The advent of globalisation and liberalisation in the past has opened up numerous opportunities for undertaking entrepreneurship in various sectors. Reselling is one of them and is considered highly profitable. However, starting a reselling business in India without a proper guide would be difficult and might not end up that well. But harnessing the underlying potential is also important. Therefore, this article aims at providing a complete guide for helping you do better at your reselling business and earn better profits.
What Is Reselling? Why Is It Profitable?
To do better at the business it is important that the concept of reselling is understood well. Reselling has its meaning in the word itself. It means to sell goods again. It can be brand new products or even previously used items. One acts as an agent between the supplier and the consumer. In short, you sell what you buy.
Reselling business in India is recommended to be conducted through an online mode to the benefits mentioned below.
- Low Investment Requisite: When considering the mainstream business idea of manufacturing or production of products, one has to acquire higher investment capital. This is due to the involvement of expenses regarding machinery, raw materials, workforce, and other operating expenditures. However, reselling businesses eliminates almost all of these expenses and is surely profitable.
- Immediate Setup: A reselling business is easy to set up and can be started immediately. You can initiate your activities and operations after getting your online store ready. Reselling stores can be conveniently set through eCommerce websites like Dukaan. Thereafter, you can start selling goods and earn profits depending on your sales volume.
- Offers A Wider Product Range: Reselling does not limit deals to one or two types of products. Instead one can consider a wider product range for selling and can attract consumers of different tastes and preferences. You can find the goods or products in demand at a point in time and update your inventory to draw traffic and earnings.
- Sole Ownership: The sole proprietorship businesses like reselling enable you to have autonomous decisions and the need for a time-consuming consultation process is minimised as well. Moreover, one can set their own margins for profit. The only thing to keep in mind here is to check on your competitors’ pricing policies.
- Utmost Flexibility: An online resale business offers the highest amount of flexibility as it can be operated from any part of the world and could be targeted at others. All one needs is a smartphone or laptop and good internet connectivity. Therefore, your business would continue to run without any time constraints. Also, you can choose open and close hours for your digital reselling store with utmost ease.
How To Start Reselling Business In India?
To start your reselling business in India follow the steps mentioned below for optimum results.
1. Formulate A Reselling Business Strategy
Formulating a strategy for your reselling business is the first and most important step without which the entire business would fall apart. Therefore keep in mind the 4 Ps requisite for a beneficial business strategy, namely, Product, Price, Place, and Promotion.
- Product: Conduct a detailed research on the products in demand or trend. Ascertain the varied tastes and preferences of your target audience. Also, check how others priced their product and then choose your product line.
- Price: After the selection of your product range, it is necessary to set the price at which you will sell them. The things to consider here would be your individual profit margin and competitors’ price ranges.
- Place: Then decide where you will base the reselling business and the target area of operation. The audience should be targeted according to the preferences of the people that you ascertained through research.
- Promotions: Next you have to think about a promotion strategy so that your store reaches more and more people and thereby increases the sales volume. For this, you can try social media or any other feasible medium.
2. Source Products To Resell
We know that finding the right product range is a daunting task but once that is done, another tedious task is to find a proper source of supply for that. However, before that, you have to decide whether to sell new products or thrift ones. If the concept of thrift is new to you, let’s have a brief explanation of it. These products refer to the ones that are already used by someone before you resell them. The thrift product range helps in reducing unnecessary waste and one can earn good profits from it.
After confirming the product line you would venture into, take note of potential suppliers or means of contacting them for your store. The main sources of product supply are listed below.
- Local online directory
- Online wholesalers
- Social media groups
3. Strong Branding
Branding in any kind of business is necessary as all such undertakings do rely on consumer attention and memory. To build a place in your customers’ minds, consider formulating a strong branding strategy. In a reselling business, you won’t have a direct connection with the products you care about offering since you are not the one to manufacture them. Moreover, this disconnect will enlarge if you consider a dropshipping model. Therefore, to build a consumer memory you need strong and effective branding strategies.
Some branding tips for starting your reselling business in India are listed below.
- Choose a proper business name that reflects the business conducted and the product range offered. Also, make sure that it is fairly easy to remember and doesn’t have some complex terms or jargon.
- Purchase and domain id and register it with your business name. Check out some of the eCommerce sites that enable you to register at zero cost.
- Finish selection of brand colours that suit your business name and category. This will be a stepping stone for designing your eCommerce site for business operations.
- Get your brand logo designed using the selected brand colours and design elements that go well with the business category.
- Formulate a tagline for the business that is catchy and easy to remember.
4. Choose The Best Ecommerce Site
All business operations will be conducted from the website you develop and rely on. Therefore, research various eCommerce websites you could consider and find the best one that suits your preferences. The perfect site would be the one that provides the following benefits to you as a reseller.
- Supports small business ventures
- Doesn’t require a technical expertise
- Easy to use
- Enables a free trial session
- Subscriptions are pocket friendly
- Allows scaling of operations
- Has the basic and advanced eCommerce facilities
5. Set Up An Online Resale Store And Start Marketing
This is the final step to be followed in order to commence a reselling business in India. Follow the steps as per the eCommerce site you have chosen, which would include creating an account, customising as per preference, adding products to the online store, and adding payment options for customers. Thereafter, you need to handle the inventory of goods and start shipping them as and when you receive orders. However, if you have chosen the dropshipping model inventory won’t be a concern to you but to the supplier who is assigned that task.
How To Make Better Profits As A Reseller?
The points to be considered for better profit earning in the reselling sector are mentioned below:
- Effective Pricing Policy: To earn better profits it is always recommended to avoid overpricing and follow a policy according to the industry standards. Check the competitors’ price range and then search for suppliers who would provide you with products at a cheaper price. Most reselling companies offer competitive prices that often attract customers and increase the sales volume, which in turn aids in hiking the profit incentives.
- Use Social Media Platforms Efficiently: Consider using prominent social media platforms like WhatsApp, Instagram, or Twitter, to connect with your potential buyers. You can also try informing them about any offers or benefits of getting products from you. Also, you can venture out into A Whatsapp reseller business model. This would serve as one of the best promotional strategies in the new age.
- Value Consumer Feedback: The customer is the king when it comes to any business. Therefore, it is necessary that they are satisfied with the products and services you offer. So, frequently check their feedback and comments on your business. Also, consider modifications as pert requests received. If the consumers are happy they might drive more traffic, thereby, benefiting you.
Reselling business in India is an opportunity that one would never want to miss as it requires small investments and offers the potential of higher returns. Therefore, adhere to the steps mentioned above for venturing out into the domain if you are interested. Also, don’t forget to practice the methods that have been listed for better earning possibilities. After all OF these checklist points are ticked you are definitely ready to rock your online reselling business in India.