How To Start Online Reselling Business In India?
Interested in becoming an online entrepreneur? Don't worry! We will make it easy for you with the help of this article on how to start an online resale business in India.
It is not necessary to invest enough money to become an entrepreneur. Start a business that can help you achieve success and become an entrepreneur.
How can you become an online entrepreneur?
- Create a Strong Business Plan
- Know your competition
- understand your worth
- mass study market
- find a good coach
- learn money management
- stay committed and focused
- Set short term and long term goals
- Be adaptable to the market scenario
- Reinvest your business profits
However, online entrepreneurship is a very vast concept. We can narrow it down for you. How can you earn enough money online?
How to start online reselling business in India?
Have you ever heard of reselling business? Obviously, you must have! Reseller business can be incredibly profitable and can be one of the best options, especially for those who have entered into new business. But, before proceeding further, let us understand deeply who is a reseller? And what is a reseller business?
Who is a Reseller?
A reseller can be an individual or a company. It is one who buys goods for resale and profit making rather than buying or using them. Typically, resellers buy goods in bulk from wholesalers and distributors at low prices and then sell them to the end user or to places where the product is hardly available.
In modern times, resale is considered a very profitable business if you have a stronghold on the market.
Some resellers add value to related products by repackaging or marking the goods they have resold.
What is a Resale Business?
Resale business has become widely popular in recent times. E-commerce giants including Amazon, Flipkart, SnapDeal, etc. have emerged as a number of resellers in the worldwide market. Whether it is seasonal products like diyas during Diwali, or colors during Holi, or other consumable/usable items like ink, toys, video games, clothes, shoes, electronics, or any other item.
After considering the product purchase source, you can choose the product you want to deal in, and start an online resale business in India.
You can sell anything, and everything in this business, which is why your resale online shop can venture into various domains without the high remittance expense, extra expense, and expensive stock expense.
Some online sources from which resellers buy their products include Alibaba, Meesho, eBay or the local marketplace.
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How is resale business different from distributorship?
distributor
Before we get into the difference between resale business and distributorship, let us understand who is a reseller and a distributor.
We have already told you guys about reseller, so to start with distributor, here we go.
1. Who is a Distributor?
A distributor is an intermediary entity between a product's manufacturer or manufacturing entity and other businesses or supply chains—which may be a retailer, wholesaler, value-added reseller, or a systems integrator. In other words, it is the process of providing goods or services to businesses or dealers. This can also be done using indirect channels with distributors.
2. Resale Business vs. Distributorship
a) Relationship with the production unit
Compared to resellers, a distributor has a stronger relationship with the manufacturer or production unit department of the goods.
Resellers do not share a strong bond with producers of goods as they buy products from wholesalers or distributors and sell them to consumers. However, the distributor buys the products in bulk directly from the manufacturers and provides them to the wholesalers, retailers and resellers.
b) stock management
Resellers are not required to maintain stock to sell or exchange items. Whereas distributors hold stock physically, as they have to buy in bulk from manufacturers, and need to ensure that they have massive storage capacity and warehousing services to hold inventory.
Distributors own, maintain and manage huge inventory, which helps them to sell products efficiently. However, resellers do not keep the product in stock as the resale model is based on a demand-driven approach. Because their business model follows this approach, they only purchase items for which customers have already placed orders. However, they do not buy any products from distributors or other sources until they receive orders.
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Benefits of becoming an online reseller
1. Flexibility of Timing
Flexibility of time How to start online reselling business in India?
You can conduct resale business operations from any location, be it your home, office, or even when you are on vacation. All you need is a smartphone or laptop and a good internet connection.
It is very easy to start reselling online, as it does not require any previous work experience. Even if you start from scratch as a beginner, you can still do wonders and achieve immense success.
2. No or Minimum Investment Required
You can land a resale business with minimal investment. The only reason is that you are involved in the buying and selling process and not in the manufacturing process (which will require you to buy raw materials and labor costs and many other overheads). You buy the products from a commercial source and further sell them to the end-users/customers.
You don't need to go through any quality control or invest huge amounts to maintain your inventory of wholesale products. It is a zero investment business, so it is considered possible to start an online resale business in India.
3. Attractive Business Plan
Attractive Business Plan | How to start online reselling business in India?
One can make a lot of money with the resale business. Several platforms including Amazon Seller Market Place, eBay, OLX India, Facebook Buy & Sell Group, Glowroad, Meesho, OfferUp and many more offer the best reseller business opportunities in India.
If you do not want to step into the manufacturing business, then starting an online resale business in India is a viable option.
4. Easy to Install
You can start selling items from the very day you start an online resale business in India. You just need to make sure that your platform, be it a website, app or social media page, is in place and ready to go!
Once this is done, after posting a ready-to-sale product listing, you start earning and making profits on the same day. Of course, it will depend on the sales of your products.
5. Sell a wide range of products
Sell a wide range of products | How to start online reselling business in India?
You can sell multiple product categories that may or may not be related to each other. The great thing about reselling business is that it doesn't restrict resellers to certain rules. Resellers just need to make sure that the products they are selling are demand-satisfying and of good quality.
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For example, if resellers start online resale business in India with jackets, they can sell shirts, denims, jewelry, handbags, watches, cosmetics, shoes or other products after experiencing some growth in their online business. Can start selling again. Plus, you don't incur any additional costs, so adding products to your inventory is hassle-free as you pay for store-bought goods and sell to customers.
6. Set Your Own Profit Margin
The resale business is all about establishing your margin. You are free to set the price of your goods. However, it is advisable to check the cost of your product on various online platforms and as per industry standards before deciding on the final price of your product.
7. Shipping and Fulfillment Not an Issue
Shipping and Fulfillment No Problem. How to start online reselling business in India?
Like other online businesses, there is no fulfillment or transportation involved. This implies that when you become a product reseller you do not need to send anything to the customer. You should focus on buying products when reselling websites or apps and selling items for a profit.
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The resale business mainly includes the following aspects:
- receiving payment from customer
- place an order online to fulfill it
- keeping the difference
Process to start online resale business in India
1. Finalizing the specifics of the business
Resale is a far-flung business in which you can deal in a wide range of products. Thus, it is imperative to consider certain aspects before starting an online resale business in India.
reseller industry
The first thing to decide is which industry you want to enter when reselling. Although there are no restrictions and you are allowed to deal in any product, it is recommended to maintain uniformity, so that the customer does not find it awkward. For example, if a reseller dealing in electronic goods, such as air conditioners, heaters, fans, lights, etc., then starts reselling other products such as clothing, curtains, bathroom accessories, it will provide customers with a may not look the same.
target audience
Another important factor that should never be overlooked is narrowing down your target audience and focusing more on the people you want to target. Deciding on your target audience will help you determine communication channels, determine pricing, and develop a marketing strategy.
competition analysis
Only after considering external market factors and a thorough understanding of competition and current business practices can one determine your policies. Reselling is a business in which various aspects are evaluated from branding and tone to pricing and a different range of products.
2. Sourcing of Products
Resellers can find the products they want to deal with from 2 types of sources:
a) Local sourcing channel
Some resellers do not opt for online methods. Instead, they try to find their goods locally from their neighborhood and sell it near their area. Typically, this type of business involves higher margins but fewer sales. These channels may vary and may be:
- your whereabouts
- Flea Markets, Central Markets, or Shopping Malls
- friends and family
- retail store clearance
- Goods Auction
- Facebook or Instagram group
b) Reseller Apps
Nowadays, many resellers rely on this method as it is one of the easiest and transparent ways where resellers can source their content. A wide range of apps are available in India. One of the best apps is Meesho, which provides best reseller business opportunities in India.
The reseller selects a catalog they wish to order. Inside the catalog, they choose the product they want to buy and choose its size and quantity. Once this is done, they need to add the delivery address, their name and contact number. The next step is to process the payment and click on Pay Now. congratulation! You've ordered items from Meesho, and you're one step closer to making money.
3. Establishment of a Communication Channel
This is one of the most important areas that will determine how your customers interact with your resale business.
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a) Mini-website
There are many websites available that help in building a free small-scale website. These websites work as e-commerce that offer themes and templates. You can build your website with these platforms without any coding skills. Some of these websites include Wix, Instamojo, Weebly, Yola and many more.
b) blog
Setting up an online reselling platform is made easy by writing and setting up WordPress, Medium, or blogs on personal websites. You can also upload your product pictures, specifications and other valuable details on that blog.
c) Social media platforms
Leveraging social media platforms to make money by operating a resale business is one of the most viable and effective strategies that can be followed. You can display your products on social media channels and receive orders on direct messages.
4. Effective Marketing Strategy
Your resale business will remain incomplete if you do not market your product effectively. It completely depends on the reseller what strategy they adopt to promote their product in the market and increase the sales. Listed below are some of the marketing strategies that are commonly followed by resellers:
- Offer free doorstep delivery
- Providing great discounts and offers in the beginning to gain recognition
- Lower priced products than competitors
- Asking customer reviews, their feedback and testimonials
- Attractive message like 'Hurry up'! Last few pieces left,' or 'Offer is valid until stock runs out.'
- referral discount
- Make effective presentations showcasing your product's features, specifications, benefits and pricing.
5. Setting up Payment Channels
Following all the steps mentioned above will inextricably attract customers, and they will start buying your products. Once you start receiving orders, the last and most important step is to process the payment. As you may come across some issues while setting up a payment channel, such as late payments, sending payment reminders daily, and accepting payments seamlessly.
However, with a seamless payment setup and high-end user interface, payments are easily processed in no time. Some of the best payment partners for online resellers are Razorpay, Mastercard, Netpay International, etc.
5 Best Reseller Business Opportunities in India:
There are many business opportunities available for resale, but out of all, we have listed down the best reseller business opportunities in India after extensive research. We assure you that the list we have put together will meet all your troubleshooting needs:
1. Apparel
The demand for clothing and footwear is increasing in India and all over the world. This is also expected to increase over time in the future. According to an estimated report in 2017, it was estimated that the global apparel market has grown by 5.46 percent as compared to 2016. A similar growth rate was experienced in the subsequent years until 2020. Furthermore, in the coming years, it predicted that the demand for clothing and footwear would be one of the most likely markets all over the world.
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Resale can help you earn substantial money in this area of business. You can sell these products after receiving the product from a distributor or resale app.
The way to do a resale business is that once you reach a good customer base, you can increase the price in demand for the product. You can also change the prices during the festival. For example, the price of ladies suits and saris can be increased during Diwali.
2. Beauty and Wellness
Cosmetics and other beauty products are very profitable to outsource. You have a wide range of options; Lipstick, foundation, nail paint, nail paint remover and more to choose from. You can deal in all types of beauty products, be it skincare, hair products etc. The profit margin on some products is exceptionally high. List those items, and start selling them first.
Obviously, the demand for these products is everlasting among young girls and women of all age groups. So, if you are starting an online resale business in India, consider this resale opportunity to deal with beauty and wellness products.
3. Pet Supplies
Today's life is full of stress and anxiety. This has led to an increase in the demand for pets as it has been proven that pets, especially dogs and cats, can reduce stress, anxiety and depression. It can also reduce loneliness, improve your heart health, and encourage exercise and playfulness.
You can also tie up with a wholesaler or distributor who supplies pet supplies and outsources them to customers. Many people have started doing this reselling business. In addition to selling dogs, cats, fish, and other pets, people have also started working their way into their foods, including chewable treats, calcium bones, dry cat food, fish pellets, etc.
To promote your business, you can tie up with food suppliers and offer good discounts (higher than your competitors) to ensure your business.
4. Vehicle Accessories
This is one of the lucrative business opportunities to start your business. Dealing in all kinds of vehicle accessories including automobile seat covers, an iridescent vehicle leave card, vehicle audio systems, wheel alloys, transmitters, speakerphones, chrome finishing, etc. can help you understand the market. Once you have an idea of which product has the most demand, start paying more attention to that product and keep going.
5. Jewelry
Be it marriage or any occasion, jewelery is always in demand. It depends on your budget, as some people buy artificial wedding jewelry, or some may buy the most precious, but almost everyone wears these items on some occasion. Getting started with this online reselling business in India is the best you can do.
Once you've defined your line and found the startup funding that may be needed if you want to deal with precious jewelry items, finding suppliers is imperative. The next step would be to establish your brand and start marketing.
How can reseller apps help you earn money?
Want to explore the best Reseller business opportunities in India? You can easily start a resale business after downloading the Reseller App. After installing these apps on your device, sign up with them and start buying and selling items for profit.
You must be thinking that what is the need to download these apps? Reseller apps make it easy to check the list of all available products so that resellers can buy and access the best products at an authentic price from companies or online buying and selling websites.
Resale apps will also help you learn with top resale programs and teach you through their tutorials on how to start an online resale business in India. In addition, these apps also build a reseller business model, build reliable and strong customer relationships, and develop a reseller marketing strategy.
- Most Trusted Reseller Apps in India
- Elanic
- EBAY
- olx
- misho
- shop 101
- Poshmark
- Glorod
- Amazon Seller Market Place
- let it go
- mercari
- carousell
- shoplock
- 5 miles
Things to consider before starting an online resale business in India?
- Select a product with less competition
- If you are choosing a product with high competition, keep the price of that product lower than all your competitors.
- Ensure and maintain the quality of products
- Sell high margin products
Which reseller products are most profitable to sell?
Listed below are some low cost products to sell online with high-profit margin in 2021:
- Beauty Products
- TV Accessories
- jewelry
- children's toys
- DVD
- designer sunglasses
- Women's Apparel
- kids formal wear
- Men's accessories including waist belts, pendants, personalized hooks, and more
- halloween costumes and masks
- socks and shoes
- nightwear
- outdoor furniture
- Men's Bow Tie and Pocket Square
- Books
- Bluetooth speaker
Is the business of franchise resellers profitable?
Many successful franchise reseller businesses prove to be very profitable. Let us first understand what exactly is the business of franchise resellers?
It is a privilege and right to use the Company's action plan, brand name, logo and item for a specified time frame. Once the Buyer contributes a specified amount of capital to buy the Company's rights and brand under specific terms and conditions, a mutual agreement needs to be signed by both the parties (Company and Buyer).
The best part about this business is that the chances of being successful in this business model are relatively high as the brand already has loyal customers, and the buyer need not spend substantial money on marketing.
Some of the most successful reseller franchise businesses in India are as follows:
1. Retail Business Franchisee
- Lens Cart Retail Store
- Lakme Business Store
- Khadimso
- First cry apparel and clothing
2. Food & Beverage Ice Cream Franchise
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- Amul Scoop Franchise
- of the wise
- Baskin Robbins
Benefits of resale in a franchise
- The risk involved is low, and the risk is low
- It becomes easier to conduct and manage resale business activities with a systematic action plan
- No advertising and marketing needed
- The supply of goods or materials is based on interest
- Contrast investments with different businesses
The key to success to make money online with a resale business and increase your earning potential entirely depends on how much time you invest and how strong your customer relationship is. Getting more customers and achieving high customer satisfaction is essential for boosting sales. In addition, meeting sales goals will also earn you bonus revenue.
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