Monday, February 3, 2014

Online Resale

Online resale seems to have exploded in the last couple years.  With programs like Etsy, Ebay and a host of niche resale sites, potential sellers have never had it easier.  If you are looking to get into online resale there is a huge host of options available, all of them potentially profitable.  Today I would like to cover starting up an online business.

Choose a niche:

This is the very first thing you need to do.  You need to decide what your business will be all about. What will you specialize in?  This can range from handmade goods to reselling a specific type of item on ebay.  Choosing a niche will drive the rest of your decisions and help you decide how you would like to proceed.

Learn about your product:

This can be the most boring step but is also the most critical.  You need to take some time to do some research on your product.  Buying product X for $10 a piece may seem fine, but when you realize it only sells for $8 online, you won't be so happy.  So do the homework and research your product thoroughly.  I even suggest having Amazon/Ebay apps on a smartphone so that you can check prices on products while out in the field.  I managed to find a large supply of deadstock (year old, new in box) shoes and while not all are worth reselling, some are.  I use my phone to check each item before I decide to purchase it.

Find Supply:

Now that you have chosen a niche you need to ensure that you can actually find supply of this niche in order to be able to resell products.  Sure I would like to sell old cameras all day on ebay, but if I only find 1 old camera a year, its probably not going to work out.  Right now you are looking for ways to gain potential inventory.  This stage can take some time and will take some persistence.  With my large inventory of deadstock shoes I now have a reliable supply.  Now that I have a consistent supply I can look into the best way to get rid of it.

Find the best site for you:

Now that you have chosen something to do, you need to find the best site for you to use.  Check out your product and decide what is the best way to sell it.  I usually advise to start on Ebay or Etsy depending on whether you are reselling items or selling handmade items.  These are the biggest marketplaces and will help you get started right away.  Pick whichever is better and get started.  With any site it’s important to get your hands dirty to find out what works best.  Jump into the site and find out how you want to use it to its full potential.

More articles will follow on Online Resale Best Practices.  Make sure to check back in the future.

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