Maybe a friend is making extra cash selling clothes they no longer wear online, and you also want to try your hand. Or perhaps, you’re an entrepreneur looking for a winning, scalable startup idea.
Online retail could be the answer. In these ecommerce models, you sell items you already have or ones that you can source affordably and sell them virtually at a markup. But where to start?
Here, explore popular online reselling business ideas and find one that fits your interests, budget, and bandwidth.
What is a reselling business?
An online reselling business is a model in which retailers sell items to consumers on an ecommerce site.
Generally, business owners purchase the products from a wholesaler or manufacturer in bulk at a low price and mark them up to generate a profit margin on each sale. Others buy garage-sale or other second-hand items from individuals and act as a middleman, selling these items on their ecommerce site.
This business model is popular with entrepreneurs seeking to make extra money off of a side hustle or create a full-time job for themselves as a retailer.
3 key types of online resale models
Online reselling generally comes in three forms:
The first is the general reselling model, in which a business owner buys goods from a third party and then sells those items at a markup in their online store.
Another method is retail arbitrage, in which the reseller purchases all their products from a single vendor, often taking advantage of low prices on clearance and liquidation items. They may then resell those products on their site or third-party online marketplaces, like Amazon or eBay.
Finally, there’s the dropshipping method. Here, retailers list items on their ecommerce site but only source them from the supplier when a consumer orders. This supplier, known as a dropshipper, then sends the purchased items directly to the consumer’s door.
Profitable online reselling business ideas: How to make money as a reseller
Considering becoming a retailer? Finding the right niche market is critical to success. Here are a few tried-and-true reselling business ideas.
Low-start-up ideas
Low-start-up ideas are those that you don’t need much business expertise or cash-on-hand to launch. You also won’t necessarily have to partner with a supplier or buy in bulk. Instead, you can find items to resell on social media (like Facebook Marketplace), at estate sales, flea markets, and at thrift stores. All you need to do is curate high-quality items and market them well, and you don’t even need your own website to do so. You can quickly get your start on eBay, Etsy, or Poshmark selling:
1. Used books
- First edition finds: A solid pick if you enjoy hunting for rare or out of print books that collectors actively search for.
- Textbook flips: Buy textbooks during the slow season, then resell them when students start scrambling for required reading.
- Themed book bundles: Group similar titles into curated sets that appeal to niche buyers looking for convenient picks.
2. Vintage clothing
- Retro denim picks: High quality vintage denim moves fast, especially when you find recognizable brands and classic cuts.
- Band tee flips: Authentic band tees always draw interest from fans who love nostalgia and unique designs.
- Y2K apparel: Early 2000s fashion still trends hard, making these thrifted pieces easy to resell at a markup.
3. Collectibles
- Vintage toys: Old toys in good condition attract collectors who are willing to pay a premium for nostalgia.
- Trading cards: Sports and gaming card markets stay active, giving you strong resale potential with the right finds.
- Antique decor: Small antique decor items are simple to source and consistently sell to buyers with eclectic taste.
4. Accessories
- Thrifted scarves: Unique scarves are easy to ship, easy to style, and often fetch quick sales.
- Costume jewelry: Colorful or statement jewelry pieces sell well when you bundle them into themed sets.
- Vintage belts: Quality belts, especially leather or branded ones, keep steady demand from fashion focused shoppers.
Medium investment ideas
These mid-range ideas are best for retailers who can pay more upfront to save on bulk buys and who have the storage space to warehouse items. In this model, sellers choose high-demand resale items that will sell out quickly, generating a profit that can be split between income and business expenses, like the next round of bulk purchases. Common in-demand items include:
1. Phone accessories
- Phone case packs: Bulk case sets move quickly since people change styles often and always need protection.
- Screen protectors: Multi pack protectors are a reliable seller because they need frequent replacing.
- Portable chargers: Power banks stay in demand year round, making them a simple and predictable resale item.
2. Wholesale home goods
- Kitchen tools: Affordable kitchen gadgets are easy impulse buys and perform well in online marketplaces.
- Bathroom sets: Coordinated sets help shoppers refresh their space without spending much.
- Seasonal decor: Holiday and seasonal decor sells fast when you list items ahead of peak demand.
3. Beauty accessories
- Brush sets: Makeup brush kits remain a steady seller for both beginners and beauty enthusiasts.
- Acrylic organizers: Clear organizers appeal to shoppers who want tidy, aesthetic storage for their products.
- Hair tools: Curlers and unique styling tools hold demand thanks to constant beauty trends.
4. Pet supplies
- Grooming kits: Pet owners love bundled grooming tools that make at home care easier.
- Pet toys: Toys resell well because buyers replace them often and pets go through them quickly.
- Travel gear: Carriers and harnesses are solid picks for shoppers who love getting out with their pets.
5. Small electronics
- Bluetooth speakers: Compact speakers offer a good mix of affordability and broad appeal.
- Wired earbuds: Simple earbuds remain a staple buy for students, commuters, and travelers.
- LED strips: Lighting strips sell well thanks to gaming, decorating, and TikTok driven trends.
Higher-trust or niche ideas
High-trust ideas are not always best for beginners, as they require establishing rapport with your audience and a certain amount of customer loyalty before you can take off. Plus, you need to secure the resources to purchase expensive, niche items and reliably vet their authenticity. But assuming this effort and risk can imply high profits. Reseller opportunities in this space include valuable items like:
1. Jewelry
- Gold plated sets: These offer a premium look on a budget, making them great for everyday wear buyers.
- Gemstone pendants: Small gemstone pieces make easy gifts and attract shoppers who love unique details.
- Silver rings: Minimalist silver rings stay in style and resell well year round.
2. Refurbished electronics
- Refurbished phones: Clean, tested phones offer great value to buyers who want reliable tech without new device pricing.
- Refurbished laptops: Upgraded, refurbished laptops appeal to students and remote workers on a budget.
- Restored consoles: Vintage or refurbished gaming consoles attract nostalgic buyers and collectors.
3. Designer handbags
- Premium totes: High quality totes from known brands hold their value and attract consistent interest.
- Vintage crossbodies: Older crossbody styles often age well and stay popular with fashion focused buyers.
- Mini bags: Trendy mini bags are small, stylish, and often resell for impressive margins.
4. Limited edition sneakers
- Drop releases: Limited releases are a strong flip for anyone ready to buy fast and list early.
- Retro pairs: Classic sneakers always have demand from both collectors and everyday shoppers.
- Collab sneakers: Collaboration pairs bring in hype driven buyers willing to pay more for rarity.
How to choose the right idea for your resale business
Create a successful reselling business plan by considering the following four key points.
- Demand: Determine your target audience and what types of items appeal to them. Perform research on market trends in your niche before sourcing products to sell. You want to ensure there’s sufficient demand for your items.
- Sourcing: Find the right suppliers to keep your ecommerce business afloat. These may be wholesale distributors, white-label manufacturers, second-hand shops, or dropshippers. In this stage, it’s essential to consider your budget and warehousing capacity, as both will dictate how much you can buy. Many suppliers have minimum order quantities (MOQs) or only offer special pricing over a certain item number.
- Margins: Consider the cost of goods sold (COGs) and your desired markup, ensuring that your projected pricing would be competitive. Be sure to consider your total cost, which includes any overhead (like warehousing or website hosting fees), as you must make sure your profits will cover your operational costs. Generally, online businesses enjoy low-cost operational fees, which helps you boost profitability.
- Complexity: Retail operations can become complex, so it’s important to choose a model that aligns with your budget and bandwidth. A small business may not wish to take on lots of stock of a wide range of products at first, before they have better data on what will sell and more cash flow.
You’ll also want to consider infrastructural and operational needs. Do you need office space? An SEO consultant? Will you offer warranties on your items? Does your state require you to get a business licence before you resell products? These are all essential concerns to research before launching your business.
How WholesaleCentral helps resellers find reliable suppliers
WholesaleCentral is the ideal platform for connecting with verified wholesalers and dropshippers selling high-quality items in trending categories like apparel, accessories, tools, and home goods at competitive prices.
You can quickly and confidently partner with trusted suppliers and ramp up your online resale business. Achieve long-term success by only working with the best distributors in the industry.
FAQs
What products are most profitable to resell online?
Quality beauty and skin care products, vintage items, home goods, pet supplies, and trending apparel are among the best-selling online resale items.
Where can I source inventory for my reselling business?
Source quality inventory on WholesaleCentral, a platform connecting retailers with vetted suppliers offering a wide range of popular products.
Do I need a business license to start reselling?
Many states will require a business license for full-fledged online retail operations. But if you’re reselling clothing or accessories on sites like Poshmark, you won’t need one.
What are common mistakes beginners make when reselling?
Common mistakes include pricing items incorrectly (too low or high prices), poor inventory management (like holding too much stock), not researching the needs of your target audience, and underestimating your time and budgetary possibilities.