In the world where everyone is trying to become an entrepreneur, there is a great competition in the market for emerging brands. Not to mention the severe lack of innovation in these brands; most brands are just copying each other to become a part of the never-ending tug-of-war.
In this situation, resell business can be a safe haven for many entrepreneurs.
Now, to define resell business in the easiest way, it is a business which sells products from a distributor to the consumer.
There is a common misconception regarding reselling and distributing business to be the same thing. In reality, they are slightly different. In distribution, the business directly communicates with the manufacturer; while in resell there is little to no communication between the manufacturer and the seller.
Therefore, as it is defined above, the resell business involves the selling of products from a “distributor to the consumer” and not from “manufacturer to the consumer”. However, in the resell business, the distributor acts as the intermediary between manufacturer and seller. Meaning that in the resell business, companies do not directly contact the manufacturer of the product but they make terms with distributors for the availability of the product.
The resell business, being the last end of the hierarchy until the product reaches its consumer is valued the most. However, it does have its own challenges; to please the customer, to market the product, to cater to complaints, etc., but there definitely are some of its own worthy advantages.
With resell business, there is no specific industry. Resellers can sell, electronics, apparel, stationery and whatnot on the same website. Amazon, eBay, and Flipkart are the most famous and successful examples of resell businesses. There are plenty of recently emerging businesses to note; Godsey Supply, for instance, is an online resell and consignment business. It started as the eBay reseller but eventually made contacts with the suppliers of authentic and original suppliers of quality fashion and footwear products. They took advantage of the growing trend of street-wear fashion trends and used it as the competitive advantage over high-end expensive brands by reselling them on a fairly lower price.
Taking notes from the above example, it is always wiser to start small with such businesses. Online resell businesses does not require any inventory. The basic, most necessary requirement is a good, interactive website and the support staff. The support staff can consist of just 2 people in the beginning and expand with the expansion in business. As long as the suppliers are in-line and authentic, the website is up and running, and the business plan (including; long-term and short-term goals, the vision of the company, and financial requirements) is sorted out, a resell business can be initiated with a handful of products and staff.
Most of all, every business is a risk, even in this digital era, whatever investment is put in the business, one should be aware that it may or may not come back. So, besides all the strategies, investments and tools, one should have a positive mindset, motivated approach, and a will to struggle effortlessly, for the business to bear fruits.