What is a Reseller and What Do They Do?

Reselling 101

By RC Staff

21 June 2023

What do resellers do?

A reseller is a person or company that buys something just to resell it. The retailer is usually a middleman for resellers since many are unable to directly go to a maker to acquire goods they can purchase from a big-box shop to make money.

The reseller’s main task is to locate a source of goods at a low cost and then resell those goods to customers, usually online, at a higher price. Resellers may also be involved in other activities such as storage, packing and shipping. Many people associate reselling with luxury goods like sneakers and jewelry, but there’s much more to it. There’s a lot of profit to be made outside of normal reselling methods, and effective resellers will branch out to cover more than the obvious.

Why reselling has taken off

Although several aspects have made reselling profitable in recent years, it is a simple process to get started and will continue to be for the foreseeable future.

For most people, establishing a business may not be the easiest option; in most situations, you’ll need a big bankroll to get started. However, if you want to be your boss and resell products as a reseller, the cost of entry is often significantly lower.

During the pandemic we saw a major surge in the popularity of reselling. The combination of an uncertain economy, unexpected free time, and free cash in the form of stimulus checks made for a lot of money moving around in circles. Reselling as a business took off significantly in the last few years.

How to start reselling

The best way to get started as a reseller is to find products that are in high demand and have low supply. One of the most common ways to do this is to find clearance items at brick-and-mortar stores and then sell them online. Resellers can also find products on websites like Alibaba and then resell them on platforms like Amazon and eBay.

Another option is to find products that are being discontinued or no longer produced by the manufacturer. These items can be found on sites like Overstock and Liquidation.com. Resellers can also find products on sale at online retailers such as Amazon, Walmart and Target.

Once you have found a product, you will need to set up an online store or create a listing on an online marketplace. When customers purchase your product, you will need to ship it to them. Small scale resellers typically handle shipping and handling themselves. Amazon does offer its “Fulfilled by Amazon” program to simplify order fulfillment. For more on FBA and our thoughts, check out our article.

After getting familiar with the basics of reselling, you can start to scale your business by expanding your product line and increasing your marketing efforts. Resellers can also partner with other businesses to cross-promote their products.
Reselling can be a great way to make money and be your boss, with a low cost of entry and the ability to scale your business.

Steps to begin reselling

Take inventory

One of the most significant advantages of reselling is flexibility. Unlike a traditional business, you don’t need a warehouse or significant stock on hand. You can focus on picking up a few items at a time and flipping them quickly for more than you paid.

As a reseller, you can sell other people’s products and never have to worry about restocking or logistics; you just buy the items and sell them. This is not only great for those starting with little capital but also for anyone who wants to keep their overhead low. You can even get started without a website!

You don’t have to keep any stock if you want to sell things over the internet. the only thing you should be concerned about is where you’ll be able to sell them. The greatest news is that marketplaces like Amazon, eBay, and Mercari make it simple to get started.

Know your marketplaces

There are several marketplaces where you may begin your reselling journey! The most popular venue to get started with is eBay, which began as a marketplace for people to sell used items. It has evolved into one of the major marketplaces for all types of goods today, and it’s simple to get started. You can check out for our guide to selling on eBay here.

Creating an account and setting up payment details is all it takes to get started on eBay. Today, there are numerous rivals of eBay, but if you’re just getting started, this is probably your best first bet! There are specialized sites like Discogs for vinyl records, StockX and Grailed for shoes, or Depop for clothes, but eBay is a straightforward platform for listing general goods

Online marketplaces may be a fantastic way to make money, but they aren’t your only option. You will always have the option of selling locally. You can sell items locally without paying a fee using Facebook Marketplace, Craigslist, and other platforms.

We recommend that you check with your local police department if you want to sell things online. Most police stations have a secure area where online sellers can do business. This is the greatest method to keep yourself safe while also preventing yourself from becoming a victim of a crime.

Financing your reselling business

It can be quite cheap to get started as a reseller. While many of the items we post may seem expensive, there are also a variety of cheaper flips that are still quite profitable. Having around $1,000 is a great number to start with, but it’s entirely possible to start earning money with a single $50 flip. As long as you reinvest the profit into buying more items to resell, you can grow your operation quite quickly.

One of the most significant benefits you have as a reseller is a freedom to set your pricing. This is where true control and profit are found. You may pick whether or not to follow the trend or sell for a higher price. You have ultimate control, and reselling allows this to happen. You can choose to sell your products quickly, or hold out for a higher price down the line as markets dry up

To sum it all up, reselling is here to stay as it’s a simple business with a lot of benefits. If you’re looking for a side hustle to make some extra money, this is one of the finest alternatives available. Make sure you’re subscribed to our newsletter for updates on new and profitable items to resell, and look into joining RC Elite if you really want a leg up on the competition.