This is how to become an online reseller in 2021

This is how to become an online reseller in 2021

👋🏾 Sanjay and Natasha here. Have you ever thought about starting a reseller business online? It's an excellent option for businesses that don't want to handle the products themselves. A reseller company gets the raw materials from the manufacturer, packages them up, and sells them to customers over the internet. However, it requires a long-term commitment to both the reseller business owner and the customer. Long-term sales models tend to be viewed as inferior by startups because they rely on quick solutions rather than a long-term sales culture that leads to a steady stream of repeat purchases. Growth involves risk, so you need to make sure that you won't get locked out by your accounting software or funding rounds if you grow successfully. 

What is an online Reseller Business?

Many e-commerce entrepreneurs have come from successful companies that themselves built their own reseller networks. These businesses develop their own niche market and drive traffic to their website from various websites that can then lead people to sign-ups for the reseller's products. They get access to big brands for much less as they can more easily wholesale everything instead of exclusively selling it for profit. Subscription-based businesses can also be great at starting off because they don't initially have much inventory to focus on sales rather than profit long-term.

There is this Fine Line between a Reseller and a Distributor of Products

A distributor's role is very diverse; however, it can be challenging to define precisely what it entails due to its broad nature. A distributor is responsible for the purchase, delivery, and marketing of any product or service sold to end consumers. Distributors may serve as the manufacturer's agent or employee in this role. They may engage in complex transactions with multiple parties to fulfill their role through effective communication and stakeholder management.


Where is the middleman advantage? There's no point in buying items from big retailers that can either have inventory or low stock for sale. If you want things to be on-demand, from as few as a few hours to a few days, then Series 0 (aka raw goods) is for you. Maybe you want to order $100 worth of goods and have them shipped the next business day. Or perhaps you just want them today, because things have been busy with your project and you want the goods asap. In either case, you need raw goods. Not just any old goods might work - it has to be items with the inbuilt capability to work for your project.

Benefits to Becoming a Reseller

The cost of starting a business is generally not as high as many make it out to be. Creating your own reseller business allows you to make money and source products typically owned by larger companies at drastically reduced prices. The top resellers I speak with each agree that one of the most significant benefits of starting your own reseller business is access to a broader product selection which can mean you can purchase things that may otherwise be considered 'niche' bring in more sales. There's also the economic argument that starting your own reseller business can create many financial advantages over buying goods from big manufacturers. 

Sell a lot of product

Being a reseller or a supplier of inventory can be a great way to grow your business. It allows you to experience the growth of your own business before anyone else does. When you become your own boss and have the freedom to decide how to spend your time and money, you will be more passionate about your work and what you are creating. Reselling multiple products allows you to work with as many different suppliers as you need without having to worry about having them all fill orders at once or sending them to different warehouses. It is also helpful when one of your suppliers has issues with one of your other suppliers. They could quickly resolve the issue themselves instead of waiting on you for months and causing even more problems.

Go to market quicker (Launch quicker)

You can launch your reseller business in as little as thirty minutes (see to the right). And it will dramatically improve your profitability right from the start. How? You'll quickly find that there are two main types of sourcing in the supply chain: supplier and Brook; supplier being what your supplier uses and Brook being who they contract with and pay. Your reseller business can then get the most significant benefits from both supplier selection (both what the customer bought and any specials they might have) and from price negotiation (which will happen really fast).

No Inventory

You can use the marketplace Oberlo for wholesale vendors to sell their products — both physical products and downloadable e-books through mobile apps. Oberlo helps you cut costs by allowing vendors to list their goods and services without carrying any inventory. This means you can keep your expenses low and merchandise free too. By removing the need to purchase stock from your suppliers, your business can focus on growing instead of filling up all that inventory with a list you don't need.

Less time needed

It's easier said than done. However, there are some benefits of being a reseller. It's a better lifestyle: Running a business as a reseller allows you to work on projects without having to worry about workers' hours, rent a warehouse, or deal with customers. It's also more profitable: You don't have to deal with inventory or shipping costs. You can focus on growing your revenue on the rest of your business instead of wasting time working on reseller development. 

Minimum Financial Risk

Starting a business from the ground up can be a great way to bring money into your pocket. But most people don't realize the substantial cost savings from starting a reseller business. Starting a reseller business saves you money on product and shipping costs, which can make all the difference. You'll have the capital to expand and bring more customers to your store. Plus, this approach allows you to avoid the risk of buying inventory in big numbers at once when you're just a minor player in an already saturated market. It also means you've got the option of being your own boss. 

Set Your Own Margins

Setting your own margin is critical for any reseller business today. This means you are in control of how much you charge your customers. Depending on how much you resell your product, you can make a lot of money. It's your choice whether or not you will make as much money as you wish here. But it should also be your choice what type of margin (if any) you want to charge to your customers. The only requirement is that it has to be profitable for you, meaning that you should be able to set your own overhead costs (like money spent on marketing or shipping) so that your profit from reselling is higher.


When it comes to reselling online marketing, a lot has been made out of the shift towards decentralization and the power of technology. But hardly anyone takes a look at another far more important factor—the power of business design. As businesses are increasingly looking to disrupt complicated markets (and often create precisely the type of disruption that was initially developed for them), they are forced to think differently about how they want to approach their strategies. And that means using design in ways that weren't necessarily intended.

Let's get sh*t done, together!

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