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How to Become a Reseller: Best Reselling Tips and Tricks

Are you interested in entrepreneurship and you like to know how to become a reseller? This article is for you. Learn what reselling actually means and how to become a successful reseller.

What is reselling?

Before we get to learn how to become a reseller, let’s first understand what reselling means.

Reselling is when you act as a middleman between a manufacturer and a customer. Essentially, you purchase products from a wholesaler or distributor at a lower price point and then sell them to customers for a higher price point. This is an excellent way to earn some extra income.  

Businesses are started every day that are based on the concept of selling a product to a customer. This is because there is always a demand for it and the potential for earning profits is quite high.

Some online sellers will buy products in large quantities and then sell them individually on websites like eBay or Poshmark.

Reselling categories that are good for selling:

What should I resell?

There are many items that can be profitably resold. Among them are clothing, toys, electronics, and appliances. These items can often be bought at a low price and then sold for a higher price, resulting in a profit for the resellers.

The resell model has unlimited potential. Some entrepreneurs focus on reselling as their primary source of income.

Many businesses choose to supplement their existing product and revenue streams by reselling goods. This can be done by becoming an affiliate or channel partner of the manufacturer, which is a common approach for small technology businesses. There are many channels for reselling goods, such as eBay or through one’s own website.

Some small business owners sell products through online marketplaces such as Amazon or their own websites. Others may use other sales channels, such as wholesalers or classified advertisements.

Many entrepreneurs resell goods through their own stores, websites, social media, or eBay. Some even buy from eBay and resell through another channel. B2B or B2C sales channels are also popular among resellers.

Reseller opportunities can be found by assessing the needs of businesses and then locating a provider who can fill those needs. Once you have found a provider, it is crucial to secure the opportunity by paying the appropriate fees.

There are endless opportunities for reselling products, whether it be beauty products, collectibles, or eBay consignments. You can find great deals on products and make a profit by reselling them.

Tips on How to Become a Reseller

Have a Business Plan

As you start to research reseller business opportunities, it’s helpful to formalize your ambition with a business plan. This will give you a roadmap to follow as you start your business, and help you track your progress along the way.

Creating a business plan can help you better understand the market opportunity, your goals, and how you can achieve them.

This will show potential affiliates, wholesalers, and lending institutions that you are committed to your venture.

Understand the compensation model

Typically, resellers are compensated either by a “per-minute” or a “percent” commission.

The way the buy rate model works is that the reseller buys the product from the vendor at a wholesale price, and then resells it at a retail market rate. The net revenue that the reseller earns is the difference between the two prices.

In the percent-of-revenue reseller agreement, the partner agrees to pay a set percentage of revenue to the manufacturer. This compensation structure can be competitive if you negotiate with the manufacturer upfront.

This compensation model will require some upfront negotiation in order to be profitable and competitive. Ongoing negotiations may also be needed to keep this model running smoothly.

Read the T&Cs Before You Sign Any Reseller Agreement

Make sure to read the contract terms carefully before signing any agreements. This will help you understand your rights and responsibilities. If you have any concerns, ask a lawyer to read the agreement for you.

You can also ask to talk to other resellers or reference customers to get a better understanding.

Avoid scams

Be wary of work-from-home business opportunities, many of which are just elaborate pyramid schemes that are just there to scam you.

The government is always on the lookout for any type of fraudulent activity, and the SBA website offers helpful tips on how to evaluate business opportunities and spot potential scams. If you come across something that seems too good to be true, be sure to report it so that others can be protected from falling victim to these schemes.

From there now you can follow these simple steps:

1. Source stock

Look for products that you can sell. You can look in your closet, ask your friends, or search online.

If you have access to a supply of cheap products, you could consider selling them. You can resell anything, from clothes to technology to furniture. Find something with high demand and low supply, and you’ll have a good chance of turning a profit.

You might want to find an item or niche of items that you have access to where the competition isn’t too fierce.

2. identify your selling channels

You can reach your target audience by selling your stock through an online marketplace. This is a quick and easy way to get started.

These sites allow you to easily list items for sale and promote them. They also typically offer secure payment services, which can help you keep track of all your transactions.

You can create an account on any of these websites and start selling your inventory.

3. Register the business

If you want to start a resale business, you will need to register it with the local or state government. This usually involves filling out some paperwork and paying a fee. In order to register your business, you will need to know where it is located or where it is incorporated.

Setting up your business properly can protect you against scammers, help you gain the trust of your customers, and prepare you for getting a reseller permit.

4. Get your resale license

A reseller permit lets you buy items for resell without having to pay sales taxes on the purchases. Customers will still need to pay the taxes when they purchase the items from you. You can report the taxes on a periodic basis.

With a resale license, you have access to more companies selling in bulk. This can be helpful if you’re starting an e-commerce business. In addition, some e-commerce platforms will handle this for you, which may also be a reason to open an account.

If you have a resale license, you can access returned or unsold items from clothing stores and turn them into a profit.

Reseller marketing and market development funds

If you are reselling brand names, you will have an advantage in the market, but this does not mean you will not need to put in the effort to market your products.

As an affiliate reseller, it is important to have a marketing plan that you can execute and measure in order to provide insight and reporting to wholesale distributors. By having a well-executed marketing plan, you will be able to increase your sales and better promote the products and brands that you are selling.

Some large manufacturing companies provide their affiliates with MarketingDevelopment Fund (MDF). Under an MDF, the reseller receives a set amount of funds to promote the brand and product that they are selling.

The dollars you earn will usually be a percentage of your net sales revenue, and you will be able to rebate it towards approved marketing programs.


If you’re interested in becoming a reseller, there are many things to consider before taking the plunge. One of the most important is market development funds. These funds can help you with marketing and advertising your products and services to potential customers. In this blog post, we’ve shown you how to become a reseller and access these vital resources.