It is natural to have an ebb and flow in your sales as the seasons come and go, especially if you specialize in a particular niche.
However a stagnant business is a dying business. So here are some tips to keep your reselling e-commerce business thriving and growing. Remember, positive cash flow is key to keeping your business healthy!
Most resellers are looking for those high profit margin items. You find this a lot in those who source by thrifting. You can find a pair of jeans for $2 and resell them for $20. There are even collectables, antiques, and other items you can purchase for $5 and sell for $100. It's super exciting! But many times, those items will take a while to sell. Those jeans may sell, but it might take 3-4 months to sell them.
It means that you've got the money, but it's currently sitting on your inventory shelves and not in your pocket.
Only the money in your pocket can be reinvested into growing your business.
While waiting for that great sale, find some items that sell quickly, even if they sell for a lower profit margin.
Finding a digital camera for $5 and making $10 profit on it is not as glamorous, but it's $10 in your pocket that can be reinvested.
It is important in any business to have goals and to keep score when it comes to your business. Without it, you can't measure your progress or identify your weaknesses.
If you've got a goal (whether it's a listing goal, a sales goal, etc), make sure you're sourcing well enough to meet those goals.
Let's say, for example, that you've got a goal of 50 items listed per week. Are you sourcing well enough to find 50 items? If you're in a big city, it might be plausible to spend one or two days sourcing 50 items among the many thrift stores in your area. A reseller with a goal of 50 items in a rural area may have to look to online sourcing to meet the need
Furthermore, a person who has a goal of 50 items has to also have time to list those items in a week. Do you have enough time to source and list all your items to meet your goal?
If you are not meeting your goal, then your strategy (either your sourcing or listing) needs to change, or your goals need to change. Are your goals reasonable? If you do not have adequate time to achieve your goals and you have no more time to give, then adjusting goals may be appropriate.
Many resellers have heard of the dreaded "summer slowdown". A lot of resellers are part of the clothing market and people spend less time shopping for clothes in the summer.
It's important that finding items that sell well during all seasons, especially during the times when your chosen niche can be expected to lull can carry your business through those rough seasons.
Sure, it may not be your favorite items, and it may not be something you have a particular passion for, but if is important to you that your business thrives, this is something that can really help save it from stagnation.
When you purchase items to resell, either in your local area or online, make sure you're thinking about how hard it will be to move those items.
Are you planning on selling locally?
If so, how will you do it? Are you going to post local ads? Where will you have people meet you to sell these items? Do you have a flea market booth or similar?
If you plan to sell online, have you calculated the fees that will come with both listing the item and shipping the item?
Sourcing is KEY when it comes to making your business successful and a lot of thought and consideration should be put into strategically finding the right items that will help you meet your goals.
I hope you found this information helpful and insightful. Please feel free to comment if you have any questions, e-mail me, or check out the forums for information from our reselling community.