Resellers are those who buy products with the intention of reselling them to make money. As a reseller, the online business potential in India is exploding. Starting a reselling business is simple and does not necessitate a large financial commitment. The majority of the enterprises have turned their resale pastime into a full-fledged business, earning more than simply a living.
Some reselling businesses require a physical location and inventory, while others can be done entirely online. Thanks to social media, thousands of internet businesses have been founded, and they are all working smoothly and successfully. The best thing about beginning a reseller business online is that you don't have to buy stock in advance. You can begin your business with what you already have. Selling your movies, selling your art, thrift items, and so on are some of the top internet business ideas for resellers.
What is a Reselling Business?
In recent years, the reselling sector has grown in popularity. Many resellers have emerged in the market due to the rise of e-commerce giants such as Amazon, Flipkart, SnapDeal, and others, whether it's a seasonal item like diyas for Diwali or colours for Holi, or a consumable/usable item like ink, toys, video games, clothing, shoes, electronics, or anything else.
After evaluating the product purchasing source, you can start an internet reselling business in India by selecting the goods you want to sell.
Because you can sell everything and anything in this business, your reselling internet shop can expand into new domains without incurring expensive shipping costs, additional fees, or high stock costs.
Alibaba, Meesho, eBay, and the local market are online outlets where resellers buy their products.
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How to Start an Online Reselling Business in India?
1. Finalising the business specifics
Reselling is a broad field in which you can work with various products. As a result, some factors must be considered before beginning an internet reselling business in India.
a) Reseller industry
The first step is to pick what industry or niche you want to work in while reselling. Although there are no restrictions and you are free to sell any goods, it is recommended that you keep uniformity so that the buyer does not find it strange. For example, suppose a reseller primarily sells technological items such as air conditioners, heaters, fans, and lights and sells clothes, curtains, and bathroom accessories. In that case, customers may perceive this as inconsistent.
b) Target Audience
Another key element to consider is reducing your target audience and concentrating your efforts on the people you want to reach. Identifying your target audience will assist you in determining the communication route, pricing, and marketing plan.
c) Competition Analysis
After evaluating external market circumstances and having a thorough understanding of the competition and existing business practices, you design your policies. Reselling is a business in which a variety of factors are considered, such as branding and tone and pricing and a diverse product line.
2. Sourcing the Products
Resellers can obtain the products they want to sell from two different sources:
a) Sourcing Channels in your area
All resellers do not usually use online methods. Instead, they try to locate their item in their immediate vicinity and sell it there. This type of business usually has larger profit margins but smaller sales. These channels could include:
- Friends and family
- Your own collection
- Consignment auctions
- Flea Markets, Central Markets, or shopping malls
- Retail Store Clearance
- Facebook or Instagram groups
b) Apps for Resellers
Many resellers nowadays accept this strategy because it is one of the simplest and most transparent ways to obtain their materials. In India, there is a wide variety of apps to choose from. Meesho is one of the top apps, with India's best reseller business chances.
The reseller chooses a catalogue from which to place an order. They select the goods they want to buy from the catalogue and their size and quantity. Next, they must provide the delivery address, their name, and contact information. The next step is to complete the purchase by clicking the Pay Now button.' Congratulations! You've placed an order with Meesho and are one step closer to making money.
3. Establishing a Channel of Communication
It's one of the most important aspects that will determine how your clients connect with your reselling company.
Numerous websites assist in the creation of a free small-scale website. These websites are e-commerce sites that sell themes and templates. These platforms allow you to create a website without knowing how to code. Wix, Instamojo, Weebly, Yola, and a slew of other platforms are among them.
b) Websites with blogs
Writing and building blogs on WordPress, Medium, or customisable websites makes it simple to set up an online resale platform. You can also use that blog to post photographs, specifications, and other important information about your product.
c) Platforms for social media
The most realistic and effective approach for making money from reselling commercial activities is using social media platforms. You may advertise your products on social media and take orders through direct messages.
4. Marketing Strategy That Works
If you don't advertise your product effectively, your resale business will fall short. It is entirely up to the reseller to decide what techniques they will use to promote their product and increase sales. The following are some of the most typical marketing methods used by resellers:
- Offer free delivery to your home.
- Make effective presentations showcasing your product features, specifications, advantages, and pricing.
- Providing great discounts and offers initially to gain recognition
- Referral discounts
- Pricing products lower than the competitors
- Captivating messages like ‘Hurry! last few pieces left,’ or ‘Offer valid till stocks last.’
- Asking customers reviews, their feedback, and testimonials
5. Establishing Payment Channels
Following all of the procedures mentioned above will inevitably attract buyers who will begin purchasing your stuff. After receiving orders, the final and most important step is to accept payments as you may encounter challenges such as late payments, daily payment reminders, and seamless payment acceptance while creating payment channels.
Payments are completed quickly and smoothly with a streamlined payment setup and high-end user interface. Razorpay, Mastercard, Netpay International, and others are the best payment partners for online resellers.
How is the reselling Business different from Distributorship?
Before discussing the differences between reselling and distributorship, let's define who a reseller and a distributor are.
Who is a Reseller?
A reseller can be a person or a business, and it is the person who purchases items to resell them and profit rather than consume or use them. Resellers typically buy things in bulk from wholesalers and distributors at a discounted price, then sell them to end-users or places where the product is in short supply.
If you have a stranglehold on the market, resale is regarded as a very profitable business in today's world.
By merging related repackaged products, resellers increase the value or mark up the commodities they resale.
Who is a Distributor?
A distributor acts as a link between the product's or manufacturing unit's manufacturer and other firms in the supply chain, such as a retailer, wholesaler, value-added reseller, or system integrator. In other terms, it is the process of distributing goods or services to businesses or dealers. This can also be accomplished through distributors' indirect channels.
Reselling Business vs Distributorship
a) Relationship with the Production Unit
b) Inventory Control
Benefits of Reselling at Franchises
The key to success and boosting your earning potential with an internet resale business is how much time you put in and how strong your client relationships are. To increase sales, you must attract new customers and improve customer satisfaction. Additionally, reaching sales goals will allow you to earn bonus revenue.
1. Time Flexibility
You may run your resale business from anywhere, including your home, office, or even while on vacation. All you'll need is a smartphone or laptop, as well as a reliable internet connection.
Online reselling is simple to get started with because no prior work experience is required. Even if you start from the ground up as a novice, you can achieve incredible success.
2. No or very little investment required
With a small investment, you may get started in the resale industry. The only reason for this is that you are participating in the buying and selling process rather than the production process (which would require you to buy raw material and incur labour costs and many other overheads). You buy the products from a commercial source and then resell them to end-users or customers.
You won't have to go through any quality control or spend a lot of money to keep your wholesale inventory up to date. Because it is a zero-investment enterprise, starting an online reselling business in India is considered practical.
3. A profitable business plan
With a resale business, one can make a lot of money. Amazon Seller MarketPlace, eBay, OLX India, Facebook Buy and Sell groups, GlowRoad, Meesho, OfferUp, and other platforms offer India's best reseller business prospects.
If you don't want to get into manufacturing, starting an online resale business in India is a realistic option.
4. Easy to Establish
When you start an internet resale business in India, you can sell commodities on the same day. All you have to do now is make sure your platform, whether a website, an app or a social media page, is up and running!
Once you've completed it and posted the product listings for sale, you can begin earning and profiting the same day. Of course, it depends on how well your products sell.
5. Sell a Wide Range of Products
You can sell a variety of related or unrelated products to one another. The best thing about the reselling industry is that it does not bind resellers to rigid rules. The only thing resellers need to do is make sure that they're selling products that are in high demand and are of decent quality.
Suppose resellers begin their online reselling company in India with jackets. In that case, they may expand to include shirts, jeans, jewellery, purses, watches, cosmetics, shoes, and other items after their online business has grown. You also don't have to spend anything extra to add a product to your list because you pay for what you acquire from the store and sell to the customers.
6. Experience High Profit
It's all about setting your margins in the reselling company. You have complete control over the price of your goods. Before deciding on final pricing for your goods, it's a good idea to verify its cost on several web platforms and compare it to industry standards.
7. No problem with shipping and fulfilment
It does not require any fulfilment or transportation, much as other internet enterprises. As a result, when you become a product reseller, you won't have to ship anything to the buyer. You should concentrate on purchasing products through reselling websites or apps and then reselling them for a profit. Receiving cash from the consumer, or placing an online order to fulfil it are the most important components of the reselling business.
What are the most Profitable Reseller Products to Sell?
In 2022, some low-cost products with strong profit margins to offer online are listed below:
- Products for Women
- Women's Apparel
- Formal Wear
- Men's Accessories include Waist Belts, Pendants, Personalised Hooks, and more.
- Halloween Costumes and Masks
- Men's Bow Ties and Pocket Squares
- Bluetooth Speakers
- Socks and Shoes
- Outdoor Furniture
Is Franchise Resellers Business Profitable?
- Many prosperous franchise reseller firms have proven to be quite successful. Let's start with a basic understanding of what franchise resellers do.
- It is a privilege and authority to use its strategy, brand name, logo, and product for a set period. Once the purchaser invests a set amount of capital in buying the company's rights and brand under defined Terms and Conditions, both parties (the firm and the purchaser) must sign a mutual agreement.
- But firstly, in order to get a franchise, you need to be eligible for it. Research about the company you want to start a franchise, identify its eligibility criteria and ensure you have enough investment before applying for the franchise. You have to complete relevant paperwork, buy or rent a location and train staff in order to run a franchise.
- The best aspect of this business is that success is reasonably high because the brand already has loyal customers. The purchaser does not need to invest a lot of money in marketing.
The following are some of India's most successful reseller franchise businesses:
- Shop 101
- Amazon Seller MarketPlace
- First Cry Apparel and Clothing
- Lakme Business Store
- Lens kart Retail Store
- Food & Beverage Ice Cream Franchises
- Amul Scoop Franchises
What factors should you consider before starting an Online Reselling Business in India?
1. Choose a product with few competitors.
2. If you choose a product with a lot of competition, keep the price of that product lower than all of your competitors' prices.
3. Ensure that product quality is maintained.
4. Market high-margin items
5. Invest in proper marketing strategies like social media marketing
6. Ensure timely delivery
7. Provide 24/7 customer service
How can Reseller Apps Assist You in Generating Revenue?
Once you have downloaded the reseller apps, you can easily begin your reselling company. Install these applications on your device, create an account, and begin buying and selling stuff for profit.
You might be asking why these apps are necessary to download. Reseller applications make it easy to look through a list of all available products and select the finest one from reseller companies or websites that specialise in online buying and selling at a fair price.
The reselling applications will also assist you in learning with top reselling programmes and teaching you how to establish an internet reselling business in India through their lessons. Furthermore, these apps generate reseller marketing strategies, form a reseller business model, and develop solid and robust client relationships.
Starting a business online as a reseller is a great way to get started. You'll need to brush up on your business's product expertise and market trends. The reseller business can assist you in generating more income and increasing your earnings. We hope that this article provides sufficient information regarding Reselling Business in India.