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Reseller definition


Reseller (© domoskanonos / Fotolia.com)

Reseller (© domoskanonos / Fotolia.com)

A reseller refers to a merchant or a company that buys goods or services from another merchant or company with the purpose of selling them to make a profit instead of using those products or services themselves. Resellers often conduct their operations on the Internet via websites. In this article, we shed more light on reselling, the benefits it offers, and how you can start your own reselling business. You know that you want to start a business of your own, but you don’t have any specific skills that you can offer as a service, you don’t have an idea for creating a service of your own, or you don’t have any products that you can sell that are your own. That’s where reselling can come in. As a reseller, you can start your own business by selling the goods or services that other businesses offer.

What is a Reseller?

A reseller is a person or a company that purchases products or services from other people or companies. The person or company that purchases these products do not intend on using them; rather, they intend on selling them so they can make a profit.

Starting a reseller business might be a lot less expensive and easier than you might think. There are several types of reseller business that you could start. Some business do require a physical location and stock; however, there are some reseller businesses that can be run completely online without having to pre-purchase or store stock.

The Benefits of Starting a Reseller Business

There are several benefits associated with starting a reseller business that entrepreneurs can take advantage of. Here’s a look at some of the biggest benefits that this type of business can offer:

  • It’s affordable. The reseller business model is very affordable, which makes it an excellent option for those who are just getting started out and have limited resources. It’s also a great option for those who do have access to resources, but want to expand their income without making a huge investment.
  • You’re the middleperson. As a reseller, you are basically the middleperson between a manufacturer and customers. You don’t have to create any products or services of your own, but you will have access to a large selection of products and services to choose from. You can sell anything from apparel to home goods, or from telecommunications to software.
  • The time commitment is low. Starting many businesses requires a large time commitment. With a reseller business, the time commitment is significantly lower. That’s because you don’t have to generate new products or services, figure out how to package and ship products, etc. Most of the reseller process is automated, which means less of a time commitment.
  • Minimal financial risk. Not only is starting a reseller business affordable, but the financial risks are minimal. You won’t need to purchase bulk inventory, as you only pay for the goods or services that your customers order. As a result, there is much less of a financial risk.

The Downside of Reselling

As with anything, there are some downsides associated with starting a reseller business. Some of the cons might include:

  • Smaller profit margins. While you can make quick cash, you probably won’t make as much as you could if you were to sell your own products or services.
  • You might not make a profit. There is a chance that you might take a loss instead of a profit when you resell products. You could end up spending more than you actually make.
  • Quality control could be an issue. Since you won’t be handling the products yourself, there’s no way to tell what condition they will be in when your customers receive them. For example, products could be damaged, which could negatively impact your reputation.

Tips for Starting a Reseller Business

After weighing the pros and cons, if you have decided that starting a reseller business is something you want to proceed with, here are some tips that can help you set up your business.

  • Determine what type of reseller business you want to start. There are so many types of reseller business options. Some options include apparel, cosmetics, home goods, food, and even software and telecommunications.
  • Identify the niche you want to work in. This goes hand-in-hand with the type of reseller business you want to start. However, it’s a bit more involved. Once you know what type of products or services you want to resell, you have to determine what niche you are going to sell your products to.
  • Establish a website. Even reseller businesses that have storefronts should have a website. A website is a vital tool, as it serves as a way to connect with and sell your products to customers. Ensure your website is well-designed, easy to use, and is optimized to attract customers.

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Press releases

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