When you read the title, most people think, “100K?! That’s a LOT.”
And yes, that’s a lofty goal. This goal can be quite large no matter who you are, whether you’re an aspiring reseller, hobby reseller, part time reseller, and EVEN a full timer. And that’s okay, but let’s change your perspective on what 100K looks like….
The key to making the $300/day in sales (or profit) is to become an EXPERT sourcer (not to be confused with sorcerer… which we do not recommend).
But hey, you’re a grown person and you can do what you want.
First, it’s important that we determine the difference between a retailer and a reseller. Although, there are a few main differences, for the purpose of what we’re trying to accomplish, I’m going to define it this way:
A retailer – is a person or group of people who purchase items in bulk from the manufacturer or secondary retailer, and makes a profit from selling those items at a markup to make profit. A majority of the time, you’ll find these items in new or like new condition.
A reseller – is a person or group of people who purchases inventory at low price points (often one item at a time or in lots) and profits in individual transactions. You can find reseller items in all types of conditions, from brand new to salvage.
Now, a majority of resellers are usually also thrifters– that is, people who shop at flea markets, thrift stores, garage sales, etc. to find their inventory. Many other resellers purchase liquidated or return items in large lots or pallets. Still, others conduct retail or online arbitrage, which means they find extremely low cost items for sale that are selling for more on their selling platform.
There is a plethora of ways to resell, but whatever and however you decide to do it, you want to be make sure you source productively and efficiently.
This is when reaching 100K a year is dependent upon being a subject matter expert.
A subject matter expert is a reseller who is extremely knowledgeable and familiar with brands, trends, and resellability of a particular category or niche.
For example, Joe and I are subject matter experts in the category of consumer electronics such as cell phones, GPS systems, and digital cameras. We know which brands sell the best and how fast they sell. We know what time of year is best for this particular category, and we mostly know without having to look online, how much a particular camera or cell phone will sell and how much we can profit of the item. Because of this, we are able to make quick sourcing decisions and are unlikely to make a mistake such as paying too much for an item, listing it incorrectly, using improper shipping methods, or misrepresenting the item somehow.
Becoming a subject matter expert is integral for being able to quickly and efficiently source products, no matter what your sourcing strategy might be.
Okay, now that you know all the basic details that you need to know, the process is actually fairly easy (to explain).
The strategy is simple, but it does require dedication and focus. You can do it, though. I believe in you.
Step 1: Become a subject matter expert in your first category.
Whatever your sourcing strategy is now, DON’T STOP DOING IT. You still need those sales to carry you over, so keep doing what you’ve been doing.
But just add one more skill. Find a category that you enjoy. Perhaps that’s shoes. Or household goods. Or consumer electronics (or maybe not consumer electronics, since we don’t need any competition. kidding. kind of. but hey, do your thing. We’ll support you no matter what).
Whatever that chosen category is, learn it well. Dive in deep to finding price comps. Learn which brands/styles sell the best. Try to find ones with the lowest cost of goods, so you can have a higher return.
Build your knowledge up so well that you rarely have to look up comps, you already know how you’re going to move it and ship it, and you can actually calculate how much you’ll profit on the item before you make the decision to buy it.
Then, make sure you make at LEAST a consistent $100 a day in sales (or profit, if you’re going for 100K in profit instead of revenue).
Let’s say you’re a thrifting reseller and you go into Goodwill. If you’re a subject matter expert in men’s shoes, then you should go in and do your normal sourcing routine, then head over to the men’s shoes, and quickly find the most profitable shoes without a ton of research and time. And, now you’ve got your usual revenue (or profit) coming in from your usual sourcing strategy and hopefully over the course of a few months, you’ve got at least $100 in revenue (or profit) from your chosen category.
Nice. You’re well on your way now.
Step Two: Keep doing what you’re doing, but add another category to learn.
By now, you should have a normal sourcing routine that includes sourcing from your first category that you know all about. You’re making your usual revenue and at least $100 from that category.
Keep doing that.
But now add another category. You want to find a second category that you’re interested in being a subject matter expert in. And work your way up to being an efficent, reliable sourcer for that category. Work your way up to $100 in revenue (or profit) a day.
Step Three: Can you guess? Oh yes. Add a third category.
So now you’re doing your normal sourcing routine.
You’re a subject matter expert in category 1, making $100 a day.
You’re also a expert in category 2, also making $100 a day.
And now you’re an expert in category 3, and it’s making $100 a day.
So now you’re making $300 per day in 3 categories that you are now able to easily source and make good sourcing decisions. You may even find ways to source your items in bulk, online or elsewhere. Maybe you can even, with your expert knowledge, try buying some of your category in liquidation or large lots and pallets so you can spend more time listing instead of sourcing, therefore even further increasing your sales!
The opportunities for growth are endless!
And reaching 100K is NOT unfathomable.
Have any questions?
Let us know! We’re happy to help!