can spend as much or as little time sourcing from anywhere you’d like, including online and in person. This allows you to create a schedule and method that fits best with your current commitments, so you can resell easily on a spectrum from side hustle to full fledged business.
• Possible to sell without holding inventory
  With dropshipping, Amazon FBA, and other modern ecommerce strategies, it’s possible to operate as a reseller without the added burden of managing physical inventory, which is particularly pesky at scale.
• Potential for scale and high profits
  One of the greatest things about reselling is the upward mobility it presents. As you gain experience in sourcing, selling, and understanding how the market moves, you can scale and expand by expanding your business by sourcing more products, expanding to other platforms, and driving more revenue.

Reselling Cons:

• Can be hard to establish consistent profits
  Especially when you’re starting out, consistency is the hardest part about reselling. You might be able to source and sell one item, but it can be hard to do it on a consistent basis unless you have a reliable and repeatable method.
• Competitive 
  Since the barrier to entry in both time and money is so low, it’s easy for new people to enter, making the market competitive, especially for popular items. Standing out can be hard, and might require lower pricing in addition to exceptional customer service.
• High degree of dependence
  Reselling is a business model that requires a high degree of dependence by nature: you’re marketing brands that aren’t yours, on platforms whose rules can change at any time, all while depending on sources to keep prices and inventory that you have no control over.
• Physical inventory management
  If you’re not dropshipping or using third party fulfillment methods like FBA, managing inventory can be challenging. Storage space, picking, packing and shipping all while managing stock levels can be especially difficult as you scale and may even require you to recruit staff or expand to a warehouse.
• Volatile
  Reselling can be incredibly volatile, as it’s subject to demand which can vary drastically. For example, if you’re selling a trending product, if the trend shifts, you can be stuck holding inventory that no one wants to buy anymore, which will affect the sales price and your profitability. 
• Must constantly educate
  As a reseller, you’ll need to constantly monitor and adapt to market trends and demands all while effectively managing inventory in order to remain relevant. In order to do this, you need to constantly educate, which can be both time consuming and difficult to find a reliable source of accurate and relevant information.

Learn Reselling Tips, Tricks, and Strategies from the Experts

If you are looking for a go-to source for all reselling advice, head over to our blog, where we regularly post the latest news and information to keep you on the latest pulse of all things reselling. You’ll learn about all markets, from those that are trending to evergreen, and various methods including dropshipping, Amazon FBA, and more.

For those who are serious and ready to commit and invest, consider joining a private group that can take your reselling game to the next level whether you’re a beginner or someone looking to grow their existing reselling business .

Our marketplace is home to a variety of expert-led groups who have specialties and tools in just about any niche you can imagine, from sneakers to tickets, NFTs and price errors and everything in between. You can find welcome, informative reselling groups that will guide you through the entire process, right here on Whop. Increase your chances at reselling success with advice from experienced, successful resellers.

Reselling FAQs

How much can you make reselling?

The income potential in reselling varies widely, and depends on many factors such as the time you commit and the niche you’re in. Some resellers earn a modest side income of a few hundred dollars per month, while others have operations that rake in substantial full time income of tens of thousands of dollars monthly. Your ability to grow and manage scale in addition to the ability to quickly capture new opportunities while establishing brand presence, expertise and customer loyalty are the biggest factors that will contribute to your success and income level.

Is reselling a good side hustle?

Due to its flexibility, low startup costs, and potential for quick returns with relatively low effort make reselling one of the best side hustles out there. You can get started with small items that you can source locally, or even those that you already own while working around your own schedule, making it one of the best ways to supplement your current income without quitting your day job.

What is the best product to resell?

While the exact best product to resell will always change, it will always share the traits of having high demand, profitability, and easy to source for you while not being overly competitive. Categories that the best product falls into include electronics, fashion, trending items and other collectibles with established markets. The best product for you to resell also is dependent on your current interest and knowledge, which will make it easier for you to spot good market opportunities and resonate with customers.

What is the easiest product to resell?

The easiest products to resell are those that are most accessible to you, have a strong market demand, and can be easily listed on a popular platform like eBay, Amazon, or Facebook marketplace. Smaller items that are built simply with little potential for customer complaints or inquiries are easier to handle and ship as well, making them reseller favorites. Examples of these include stamps and trading cards.

How much does it cost to start reselling?

Starting a reselling business can cost as little or as much as you want. On the cheapest end, you can begin by flipping items that you or friends or family already own. You can also source from thrift stores, garage sales and clearance racks. This method can easily be started and scaled with less than $100. With a higher budget, you can get into buying wholesale inventory or dealing with more expensive items such as watches, houses, or cars. In general, compared to other business models that deal with physical inventory, reselling requires the least amount of initial capital and can be started in just about any niche for under $1000.