Today we’re going to talk about the benefits of being a reseller. We’ve already spoken about how to have custom products made for your Amazon FBA store. Now we’re going to talk about how to resell products that are already made by other manufacturers. You won’t have to ask for customizations or anything like it. All you’ll have to do is sell the item as is.
That means there are far fewer headaches involved when it comes to marketing these items. Many people are searching for how much money is fast in the world of online business. The method we’re going to talk about is one of the ways to do that. It’s not easy, but you can make money quickly by selling items that are in demand.
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Almost any item can be resold
Cosmetics, clothes, even tools can be resold. There’s almost nothing that can’t be sold. You probably don’t want to resell food for obvious reasons. Food has a shelf life that can be very short, and it doesn’t work too well with this method of making money. Almost anything that you can think of can be resold. The most important thing to consider is how much you’re paying for the product and the price you can sell it for.
It’s vital that you choose the right niche
Low competition products are great because you won’t have to fight with a ton of others to make sales. The down side to them is that you may find these products don’t fly off the shelves like hotcakes. It is entirely possible to focus on many different products that have a low sales volume.
This can provide to be profitable if you don’t mind juggling quite a few items at one time. If you’re a one person operation, it’s probably not the best route to take. You can easily find yourself way in over your head by selling too many products at one time.
You also want to keep in mind that profit margins are significant. The items you choose to sell should have plenty of markup room on them. Products with too slim of margins are risky due to the need to spend money on advertising.
If you have organic traffic that converts, this may not be as much of an issue. Almost all of you reading this won’t have a free source of organic traffic to send to your products.
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How to sell your products
There are several different avenues for selling your products. The two most common are with a Shopify store or Facebook store. By far the most popular way to resell products is by opening up a Shopify store. Though, there are other ways you can do it as well.
They too have a store option, but for ease of use sake, Shopify may be your best choice. The prices of doing business at Shopify are great for beginners and so is their intuitive back end. You can have a store set up in a relatively short period when working with Shopify.
Where to get traffic
Facebook ads are the most popular way to get traffic. Make sure to set the daily spending limit to around five dollars when first starting. The reason for such a low amount is you want to see what’s working. If an ad doesn’t work, then you’re going to have to create a new one. Also, it’s entirely possible that some ads will require some tweaking. The great thing about using Facebook ads is that they’re scalable. That means you can pump the money into them quickly once you find a winning ad.
The best kept secret is Pinterest ads
The gurus are going to be shaking in their boots once this information gets out. Pinterest allows you to buy ads on their social networking site much like Facebook does. The difference is the number of people who are buying ads on Pinterest.
This is an untapped source of traffic that’s being overlooked every day of the week. Who knows why that is, but it means you can access traffic for pretty cheap right now. The prices may go up once everyone starts to notice that Pinterest has plenty of high converting traffic at an excellent cost.
Bonus tip: Make use of Shopify blogs
You may have noticed that Shopify has an option to have your own blog. Take advantage of this option and make the most out of it. We all know that Google loves fresh quality content. You can even build backlinks to your blog. This will provide you with a great source of free organic traffic.
The quality of your blog posts is essential when it comes to receiving free traffic from Google. You may even consider making YouTube videos and putting a link to your blog post in the description. You’ll gain a backlink and also some traffic from YouTube as well.
The reasons why you should consider reselling products:
You don’t have to reinvent the wheel
You’ve got nothing at all to come up with. You’re selling products that already exist today. Anyone who has tried to source products for Amazon FBA already knows how much of a hassle this can be. The company has done all the work for you in the sense that they’ve completed the entire process of creating the product. The only effort you have to put into the whole ordeal is choosing the best products to sell.
There is no inventory to keep track of
This is a big deal on many levels. The first reason is that you don’t have to worry about where the stuff is going to sit while waiting for customers. Another aspect is the overhead required to monitor inventory. You’ve got to have more than just someone to keep an eye on the products.
There’s also the whole aspect of packaging the items for resale and shipping. It costs a lot of money to maintain inventory levels and pay someone to ship the stuff out the door. That’s not a concern of yours if you’re reselling.
Only a minimum investment is required
If you’re selling on Amazon, you’re going to have to buy the items first. There’s always the concern that no one will buy your products. If that’s the case, then you’re out all that money. You don’t buy anything when you resell products.
All of the funds required is that of setting up the store and purchasing advertising. If you do all the work yourself, then there’s even less money involved. It’s also possible to lower the costs more by relying on totally free organic traffic. If you can pull that off, then the cost of entry is very low.
Begin by selling products that you’re familiar with
Are you a gamer? If not, then don’t sell video game accessories. You’re not going to know what sells. Take a look around you and ask yourself what products do you use the most. This is actually how you determine what niche you should start with. There are things you use every day that most people don’t. It’s those little things where you can get your foot in the door. The things that interest you the most are the ones you should focus on.
Branch out once the money comes in
The first thing you’re going to want to do is to understand the process of setting all of this stuff up. After that, then you can move onto other areas. There’s no reason why a man can’t sell woman’s clothing for example. You probably don’t want to begin with that right away because it’s too much to learn at one time. You’ve first got to get the process down of finding items to resell, building a store, and getting traffic to it. After you can do it with your eyes closed, then branch out into other areas if the possibility of making a profit exists.
Don’t undersell yourself short
In the very beginning, it’s going to be difficult to make sales. The first thing you’re going to think about is lowering your prices. Why this is a bad idea is that it gets you into the habit of selling far too cheap and not investigating the real reasons why your products aren’t selling. Having rock bottom prices is never the best solution. Keeping profit margins reasonable is extremely important. You want enough room where you can advertise and still have some money in your pocket.
Lowering your prices is the last resort. It’s what companies do when they can’t compete. You will need to change your strategy if the only way you can make money is by lowering your prices. It’s not a sustainable business model unless you’re doing volume like Walmart. They’re able to pull it off; the average person isn’t.
The better option is to go through the entire process of obtaining customers and seeing where the kinks are. If they aren’t buying, then there is a problem. It may not be so apparent in the beginning, and you may need some help spotting it. Don’t be shy when asking fellow internet marketers for their advice as to why your traffic isn’t converting into sales. Sometimes a fresh pair of eyes is all it takes to spot a problem before it wrecks your entire business.