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How to Start Reselling Business- Best Guide

 

A retailing shop

source:wikimedia

Reselling business requires a lot of attention on import cost, Maintenance, advertisement and customer’s satisfaction.

If you will excel in these areas you will start to earn a good amount of money without doing much of technical work. But all these things will bring your business to a point where things will start to get steady, i.e., No growth in your business.

Import

  • For growing your business, you need to learn the technical aspects of the reselling business. For that you first need to understand about the quality of the goods you are buying from the distributer, for example fresh tomatoes are likely to be sold than wrinkled one. Many new resellers does not think about the quality of the product they are importing and later this cost them their customers.
  • The second thing that you need to do is to ensure that you are importing your good at the lowest rate possible. The lower is your cost price the more profit you will make. This also gives you a free hand in giving discounts to your customers, and who doesn’t like discount..!. Customers will start to come to your store more often after they will know that they can buy something cheaper than anywhere else. This is the trick by which many small marts use to ensure a monopoly in a particular region.
Graph of growth


  • Buy only what is being sold: You may have your new business get customers who need products that are not in great demand, few customers constantly comes at their store demanding stuffs that are rarely available, In a reselling business you can have different niche but you may always not have all the products of the niche, and that’s fine. Importing goods for just few customers say 1–2 is not a good choice, instead you can ask them to wait for their product to come. Cost Price of Imported Goods is already the lowest after the manufacturer sells it to the distributer, the goods which are not sold will always suffer a loss if remained unsold.

  • Many people prefer small marts and malls or big malls rather than general stores to buy what they need, why? Because they get large space, better distribution of products, wide range and on top of that a personal space to think and understand on what they want to buy, without having a feeling of someone else’s interference. Customers are mostly attracted by the uniqueness of your outlet.
  • When you will start to have more and more customers you will need to have a better customer support, ensure that every single customer on your outlet is treated with respect and is helped with the best way possible, The more hospitable you are the better is the chance for the customer to revisit your outlet. Business is the art of Retaining and finding customers, because without them, your products would remain unsold. Many big companies work mostly on having a better customer support so that they can retain most of the customers in their business chains.

Outlet

When you ensure your import is being better than before, you have to work on the outlet of your reselling business. The outlet or the operating area of a business decides that how much the business will grow, a better outlet means more customers as any human being wants a clean, organized, hygienic place. A clean and well designed environment attract people. 

Advertisement

Advertisement example
                                                                    Example of Advertisement 

After satisfying your customers you need to advertise your outlet in the best way possible

Make offers: For new reselling outlets, offers are must, the mindset behind this is, our society is filled with middle class people who want to save money as often as possible, offers make them feel like they are saving money. Thus ultimately your offers will make them come to your store or outlet.

Creating Ad in newspaper: Newspaper ads will cost you less and are most effective way of advertising, every house gets a news paper everyday and a local newspaper will make people aware that their is a store available in their town that serve on lets say groceries, Your advertisement could be ‘Get a pack of 2kg sugar free with 10kg of Wheat flour’.

Other platforms such as Tv ads, social media ads can also be used for advertising your business.

Upgrading

After following the above guide you can have your business run smoothly but at a point it will become static, for competing in today’s world you need to keep on growing and the best way for doing that is to constantly upgrading everything you put in your business. Find new ways to retain and call customers, Advertise with great ads and there are much more things to do.

Categories of Reselling Business

Offline vs Online business


  • Online Business
  • Offline business
Business could be carried on both offline and online platforms. but running on both is recommended as the online market has versatile buyers. 

In todays modern world offline business is not enough to make an exponential profit thus many of the business owners are shifting from offline shops to online stores. The benefits of joining the internet is billions of users are using it too. If you do everything right their are high chances of getting a boost to your business. 

Many well established shopping platforms such as Flipkart and Amazon provide a selling facilities for sellers, one can list their products simply by registering their shops on these platforms. 

Pros of offline business

  • Permanent customers: in offline shops permanent customers serves a major role in the growth and development of the business, these customers will always try to establish the trade as they will feel comfortable to spend their hard earn money.
  • Easy trade: An offline outlet follows easy trading system it only involve buying and selling at a particular place.  
  • High security: As compared to the online world which is more vulnerable to frauds the offline business maintains security provided by the shop staffs or the keeper himself. 

Cons of offline business

  • Absence of abundance of customers: If you are having a small selling area you can't entertain more than 10 customers at a time this, customers who are not satisfied could not come to the shop ever again. Thus offline businesses face problem of number of customers. Also in offline retailing shops the shopkeeper could not reach many people at a time it requires more staffs to address customers, adding staffs in the business means more expenditure.
  • Requirement of employee: Any offline business which is in growing stage requires more people to maintain the stability in the business flow in other words a business need a proper physical management to have it running. employees ease the work for the busines owner but they are needed to be paid according to the work they do, thus adding more employees cost more for the owner. 
  • operating cost: Every business requires an operating cost, It could be in the form of electricity bills, employee payments, providing better facilities, etc., In offline business an outlet requires these features to be maintained regularly and as the business grows these costs also grow. 

Pros of online business

  • Abundance of customers: In todays modern society people are shifting more to the online world and why should they not? today everything is just one click away from toothpicks to chisels, from microscope to telescope, every thing which we need and want is available online. Majority of people do not want to go to marts and stores to purchase something that is not needed at the moment of time, people search the internet and get the same product with less price online, also with so many people online sellers can attract them and sell their products. 
  • Better advertisement reach: Advertising on internet is an easy task these days also they get spread too fast. Social media plays a crucial role in the advertisement and everyone is using those these days. 
  • Easy to maintain: An online store is way more easy to maintain than an offline store the only requirement is a right man or right knowledge for designing your outlet. Moreover a single device can manage tons of data and millions of customers without costing a huge amount of money. 

Cons of online business

  • Security: Online business require digital payment, without proper security the trade could be both dangerous for the buyer and the seller. many big companies work on their security system carefully. 
  • Technical knowledge: to run an online business one must have at least basic knowledge of programming and website development as hiring a professional developer is costly. 


Conclusion

Making money in Reselling business is not a tough work, the real work is to keep your business growing at a steady rate. Four things are most important to gain profit are Import cost, Better outlet, Customer Satisfaction and Consistent Upgrades.

 Reselling business is can be classified into Offline business and online business, both form of business requires regular upgradation and is beneficial in its own ways. The online business could provide better profit as it has more customers reach and easy maintenance as compared to offline business which requires more employees and has limited space of operation.  

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