There’s something incredibly beautiful about reselling—it offers a myriad of avenues, accommodating people at various life stages, with different time commitments, kids of all ages, and space constraints. With so many different reselling types, there are multiple ways to dive in.
So, whether you’re a seasoned reseller, a newbie, or just contemplating taking the plunge, it’s essential to explore the multitude of reselling strategies. Diversification is the name of the game; don’t put all your “eggs in one basket.” Having a repertoire of strategies ensures that you’re not entirely reliant on a single approach.
Joe and I have dabbled in multiple reselling strategies over the years, some yielding great results, while others not so much. However, we don’t regret experimenting with new approaches because, as the saying goes, “You’ll never know if it works unless you try!”
Retail Arbitrage (RA):
Retail Arbitrage, often abbreviated as RA, involves hunting for products in retail stores and reselling them at a higher price, pocketing the profit.
PROS: You’re selling well-known products, so there’s no need to build a brand from scratch. The consumer trust for these established brands already exists. If you are a “couponer”, RA can be an excellent way to profit from your excess stock (provided you’re not buying solely for personal use). Consider looking into Amazon FBA, ensuring strict adherence to their terms of service and avoiding banned items.
CONS: Your success depends on your sourcing skills. Finding profitable items can be challenging, requiring time and patience. Scouring various stores and conducting thorough research are essential for proficiency.
Thrifting
Thrifting involves scouring donation stores, second-hand shops, garage sales, and more, in search of products to resell in used condition on platforms like eBay, after refurbishing them. Of all the reselling types, this is the one I hear of most often.
PROS: It requires minimal investment. Many individuals can turn a modest sum into a profit by sourcing items like clothing, kitchen supplies, and toys from thrift stores. The thrill of the hunt can be quite addictive. Moreover, the profit margins on thrifted items are often substantial, potentially doubling, tripling, or even quadrupling your investment.
CONS: The turnaround time for selling used items can be relatively slow compared to new products. The availability and quality of items vary significantly based on your location. Smaller towns may have fewer donation centers, limiting your chances of finding lucrative deals.
Liquidations
Liquidation involves purchasing items in lots or pallets, typically comprising store returns, overstock, discontinued items, shelf pulls, and more, and then reselling them for a profit. If you’ve followed us for any length of time, you know that this is our favorite of all the reselling types.
PROS: Sourcing becomes convenient as you receive a substantial quantity of products all at once. Most often, these lots and pallets can be shipped directly to your location, eliminating the need to leave your home, thus saving valuable time going out and hunting down products to resell.
CONS: The unpredictability of the items in a pallet can be a drawback. Even manifested pallets (those with a list of contents) don’t guarantee the quality of each item. Some might be broken, damaged, or results of return fraud. As this method gains popularity, competition increases, and prices for lots and pallets trend upwards.
Dropshipping
Dropshipping involves purchasing products directly from manufacturers and shipping them to consumers without ever handling the products physically.
PROS: You avoid handling inventory, making it ideal for those with limited space. All the work is computer-based, so a computer and a decent internet connection are all you need.
CONS: Limited control over the product quality is a downside. Profit margins tend to be lower, and the market is highly competitive. Be aware that dropshipping might violate terms of service on certain platforms, and legal regulations apply.
Wholesale
Wholesaling entails buying items in bulk from manufacturers and reselling them for a profit.
PROS: When done right, and with the right wholesaler at the right price, substantial profits can be made. You can also utilize Amazon FBA for easier order fulfillment.
CONS: Wholesale typically involves lower profit margins. Success often hinges on volume selling—a large quantity of items needs to be moved to generate decent profits.
Have you tried any of these reselling strategies before? What worked for you, and what didn’t? Are there any you’d be willing to experiment with?
If you’re new to reselling, which strategy intrigues you the most?
We’re eager to hear your thoughts and experiences!
As always, happy reselling!
