Mistakes New Resellers Make and How to Avoid
Reselling can feel overwhelming at first. This guide breaks the process into clear steps you can actually follow.
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Starting a reselling business can be exciting, but it’s easy to stumble if you’re not careful. Many new resellers
make similar mistakes that can cost time and money. Below are common pitfalls and practical tips to steer
clear of them. Avoiding these traps early on will keep your profits healthy and your business on track.
1. Skipping Market Research
Mistake: Buying inventory before understanding demand. New resellers often get inventory without
checking if products will sell.
Solution: Always research the market first. Use tools like Google Trends, completed listings on eBay, or
Amazon Best Sellers to see what’s popular . Join seller groups on Facebook or Reddit to ask peers about
hot items. Before you buy, ask: Who will buy this? How many people want it? What price have similar items
sold for? Checking sold listings on eBay is a simple way to gauge resale value .
Tip: Keep a log or spreadsheet of item categories and sales performance as you go. This helps you notice
what’s flying off the shelf and what languishes unsold.
2. Overbuying Inventory Too Soon
Mistake: Buying too many units (or too many different items) before validating what sells. This leads to a
“death pile” of unsold goods .
Solution: Start small and test. Think “buy one to sell one” initially. If a product sells quickly, reorder more. If
not, don’t chase it. This approach prevents tying up cash in items that take months to sell.
Gary Vaynerchuk emphasizes this: if you’re new, stick to smaller purchases so you can turn inventory into
profit before moving on . He notes that beginner-friendly liquidation pallets (mixed, easy-to-sell items)
can help you see quick profits and gain experience .
Tip: Estimate how many hours it takes to process each item you buy (from listing to shipping). If you buy 50
items and each takes an hour to handle, that’s a huge time commitment up front. Balance your buying with
your listing capacity.
3. No Sales or Distribution Plan
Mistake: Buying inventory without a plan for where or how you’ll sell it .
Solution: Decide your sales channels before purchase. Will you sell on Amazon, eBay, Facebook
Marketplace, Poshmark, or locally? Different platforms have different audiences and fees. Also plan how
you’ll price items. For example, if you buy a lot of branded electronics, do you plan to list on Amazon FBA, or
test the local market first? If you grab a pallet of goods, know how you will push them out the door. One reseller’s advice: have your
sales strategy ready before the pallet arrives . That way, you avoid having inventory sit unsold while you
scramble to figure out a plan.
Tip: Even sketch a simple plan like: “I will post 10 items per week on eBay, use promoted listings, and
participate in local garage sale groups for additional visibility.”
4. Overlooking Hidden Costs
Mistake: Ignoring extra expenses (shipping, fees, storage) that eat into profits .
Solution: Factor in all costs up front. When you budget for a purchase, add shipping to your location (or to
FBA), packaging supplies, marketplace listing fees, and any repair/cleaning costs . For example, eBay
and Etsy charge listing or transaction fees, and Amazon deducts referral and fulfillment fees .
Some overlooked costs include: - Shipping supplies: Boxes, bubble wrap, poly bags. - Storage: If you store
items at home or rent a unit. - Refurbishing: Cleaning or minor repairs to make an item sellable. - Tax and
business fees: Sales tax collection software or business licenses.
Before each buy, run a quick profit calculation: Sell Price – (Product Cost + All Fees + Ads) = Profit. Avoid deals
that look great on sticker price but vanish after fees.
Tip: New sellers often underestimate shipping time and costs. Use tools like ShipStation or your carrier’s
calculator to check true shipping rates based on weight/dimensions.
5. Poor Inventory Management
Mistake: Letting items get lost, double-sold, or unsold because of disorganization .
Solution: Keep tight control over your stock. Use an inventory management system (even a simple
spreadsheet) to track quantities and locations. For each sale, deduct that item from your inventory count
immediately. Periodically audit your stock (count your physical items) to catch discrepancies. If you skip this,
you might sell something twice or under-order hot sellers.
A tip from experienced resellers: Label and store products by category (e.g., kitchen, toys) and platform. The
Vendoo blog suggests using boxes labeled by selling channel (e.g., “eBay items,” “Donations,” “Keep,”
“Trash”) to organize your space .
Tip: Many inventory tools integrate with marketplaces to auto-update quantities. Consider using one as you
grow, especially if you sell on multiple platforms.
6. Neglecting Product Quality
Mistake: Listing and selling items with damage or defects without disclosure . This leads to returns and
unhappy customers. Solution: Inspect every item thoroughly before listing. Describe condition honestly (e.g., “Minor scratch on
bottom,” “Brand new, unopened,” or “Like new”). Take clear photos of any flaws. Resellers have learned that
being upfront avoids negative feedback and builds trust. As one advice column notes, specialize in high-
quality or authentic items you trust .
If you’re sourcing from clearance lots, test products when possible (e.g., check electronics turn on). For
clothes, remove stains and ensure they are clean. A little prep work (cleaning, ironing, testing batteries) can
significantly improve your seller ratings.
Tip: Consider specializing in a niche (like only shoes, or only furniture). This makes quality control easier
because you become an expert in what “good” looks like for those items.
7. Ignoring Listing Optimization
Mistake: Creating sloppy listings or skipping keywords. Some new sellers list items without titles or
descriptions that sell.
Solution: Treat listing creation as part of the sale. Use the same SEO principles as described for Amazon
(keyword-rich title, bullet points, great photos). On sites like eBay, ensure your item specifics and categories
are correct. On Craigslist/Facebook, choose keywords people search (e.g. “vintage leather jacket men’s size
40”). High-quality photos and clear titles/descriptions are free marketing.
Tip: Don’t rely only on “haul videos” or flashy posts. They can’t sell unless the listing itself is strong【10†】. The Grind isn’t over once you have the product – it’s in optimizing and promoting the listing too.
8. Forgetting Customer Service
Mistake: Treating selling as a one-way street. Some new sellers don’t respond to buyer messages or handle
returns well, leading to bad feedback .
Solution: Always communicate promptly and politely with buyers. Answer questions about products,
shipping, and returns quickly. If a customer is unhappy, try to resolve it professionally. For example, offer a
return label or partial refund if reasonable. Good service can turn a neutral experience into a 5-star review.
As one seller advice says: “Respond promptly to inquiries and ensure your customers feel valued” .
Tip: Automate feedback requests. After a sale, send a short thank-you and ask if they’d be willing to leave a
review. Many marketplaces allow you to message buyers after delivery for feedback.
9. Overextending Financially
Mistake: Investing all your savings at once or buying inventory on credit. Overenthusiastic new sellers
sometimes overspend, then stress about cash flow .
Solution: Start with a budget and grow organically. Don’t tie up all capital in too much stock. Reinvest a
portion of your profits back into the business, but keep some reserve for lean months or unexpected expenses . Track your bookkeeping (even basic income/expense records) to know when to reinvest or
pull back.
Tip: It’s okay to start part-time. The List Perfectly blog notes that going full-time reselling right away is rare.
Many experts say be a part-time seller first to learn the ropes before quitting your day job .
10. Failing to Learn from Others
Mistake: Trying to do everything alone. New resellers often think they must reinvent the wheel .
Solution: Tap into the reselling community. Join Facebook groups, Subreddits, or forums related to your
niches (e.g., “Thrift Flippers” or “Amazon FBA Community”). Read blogs, watch YouTube channels, and
attend reselling events or webinars. Ask experienced resellers questions; most are willing to share tips.
The wholesale blog Half Off encourages new resellers to seek help when needed, noting that reselling
“thrives on community and shared knowledge” . Don’t be shy about reaching out to suppliers for
guidance or partnering with a mentor.
Tip: Regularly review and adapt. Market trends change, so what sold last year might not now. Stay flexible:
if a strategy isn’t working, be willing to pivot.
Conclusion
Avoiding these common mistakes will keep your reselling business efficient and profitable. Do your
research, manage inventory wisely, price intelligently, and provide great service. New resellers who learn
from others and continually refine their strategy tend to succeed. Keep a learner’s mindset, and remember
that every setback is a lesson that brings you closer to success.
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.