Your reselling style will be different than mine and everyone else’s. Every day, I receive questions from aspiring pallet flippers and resellers who are eager to achieve success in the liquidation and reselling industry. These questions often revolve around what to buy, where to buy it, and how to make their reselling business flourish. While I’m more than willing to share my knowledge and experience, there’s one challenging aspect—I can’t provide easy, one-size-fits-all answers to these questions.
Why? Because your reselling journey is unique. Although we may both operate in the liquidation and reselling niche, your business will inevitably have its distinct characteristics shaped by various factors. In this article, we’ll explore some of these key factors to help you truly understand your reselling style. Knowing your business intimately will help you make informed decisions which is more valuable than trying to copy and paste someoen else’s success.
Your Business, Your Reselling Style
To understand your reselling style, you must consider a myriad of factors that influence your business model. While this list is by no means exhaustive, it serves as a starting point for reflection. If you’re eager to delve deeper into building your own liquidation reselling business, check out our reseller resources page for more resources.
1. Available Space
One fundamental factor that impacts your reselling style is the amount of space at your disposal. Your available storage space will dictate many aspects of your business, including:
- Inventory size and volume – how big are the items you’re selling? If you’re a small business located in a spare bedroom or garage, you’re going to want to sell items that are small, easy to ship, and fit on a shelf or a box (probably avoid those furniture pallets if you don’t have the room for them!)
- Storage organization and efficiency – how have you organized your space? What items can you fit in your organziational design? If you change your inventory, keep in mind space changes or reorganization is needed.
- Shipping and handling capabilities – are you able to ship larger items? How much does shipping cost from your area?
Before establishing your reselling strategy, assess your space constraints and work within them to optimize your operations. When you want to grow your business, make sure you have not only the space, but the organizational structure to support that inventory.
2. Time Commitment
Another critical consideration is the time you can dedicate to your reselling venture. Your availability will shape your business’s pace, efficiency, and overall strategy. Factors to contemplate include:
- Part-time or full-time commitment – part-time resellers are much more capable of being choosy with the types of items they list. They have significantly more flexibilty because it is not their primary income. Full-time resellers will have the challenge obtain a more diverse inventory because cash flow is essential. Buy, list, sell, repeat.
- Daily or weekly working hours – how much time do you actually have to resell? Most of us have other responsibilities to work with, such as familes and primary jobs. Being realistic on how much time you have will determine exactly how much you can make, and thus, what kind of inventory you might purchase.
- Flexibility in scheduling – do you have a flexible work schedule? Or do you only have certain times that you can work on your business? For those lacking flexibility, you’ll find certain options and solutions unavailable to you.
Understanding your time commitment will help you set realistic goals and expectations for your reselling business.
3. Working Capital
Finances play a significant role in your reselling journey. Your working capital, or the funds available for your business, affects various aspects, such as:
- Initial investment in pallets or merchandise – the more working captial you have, the easier it will be to buy items to resell that carry less risk. Though the margins are generally smaller, people with time constraints or lacking flexibility might benefit the most from these.
- Operating expenses (e.g., shipping costs, supplies) – The less overhead, the more flexibility you have within your business. This can change some of the decisions you make financially for your business.
- Marketing and advertising budget – depending on the amount of working capital you have, some of that may be able to be budgeting to get more eyes on your listings. This will inevitably increase your sales and thus, change your fliexiblity and the way you make decisions for your business.
Recognize the financial resources at your disposal and manage them wisely to ensure your business’s sustainability and growth.
4. Learning and Adaptation
Reselling is not a one-size-fits-all endeavor. It’s a dynamic and evolving field that requires continuous learning and adaptability. No one can provide a guaranteed formula for success, as it depends on your ability to:
- Absorb knowledge and industry insights – reselling is almost entirely ingrained in the realm of reverse logistics which is ultimately dynamic and determined by many economical conditions. This means that it is ever changing. As a business owner, it is up to you to stay up to date with what is happening and be ready when it ultimately trickles down and affects you directly.
- Start small and learn from mistakes – Growing too big or too fast is dangerous. Just because you have capital, time, or space to do something doesn’t necessarily mean that you should.
- Adjust your strategies based on experience – When (not if) you make a decision to do something and it doesn’t work out, what will you do? What is your plan?
Remember that success in reselling is achievable, but it’s not an overnight journey. Embrace the learning process and be prepared to make adjustments along the way.
In the diverse world of reselling styles, there’s no universal answer to questions like “What should I buy?” or “Where should I buy it?” Your reselling journey will be a unique and personalized experience shaped by factors such as available space, time commitment, working capital, and your ability to learn and adapt.
As you embark on your reselling adventure, keep in mind that there are no shortcuts to success. Instead, focus on building a solid foundation, gaining knowledge, and refining your strategies over time. With dedication and perseverance, you can navigate the reselling landscape and create a business that suits your style. You’ve got this!