A reseller business can be started easily with very little or even no investment. It can be full time or part time but does need diligent planning for success.
Some important points to consider are listed below:
Selection of the Type of Reseller Business
There are many types of reseller business; some require physical space and purchased stock while others are run over the internet with no purchased stock. Reseller can purchase products from suppliers and resell it at a profit; or they can refer customers to suppliers and claim commissions. The selection of the type of reseller business depends upon the product industry, the amount of investment, and the time available for business.
Selection of the Industry
The knowledge of the industry before starting a reseller business is of great importance. It may prove beneficial if the products and their relevant information, manufacturers, vendors, other reseller, terms and pricing is researched prior to embarking upon your business.
Selection of the Supply Market
After finalizing the type of reseller business, the product industry, and product suppliers, the next step is the selection of potential buyers. Important considerations in this regard are the location of intended supply market; advertisement means for promotion of business; the method employed for shipment of goods; cost of shipping; etc.
Research about Competing Reseller
The success of a new business depends upon lesser competition. In order to be profitable and competitive a new business must offer a different strategy from the already established resellers in the market. This can be achieved by price variations, value addition of additional products and services, and better promotional campaigns.
Whether the Reseller Business can Survive
After deciding upon the various aspects of the business it is now imperative to check whether the business is sustainable or not. Estimate the sales revenue by deducting total costs from total sales, this will show the expected profit. Assessment for further capital investment can also be made.
The Starting Phase of the Reseller Business
Once all things are worked out, the reseller business needs to be incorporated as a company. This can be done easily online by paying nominal charges. Next step is to acquire a domain registration and a website. The website can be programmed to receive orders and payments online. Now suppliers can be contacted to order stocks. Products are displayed on the website and the business gets started.