How Much Money Do You Need to Start Reselling?

To be honest, not that much

Reselling 101

By RC Staff

23 February 2026

Key Points

A few hundred dollars is enough for most new resellers, and $1,000 is plenty for almost any category
Smart usage of credit cards allows you to take advantage of out-of-reach flips
Taking advantage of return policies mitigates risk and increases opportunities

Starting capital is one of the most common questions beginners ask, and the honest answer is that it depends. Your goals, the products you’re targeting, and your ability to take losses all affect the equation. That said, reselling has a lower barrier to entry than most side hustles. You don’t need to drop thousands before your first flip, and many resellers have built serious operations starting from almost nothing.

Quick Answer

A few hundred dollars is adequate starting capital for most new resellers. If you can put $500 toward inventory, you’re in a good position to get started. At $1,000, you have enough runway to pursue most categories and absorb a mistake or two without it hurting too much.

The real variables aren’t how much money you have; they’re how you use it and what you’re targeting. A reseller with $300 and good sourcing instincts will consistently outperform one with $2,000 who’s chasing hype without a plan.

Pay Attention to Return Policies

The second thing most beginners overlook is how much a generous return policy affects the actual risk you’re taking.

Most major retailers, including Target, Walmart, Best Buy, and many others, offer 30-day return windows on most products. For a reseller, this is a safety net that effectively removes the financial downside of a failed flip.

Why Return Policies Matter

If you can return your item, it becomes a zero-risk flip
No risk means more confidence; you can afford to load up on an item
This multiplies your profits if the flip is successful
And if not? Take your item(s) back to the store for a full refund

Because of this, any item you can buy from a store with a standard return policy can largely be excluded from your budget calculations. You’re not actually tying up capital in any meaningful way. You’re holding the item on what amounts to a 30-day free loan, and if the flip doesn’t work out, you return it.

This fundamentally changes how you should think about risk as a beginner. When you see an opportunity at Target or Best Buy, the question isn’t really “can I afford this?” It’s “is there a realistic chance this sells within 30 days?” If yes, and if returns are available, the financial exposure is close to zero.

There are a few caveats. Some items are marked final sale, meaning no returns are accepted. If you buy something on a final sale basis and the flip doesn’t work out, you’re stuck with the inventory. Be especially careful here. Any item marked final sale should be treated as a real capital commitment and weighed against your actual cash available. Always check the return policy before you buy.

Some items also sell out and can’t be purchased from a retailer in the first place. Limited drops, sold-out sneakers, and secondary market inventory don’t come with return policies. For those, your cash on hand is what actually constrains your position.

Why Credit Matters for Resellers

Here’s something most beginner guides won’t tell you: good credit can be worth more to a reseller than cash in the bank.

When a limited sneaker, a Pokemon set, or a sold-out collab drops, the window to buy is often measured in minutes. Resellers who have access to a credit card with a healthy limit can move immediately. Resellers scrambling to check their checking account balance may be too slow, or simply locked out.

Credit cards let you float inventory between the moment you buy and the moment you sell. A flip that takes two weeks to close is no problem if you’re not paying out of pocket until the statement is due. And if the item sells quickly, as many do, you’re paying off the card with the proceeds and pocketing the margin.

The math can be significant. A reseller with good credit and a $5,000 limit can pursue opportunities that someone operating solely on $300 in savings simply cannot. Over time, the difference between having access to credit and not having it isn’t a few extra flips; it’s potentially thousands of dollars in missed profit.

This doesn’t mean you should carry balances or buy inventory you can’t pay off. The strategy only works if you’re disciplined. Resellers who use credit cards well treat them like short-term bridges, not free money. You flip the item, collect the profit, and pay off the card. Rinse and repeat.

If you’re just starting out and your credit isn’t where you want it, building it should be a parallel priority alongside your reselling education. A secured card, consistent on-time payments, and keeping your utilization low will get you there within a year. It’s worth it.

Budget Ranges By Category

If you want a more concrete breakdown, here’s how starting capital maps to different approaches.

Retail arbitrage and clearance flipping can be started for as little as $50 to $100. You’re buying discounted products from retail stores, usually on clearance, and flipping them for a markup. With generous return policies available at most major retailers, your effective risk is close to zero on items you can return. This is the easiest entry point.

Online arbitrage works similarly to retail arbitrage but sources from online retailers and marketplaces. You can start with $100 to $200 and scale quickly once you understand which categories have consistent margins.

Thrift store flipping is one of the cheapest ways to start, with many resellers beginning on $50 or less. Margins are inconsistent but can be exceptional. Returns aren’t an option here, so every purchase is a real capital commitment.

Limited drops, sneakers, and trading cards are where starting capital starts to matter more. Sneakers often require $150 to $500 per pair at retail, and popular releases can require multiples. Trading cards have a wider range; a single hobby box can run anywhere from $30 to $500 depending on the set. For these categories, access to credit becomes particularly useful.

Luxury goods and watches are a different conversation entirely. Authentication, knowledge gaps, and the price of individual items make this a category where you really do need meaningful capital before you start. A solid foundation in a more accessible category first is the smarter path.

The Real Constraint Isn't Money

A common mistake beginners make is treating capital as the main barrier between them and a profitable reselling operation. It’s usually not.

Sourcing intelligence, market knowledge, and speed matter more than cash in most categories. Knowing which items are worth targeting, where to find them, and how to move them quickly will take you further than a large bankroll without that knowledge. Resellers who have been doing this for years don’t win because they have more money; they win because they’ve developed the judgment to act quickly and accurately.

Start with what you have. Focus on low-risk opportunities, especially those backed by return policies. Build your credit alongside your operation. And be patient with the learning curve. The money will follow once you understand the mechanics.

Bottom Line

You don’t need a lot of money to get started reselling. A few hundred dollars, a decent credit card, and the discipline to use both wisely will get you further than most beginners expect. For items with return policies, your actual financial risk is minimal. For items without, size your bets to what you can genuinely afford to hold.

If you want to know what to actually buy first, we’ve published a guide to the best items for beginners to flip that covers the categories with the best combination of accessibility, return availability, and profit potential.