How to Start a Reselling Business Online
Reselling can feel overwhelming at first. This guide breaks the process into clear steps you can actually follow.
Introduction
Reselling products online is a flexible way to earn income, whether as a side hustle or full-time business.
The resale market is booming – in the United States alone, secondhand sales were about $56 billion in
2026, with online resales making up roughly $30 billion of that . Globally, the resale industry is projected
to keep growing each year . This means there’s massive opportunity for newcomers to start profitable
reselling ventures. But where do you begin?
In this guide, we’ll walk you through how to start a reselling business online from scratch. We’ll cover
choosing what to sell, picking the right platforms (like Amazon or eBay), sourcing inventory, and key steps
to set up and grow your business. The tone here is friendly and experienced – think of it as advice from a
seasoned reseller who wants to see you succeed. Let’s dive in!
What Is Online Reselling?
Online reselling simply means buying products (often at a low or wholesale price) and then selling them online at a markup to make a profit. Unlike creating your own product, reselling involves sourcing items
that already exist – from thrift store finds to wholesale goods – and listing them on e-commerce platforms
or your own website. Many entrepreneurs prefer reselling because you don’t need to invent a product; you
leverage existing products and market demand.
Reselling can take many forms, such as:
- Retail arbitrage: Buying discounted or clearance items from retail stores and reselling them online.
- Thrift flipping: Finding secondhand treasures (clothes, antiques, electronics) at thrift stores or yard sales
and selling for a profit on sites like eBay.
- Wholesale reselling: Buying bulk products from manufacturers or wholesalers (often via a resale license)
and selling individually on Amazon, eBay, etc.
- Private label reselling: Purchasing generic products and rebranding them as your own to sell (common
with Amazon FBA sellers).
No matter the approach, the core idea is the same: Buy low, sell high – while adding value through
curation, convenience, or reaching the right buyer. Step 1: Identify Your Niche or Product Market
The first step is deciding what you want to resell. It might be tempting to “sell everything under the sun,”
but most successful resellers start with a focus. Choosing a niche (or at least a product category) helps you become an expert in that area and stand out in a crowded market. Here’s how to pick a niche:
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Consider Your Interests and Knowledge: Start with products or categories you’re passionate about
or understand well. Love sneakers or vintage fashion? Perhaps your niche is trendy shoes or retro
clothing. Enjoy tech gadgets? Maybe resell used electronics. When you care about the items, you’ll
have more fun and be better at assessing their value.
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Research Demand and Competition: A good niche has high buyer demand but isn’t overly
saturated with competition. Look at popular selling platforms for product categories that sell briskly.
For example, apparel, baby products, tools, cosmetics, and electronics are consistently popular
markets. Within those, find sub-niches that are in demand. For instance, “women’s plus-size vintage
clothing” could be a niche instead of just “clothes.” Use tools like Google Trends or marketplace
search results to gauge interest.
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Check Profit Potential: Make sure the products in your chosen niche have room for profit. High-
demand items that command higher price points tend to be good for resale. But also consider
sourcing costs – rare collectibles might sell high, but can you acquire them cheaply? Aim for products
where you can source for significantly less than the average selling price.
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Validate with a Small Test: Before you go all-in, test the waters. Source a small batch of items in
that niche and list them. See how quickly they sell and what profit you make. This real-world
validation will confirm if your niche is viable.
Niche Example: Maria loves thrift shopping for vintage décor. She notices mid-century modern home items
(think 1960s lamps, retro kitchenware) are hot in online communities. She checks eBay sold listings and
sees many such items selling for good prices. Maria decides to niche into “vintage mid-century home décor.”
By specializing, she attracts buyers looking for that style and builds a reputation as a go-to seller in her
niche.
Step 2: Research the Market and Competition
Once you’ve picked a product area, take time to research your market and competitors. Thorough market
research will save you from investing in items that don’t sell and help you understand how to position your
business. Here are key steps:
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Study What Sells (and What Doesn’t): Browse popular marketplaces (Amazon, eBay, Etsy, Facebook
Marketplace) for items in your category. Filter for “Sold” listings (on eBay) or look at best-sellers (on
Amazon) to see which products are in high demand. Pay attention to product variants, brands, and
price points that seem to perform well. Also note items that are listed but not selling – these could
indicate oversaturated or low-demand products to avoid.
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Identify Successful Competitors: Find a few top sellers in your niche. What are they doing right?
Check their online stores or profiles: how are their listings titled and described? What pricing
strategy do they use? Do they offer free shipping or bundle deals? Read their customer feedback to
see what buyers appreciate or complain about. This isn’t to copy them exactly, but to learn best
practices and find gaps you can fill. -
Look for Market Gaps: Is there something buyers want that isn’t readily available? For example,
maybe lots of people search for “organic baby clothes 0-3 months” but not many sellers offer it. Such
gaps are opportunities. Or perhaps competitors have poor photos or slow shipping – you can set
yourself apart by doing these better.
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Understand Seasonality and Trends: Some products boom during certain seasons or holidays
(think lawn furniture in summer, toys in December). Be mindful of seasonal demand so you can
source inventory at the right times. Additionally, stay tuned to trends via social media or Google
Trends. If a certain style or gadget is trending, being early to resell it can be very profitable.
Reality Check: Not every product that you love will be a bestseller. Validate assumptions with data. It’s
better to spend a week researching than to spend money on stock that sits unsold. Join reseller forums or
social media groups; often resellers share tips on current hot sellers (and duds) which can inform your
choices.
Step 3: Take Care of the Legal Basics
Before you start selling in earnest, make sure you handle the legal and business setup side. Treat your
reselling venture like a real business from day one – this protects you and sets a strong foundation for
growth. Key tasks include:
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Choose a Business Name (Optional): You can simply operate under your own name, especially as a
sole proprietor on platforms like eBay. But if you want to build a brand (even if it’s “Maria’s Vintage
Finds”), pick a unique business name. Check that the name isn’t already trademarked or in use.
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Register Your Business: In most locations, you may need to register your business with local or
state authorities . Many resellers start as a sole proprietorship (just you, operating under your
own legal name) or form a single-member LLC (Limited Liability Company) for liability protection.
An LLC or corporation legally separates your personal assets from the business – something to
consider as you grow. Registration requirements vary by country/state, so check your government’s
small business website.
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Obtain Necessary Licenses/Permits: Depending on where you live and what you sell, you might
need certain licenses. Common ones include a reseller permit or sales tax ID (allows you to buy
wholesale tax-free and collect sales tax from customers) and possibly a general business license for
your city. If you plan to buy from wholesale suppliers, a reseller or tax ID is often required to prove
you’re a business.
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Set Up a Business Bank Account: It’s wise to separate your business finances from personal. Open
a dedicated bank account (and possibly a credit card) for your reselling income and expenses. This
makes bookkeeping and tax time much easier, and it looks more professional when dealing with
suppliers or setting up payment processors.
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Understand Tax Obligations: Yes, even online income is taxable! You’ll need to report profits on
your taxes. If you’re in the U.S. and expect to make significant profit, plan to file a Schedule C for
business income. Also learn about sales tax rules – in many U.S. states, online marketplaces collect
sales tax on your behalf, but if you sell through your own website, you may need to collect sales tax
for customers in certain states. We’ll touch more on taxes in a later article, but be aware from the
start. Consulting a tax professional for new small businesses is never a bad idea.
Taking these steps might seem tedious compared to the “fun” parts like sourcing products, but they are
important. By setting up properly (and legally), you avoid troubles down the road. It also signals that you
take this seriously – you’re not just hawking a few items casually; you’re building a real reselling business. Step 4: Choose Your Selling Platform(s)
Next, decide where you will sell your products online. New resellers today have a buffet of platform
options, each with its pros and cons. You can start on one platform and expand later, or use a couple from the get-go. Here are the most popular reselling platforms to consider:
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eBay: One of the original online marketplaces, eBay is excellent for both new and used items across
almost every category. It’s especially known for collectibles, vintage items, electronics, and clothing.
Pros: huge global buyer base (134 million active buyers worldwide as of recent count), flexibility to
auction items or set fixed prices, and no need for upfront approval in most categories. Cons: fees
~13% on average, high competition in some niches, and you handle shipping unless using their
fulfillment. Great for beginners due to ease of use and broad audience.
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Amazon: The largest e-commerce platform in the US, ideal if you sell new products (or collectible
books, etc.). Amazon’s FBA (Fulfillment by Amazon) program allows you to send inventory to
Amazon warehouses and they handle storage, shipping, and customer service – a big convenience.
Pros: Enormous customer base (2 out of 3 Americans shop on Amazon), Prime 2-day shipping can
boost sales, and high trust from buyers. Cons: Requires more setup (you need a Professional Seller
account for serious selling, $39.99/month), categories like toys or beauty may require approval, fees
can be around 15% plus fulfillment fees, and competition is fierce on popular items. Amazon is great
for scaling up a business, but can be a bit complex for a very first timer – still, many beginners do
start there with the right guidance (see our Amazon FBA beginner article).
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Etsy: A marketplace for handmade, vintage (20+ years old), and craft supply items. If your niche
involves unique vintage pieces or you plan to create some products (say, upcycled furniture or
crafted jewelry), Etsy is perfect. Pros: targeted audience for artisan and vintage goods, lower listing
fees (around $0.20 per listing + ~6.5% transaction fee), and tools for small sellers. Cons: You must
stick to allowed categories (can’t sell just anything unless it’s vintage or handmade), and competition
among similar crafters can be tough.
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Poshmark, Mercari, etc.: These are popular apps/platforms especially for fashion and lifestyle items
(Poshmark for clothing/home goods, Mercari for almost anything). Pros: very easy to use via
smartphone, built-in social/community features that can help sales, and prepaid shipping labels for
convenience. Cons: Fees (~20% on Poshmark), and you often need to share/follow on the app to gain
exposure. These platforms are beginner-friendly for selling clothes, accessories, and everyday
goods.
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Facebook Marketplace and Local Apps: Facebook Marketplace lets you list items to local buyers
(and now also allows shipping nationwide for certain categories). Great for selling bulky items
(furniture, etc.) locally or testing demand without fees. Other local-focused options include Craigslist
(old-school but still effective) and apps like OfferUp. Pros: Often no fees for local cash sales,
immediate local demand for certain items, and you can avoid shipping. Cons: Safety considerations
meeting buyers in person, and prices tend to be lower because buyers expect local bargains.
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Your Own Online Store: As you grow, you might build your own website using Shopify,
WooCommerce, etc. An independent e-commerce site gives you full control over branding and
customer experience. Pros: no marketplace fees on each sale (aside from payment processing fees),
you own your customer list, full control of your brand. Cons: You have to drive your own traffic
(marketing needed), monthly platform costs, and need to handle technical setup. Many resellers
eventually add their own site in addition to marketplaces – it can be a long-term goal once you
establish your business. Choosing Strategy: If you’re just starting, a smart approach is to start with 1–2 platforms that best fit
your products. For example, many beginners start on eBay due to its versatility. If you have a niche like
vintage clothing, you might do eBay and also Poshmark. Master those first. You can always expand later
(known as multi-channel selling). There are even tools to help list inventory across multiple sites once you
get the hang of it.
Also, be aware of each platform’s policies. Read the seller rules and fee structures so you won’t be surprised
later (we’ll discuss typical fees in a dedicated section). For instance, eBay gives you 250 free listings per
month then charges an insertion fee, whereas Amazon’s individual plan charges per item listed. Knowing
this helps you budget and choose wisely.
Step 5: Source Your Inventory
Now for the fun part – getting products to resell! Sourcing inventory means finding items at low cost that
you can flip for a higher price. How and where you source will depend on your niche and budget. Here are
several popular sourcing methods:
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Thrift Stores & Garage Sales: Classic and budget-friendly. Thrift shops, yard sales, flea markets, and
estate sales are treasure troves of undervalued items. You might find a designer coat for $5 that sells
for $50+, or an old video game console for a few bucks that collectors will pay a premium for. This
method is great for unique or vintage niches. It does require time and a “hunter’s eye.” Tip: Go early
to yard sales for the best picks, and don’t be afraid to negotiate prices.
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Retail Arbitrage: This involves buying new items on clearance or sale from retail stores (Walmart,
Target, etc.) and reselling online. For example, a toy might be on clearance for $10 at Walmart but
consistently sells for $30 on Amazon. Retail arbitrage is how many Amazon and eBay sellers get
started because it’s accessible – just scan store shelves for deals. You can even use apps to scan
barcodes and check current online prices. Keep in mind, supply is limited to what you find, and some
stores have limits on bulk purchases. But it’s a quick way to get inventory.
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Online Arbitrage: Similar to retail arbitrage but done online. You hunt for deals or wholesale lots on
websites, then resell on another platform. For instance, buying a lot of 50 discontinued makeup
items on an online clearance site, then selling individually on Amazon for profit. You can also source
from other marketplaces – sometimes people sell things cheaply on Facebook Marketplace or
Mercari that you can flip on Amazon or eBay. Caution: ensure authenticity and condition, especially if
you’re buying online without seeing the item.
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Wholesale Suppliers: Once you have a bit of experience, you may buy bulk from wholesalers or
manufacturers. This often means getting a reseller license or tax ID to prove you’re a business.
Wholesalers can provide large quantities of new products at a low per-unit cost. For example, you
might buy 100 phone cases for $2 each from a wholesale supplier and resell at $10 each. This
method gives you consistent stock, but usually you must invest more upfront and stick to one kind of
product for a while. Websites like Alibaba, SaleHoo, or local wholesale trade shows are places to find
suppliers. Always vet suppliers for reliability and quality – request samples if possible.
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Liquidation and Pallets: Big retailers often liquidate customer returns or excess inventory in pallets
(large bundles) sold for cheap. You might buy a pallet of mixed electronics returns for a few hundred
dollars, not knowing exactly what’s inside, but the treasure could be worth much more. Companies
like Liquidation.com or B-Stock supply these, and some local wholesale warehouses specialize in
reseller pallets. The upside is a very low cost per item, but the downside is the gamble – some items might be damaged or unsellable, and you need space to process a lot of goods. If going this route,
start with “beginner-friendly” pallets of popular items and ensure you have a plan to sell them.
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Dropshipping Suppliers: This is a different model where you don’t buy inventory upfront at all.
Instead, you list products from a dropshipping supplier (who holds the stock), and when you get a
sale, the supplier ships directly to your customer. While dropshipping has low startup cost, it comes
with its own challenges (like slimmer margins and less control). We have a separate article
comparing reselling vs dropshipping – but know that sourcing via dropshipping means your
“inventory” is essentially product listings you create through a supplier’s catalog. Shopify’s app store
or sites like AliExpress are common ways to find dropship products.
Pro Tips for Sourcing:
- Start small and diversify. Don’t blow your entire budget on one huge bulk buy. It’s smarter to try a variety
of sources first. For example, spend a weekend thrifting and also test a small wholesale order. See which
yields better profits.
- Calculate your potential profit before buying: A golden rule – always estimate what an item will sell for
minus fees and shipping, then compare to the buy cost. For instance, if an item costs $5 and you believe it’ll sell for $15, factor maybe 15% fees (~$2.25) and $5 shipping – your net might be only $7.75, which after the
$5 cost leaves $2.75 profit. Is that worth it? Maybe yes, maybe no, depending on volume. But do this math
upfront to avoid losses.
- Build relationships. If you find a great source (a thrift store manager, a wholesaler, a clearance outlet
employee), be friendly and professional. Sometimes resellers get tips on when new stock comes out, or can
negotiate bulk deals by building a rapport.
Sourcing is the lifeblood of your business – no products, no sales! In the beginning, it might feel like
treasure hunting (which is part of the excitement). As you grow, you’ll get better at knowing exactly what to
buy for profit and possibly develop regular supply chains. Take it step by step.
Step 6: Create Great Listings That Sell
With inventory in hand, it’s time to list those items for sale. Your product listings are like your storefront
displays – they need to attract buyers and convince them to purchase. A compelling listing can make the
difference between an item that sells in days versus one that languishes for months. Here’s how to make
your listings shine:
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Write Clear, Keyword-Rich Titles: The title of your listing is critical for search visibility. Include the
most important keywords buyers would search for. For example, instead of a vague title like “Phone –
good condition,” use “Apple iPhone 11 – 64GB Black (Unlocked) Excellent Condition”. Put brand,
model, key specs, and condition if relevant. On eBay or Amazon, good keywords help your item show
up in results . But keep it readable – avoid keyword “stuffing” that makes no sense.
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Provide Detailed Descriptions: In the description, accurately describe the item’s features, size,
materials, and condition (especially if used). Honesty is vital – if the item has a flaw or wear, note it
clearly. Transparency builds trust and avoids returns. Use bullet points for specs or important details
so buyers can scan easily. Also, consider telling a little story if applicable (e.g., “Authentic vintage
1970s concert tee from AC/DC tour”). Finally, include relevant keywords naturally in the text too (for
SEO on sites like Etsy or eBay search).
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Use High-Quality Photos: Pictures are the first thing buyers look at. Use a decent camera (modern
smartphones suffice) and take photos with good lighting against a clean background. Show the item from multiple angles. If it’s brand new sealed, show the seal; if it’s used, show any tags or serial
numbers, and photograph any flaws closely. For clothing, using a mannequin or well-lit flat lay
increases appeal. Ensure images are clear and not blurry – low-quality or unclear photos are a
common newbie mistake. You don’t need professional studio shots, but aim for bright, well-framed
images.
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Competitive Pricing: Price your items thoughtfully. New sellers often ask, “How should I price?” A
simple method: check what similar items have sold for recently (on your platform’s sold listings or
using price research tools). That gives you the market rate. You can then decide to price at market
value or slightly lower to sell faster (or higher if your item is in better condition or you’re willing to
wait). Remember to factor in your fees and shipping when pricing (more on fees later). It’s fine to
start a bit higher and be open to offers if your platform allows bargaining. Be careful not to
overprice out of sentiment – an item is only worth what the market pays. Conversely, don’t
underprice so much that you lose money after fees. Aim for that sweet spot where you’re
competitive and profitable.
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Offer Good Shipping Options: When listing, specify how the item will ship. Fast and affordable
shipping attracts buyers. If possible, offer free shipping (just incorporate the shipping cost into your price) – many buyers filter for free shipping items. If not, use your platform’s shipping calculator to
charge a fair shipping fee based on weight/distance. Also, clearly state handling time (how quickly
you’ll ship out after purchase). As a new seller, try to ship orders within 1-2 business days to earn
positive feedback for fast service. Mention in the listing if you ship worldwide or only domestically.
Each platform has its own listing nuances – e.g. eBay lets you add item specifics (use those fields, they
improve search visibility), Amazon requires you to match an existing product listing or create a new one
with standardized info. Take a little time to read any listing guidelines for your platform. For instance,
Amazon has rules on keywords and formatting, and Etsy allows personal touches in descriptions.
SEO Tip: If you have your own website or even on Etsy/Ebay, using relevant keywords in your title and
description helps your listing show up in search engines. Think like a buyer: what words would someone
type into the search bar if they wanted this item? Include those (if they accurately describe your product, of
course). For example, for a vintage dress, include era/style keywords like “90s grunge floral dress” if
applicable – those terms will hook the right audience.
Step 7: Fulfillment – Packing and Shipping Your Orders
So a buyer has purchased your item – fantastic! Now you need to fulfill the order by delivering the product
safely and promptly. New online sellers sometimes trip up here, but a smooth fulfillment process leads to
happy customers and good reviews. Key points to manage:
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Packing Materials: Stock up on some basic shipping supplies. Depending on what you sell, you may
need various box sizes, padded envelopes, bubble wrap, packing tape, shipping labels, etc. Reuse
clean packaging from your own online purchases to save costs (just remove old labels). For fragile
items, invest in bubble wrap or foam peanuts; for clothing, poly mailer envelopes work well. Having
supplies on hand ensures you can ship quickly.
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Shipping Carriers & Costs: Decide which shipping service to use. Common options: USPS, UPS,
FedEx in the U.S., or national postal services in other countries. For small, lightweight items, postal
service first class or priority mail is often cheapest. Heavier or larger items might be better via
FedEx/UPS ground. Most selling platforms allow you to purchase discounted shipping labels directly through them – use that feature, as it often gives you a better rate than retail. Always include
tracking so both you and the buyer can track the package. If you offer international shipping, be
aware of customs forms and higher costs. It’s okay to start with domestic-only until you get a handle
on it.
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Calculate Shipping Into Price (if Free Shipping): If you offered free shipping, remember that you
pay the cost. Hopefully you built that into your item price. Keep an eye on average shipping costs for
your items so you don’t undercharge yourself. For example, if most of your orders cost $5 to ship,
ensure your profit margins accommodate that. On the flip side, if charging separate shipping, try to
be accurate and not overcharge too much, as that can deter buyers. Using an online shipping
calculator or your previous shipment data helps get this right.
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Handling Time: Ship orders as quickly as you reasonably can. Fast shipping is often mentioned in
positive reviews. If you stated a 2-day handling time, try to ship in 1 day if possible. This delights
customers when they get items sooner than expected. Print the packing slip or include a small
thank-you note in the package for a nice touch. Once shipped, upload the tracking number to the
platform (if it’s not automatic) so the buyer is informed.
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FBA Note: If you’re using Fulfillment by Amazon (FBA) for Amazon sales, your “shipping” process is sending bulk inventory to Amazon’s warehouse. Amazon then takes care of individual order
shipments. FBA sellers need to prep and label items according to Amazon’s guidelines (poly-bagging
liquids, labeling each unit, etc.) and create a shipment plan in Amazon Seller Central . While it’s
more upfront work to send a batch to FBA, it frees you from daily shipping tasks. If you choose the
FBA route, be sure to follow their prep requirements closely to avoid inventory issues.
Taking care with your packing and shipping pays off through customer satisfaction. An item arriving
intact, on time, and as described will earn you positive feedback and repeat buyers. Mistakes like slow
shipping or damaged packaging can lead to complaints or returns. So treat each order like a gift you’re
sending – pack it with care and send it off promptly. Over time, you’ll streamline your process (perhaps
designate a shipping station in your home, pre-pack popular items, etc.).
Step 8: Provide Excellent Customer Service
Even though you’re running an online business behind a screen, customer service is critical in reselling.
Buyers have questions, problems can occur, and how you handle these situations will make or break your
reputation. Here’s how to keep customers happy (and earn those 5-star ratings):
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Prompt, Polite Communication: Buyers may contact you with questions before purchase (“Can you
provide more measurements on this jacket?”) or after (“When will this ship?”). Respond as quickly as
you can, even if it’s just to say “Hi, I’ll get that info for you shortly.” Be polite and professional in all
messages. If someone makes an offer or asks for a discount, stay courteous even if you decline.
Clear communication builds trust.
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Honor Your Commitments: If you stated in the listing “ships within 1 day” or “includes original box,”
make sure you do those things. Failing to meet what was promised in the listing can lead to unhappy
buyers. If something unexpected happens (you got sick and shipping is delayed a day, or you
discovered an accessory was missing), proactively message the buyer, apologize, and offer a solution
(like a small refund for the inconvenience or option to cancel if they prefer). Most people are
understanding if you keep them informed.
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Handle Problems Gracefully: Not every sale will go perfectly. Perhaps the item arrives broken, or
the buyer claims it never arrived. Maybe you accidentally shipped the wrong variant. When issues arise, the key is to remain calm, professional, and solution-oriented. For item not received, initiate a
track/trace and refund if truly lost. For damaged items, apologize and offer a return/refund or
replacement if you have one. Yes, you might lose a bit on that transaction, but think big picture: a
satisfied customer (or at least one who feels you tried) is far better than a scathing review or claim.
On platforms like eBay, responding to cases quickly and doing right by the buyer will protect you
from negative feedback in many cases.
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Encourage Feedback and Reviews: Positive reviews build your credibility. After a successful
transaction, you can politely encourage the buyer to leave feedback (“I hope you enjoy the item! I’ve
left you positive feedback as a buyer. If you have a moment, I’d appreciate you doing the same for
me.”). Don’t harass or beg – just a gentle prompt. On Amazon, direct review requests outside their
system aren’t allowed, but you can use the platform’s “Request a Review” button in Seller Central.
Provide great service and feedback often takes care of itself.
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Offer Fair Return Policies: New sellers sometimes fear returns, but having a reasonable return
policy can actually increase buyer confidence and sales. Consider offering at least a 30-day return
window if your platform allows. Yes, you might get a few returns, but overall it can lead to more
people willing to buy. If you sold exactly as described, many buyers won’t bother returning unless there’s an issue. Factor occasional returns into your business costs. And if a return does happen,
process it promptly and professionally. You can relist the item or learn if there was something that
could be improved.
Remember, in online marketplaces your reputation is everything. Future buyers will look at your seller
rating and read reviews. By delivering what you promise, communicating well, and handling any hiccups
with grace, you’ll build a strong reputation that attracts more customers. Many successful resellers have
repeat buyers who trust them – strive for that kind of relationship. It can lead to loyal customers who check
your listings regularly or even ask you to source things for them!
Step 9: Track Your Finances and Scale Up
As your reselling business gets rolling, keep an eye on the numbers and look for ways to grow. Even if you
started as a casual operation, treating it professionally will help you maximize profits and expand. Here are
final tips on managing and scaling:
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Keep Records of Sales and Expenses: From day one, maintain a simple spreadsheet or use
accounting software to track your income and costs. Record each item’s purchase cost, selling price,
fees taken by the platform, shipping cost, etc. This lets you calculate your true profit on each sale
and overall. It’s also essential for tax time – you’ll want to report income, and you can deduct
business expenses like cost of goods, shipping supplies, marketplace fees, etc. Good record-keeping
will make filing taxes much easier and ensure you’re complying with the law. Even a basic Google
Sheets or Excel file is fine to start.
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Reinvest Profits Wisely: In the beginning, you might not pay yourself much; instead, you’ll likely
reinvest earnings into more inventory or better tools. That’s normal. As you identify what sells well,
channel profits into scaling that up – buy more of the winning products or test related items. At the
same time, be cautious of over-extending. A common mistake is overspending on initial inventory
before you fully understand the market. So grow gradually: if you made $500 profit this month,
maybe use a portion to increase inventory, but keep some as reserve or to invest in things like
marketing, education, or improved equipment (e.g., a label printer to speed up shipping). -
Analyze What’s Working (and What’s Not): Every few weeks, review your sales. Which items gave
you the best ROI (return on investment)? Which ones took forever to sell or had slim margins? Use
that insight to refine your sourcing strategy. Perhaps you find that home appliances are moving
slowly, but video games fly off the shelf – focus more on the latter. Maybe you notice you get a lot of
questions about sizing on clothing – that tells you to include a size chart or measurements to
improve listings. Treat your business like an experiment that you continuously fine-tune for better
results.
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Build Your Brand (Optional): If you plan to make reselling a long-term venture, think about
branding. This could be as simple as a cohesive username/store name and a logo on your eBay store
or Poshmark closet. Branding helps you become memorable. Some resellers create Instagram or
TikTok accounts to showcase their finds and build a following (which can drive buyers to their store).
It’s not required, but in niches like vintage fashion, having a social media presence and a brand
identity can significantly boost your business. Just avoid any branding that infringes on other
companies’ trademarks – create your own unique brand name.
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Consider Scaling Platforms or Hiring Help: As sales increase, you might expand to more platforms
(multi-channel selling) to reach new audiences. There are tools to list on eBay, Amazon, and others simultaneously and manage inventory centrally. More sales channels can mean more revenue. It
also means more to manage, so at some point you might enlist help. This could be a part-time
assistant to help pack orders, or a virtual assistant to handle customer messages. Scaling too quickly
without systems is a pitfall, so document your processes and use software or help to stay organized
as you grow.
Above all, maintain a customer-centric mindset. Happy customers lead to a healthy business. Keep learning
from other resellers – the community of online sellers is huge, and you can find YouTube channels, forums
(like the r/reselling subreddit), and blogs where people share experiences. Continuous learning will keep
you ahead of the curve on trends and best practices.
Conclusion: Starting a reselling business online is an exciting journey. You’ve learned the steps: find your
niche, set up shop legally, source smartly, list attractively, provide great service, and manage your finances.
With dedication and adaptability, a small reselling side hustle can grow into a significant income stream.
Take it one step at a time, and don’t be afraid to make mistakes – every seller learns by doing. Now, it’s time
to put this into action. Open that seller account, source your first products, and start reselling! We wish you
the best of luck on your reseller adventure.
If you want to keep leveling up, browse more guides on ResellerStartKit and use the calculators in our Tools section to sanity-check every deal.
Next step
Use our Profit & Fees calculators to check if a deal is worth it before you buy.