Whether you’re looking to declutter your home, start a side hustle that gives your budget some extra breathing room, or simply like the thrill of finding vintage pieces a second home, reselling online is a great option. 

You can be your boss and work from your home while raking in some nice profits.

And, someday, reselling may even push aside your 9-5 to claim the title of being your full-time job. 

If you want to get there, though, a list-it-and-forget-it strategy isn’t going to cut it; you need a solid plan and an actual roadmap. And that’s exactly what we’re going to explore here.

Dive in to learn how to start reselling and actually convert it into a long-term business. 

Key takeaways:

• Reselling, i.e. buying products for cheap and selling it to other customers for a higher price, can be profitable as long as you do it right.

• The key to success is picking a niche where profitability and your personal interests overlap. Choose the right platform(s) for the niche you pick to make yourselves visible to your target customers.

• Take care of the logistics, such as dealing with compliance, finding reliable suppliers, figuring out fulfillment, and so on.

• Invest in a cross listing tool like Crosslist to sell on multiple marketplaces and scale your reselling business faster.

First things first: What is reselling?

Reselling is when you buy products from other sellers, businesses, thrift stores, or consumers and sell themfor a higher price.

A reseller essentially acts as the middleman between the initial sellers and the final buyers.

When reselling, you have the option to sell the items as is, or repair/ customize it to fetch a higher price.

However, buying raw materials and creating products from scratch does not count as reselling.

How to start reselling in 11 steps

A step-by-step, comprehensive guide to start and grow your reselling business.

#1 Decide what item(s) you want to sell

Aka pick a niche. The niche you should pick should satisfy two conditions: a) you should be interested and/or be an expert in it.

This is the only way your reselling business won’t feel like a chore that you need to psych yourself up to do.

Knowing your niche also helps you find the best opportunities to stand out.

And b) it should have a high demand, because, to sell something, you need people who are willing to buy it (more on this below).

But, why do you even need a niche? Picking a niche or industry is how you can build expertise and trust.

When you focus your efforts on a single market, you get to know the ins-and-outs of it, learn what potential buyers are looking for, and how you can best serve them. 

In short, you become one of the go-to people for vintage thrift finds or refurbished electronics, which gives you a better chance of success. It makes marketing yourself easier, too. 

Now, on to the “how” part of this section.

Just how do you settle on a niche? Start by listing out the things that you’re passionate about. If your list is long, choose the top 5 and rank them according to your interest level. 

For example, if you like gardening, you could set up an e-commerce business reselling gardening tools, plants and seeds, and gardening tips.

If music gives you joy, you can hunt for old vinyl records and sell them for a tidy profit. 

If your initial reselling plan is to declutter your closet, your shoe rack, or your binder of trading cards, then deciding your niche is pretty much a done job for you.

Read about the top 11 reselling ideas for beginners.

#2 Understand the market (and your audience)

No matter how passionate you are about your niche, you won’t have any success unless there’s market demand.

So, you need to analyze whether the niche(s) you’ve picked out are viable. 

To gauge market interest, you should:

• Track buyer interest in the product over time by using a tool like Google Trends. This will show you whether people’s interest in the niche and products you’ve picked are rising or waning. If you’re planning on selling a seasonal item, you can also see which months are the hottest for your products

• Use platform-specific tools (such as Poshmark or Etsy research tools) to analyze the real-world sales data of your selected products. A high sales volume indicates strong buyer interest

• Scope out a few competitors using the same platform-specific research tools and analyze their sales history, performance, and price trends. Note down what the most successful ones are doing differently as this will show you where people are putting their money and why

Once you confirm the viability of your niche, it’s time to get to know your target audience: who they are, what they want out of your products, and where they hang out. 

If you’re reselling sustainable or upcycled items, your target audience would be eco-conscious buyers.

If your niche is antique furniture, your potential buyers would be collectors. 

After you come up with this buyer persona, think about what they would want out of your products.

You can read product reviews from your competitors to see which aspects their buyers highlight the most or search on social media to listen in on the conversations happening around your niche.

Customers of luxury handbags might look for an authentication certificate or other proof that your items really are branded, while buyers of electronic items might be more interested in the specs of the product. 

💡 Expert tip: Since you have a personal interest in the niche yourself, look inwards for this question. What features/ benefits would you expect from a seller if you were the customer?

The final part of this equation is finding out where your customers hang out so that you can set up a virtual storefront there. Hop on to the next section for the tea on that.

#3 Pick the platform(s) you’re going to sell on

Your niche is decided, and you have a good idea of how to attract your customers. The next step is deciding where the magic happens.

Obviously, you need to pick the marketplaces that get a lot of traffic from your target audience. 

While a few reseller platforms are designed to accommodate pretty much any product, there are a few that are niche-specific.

Here’s a brief overview of what the top-selling platforms are known for:

• eBay: All items, particularly auction-style items, sneakers, and electronics

• Etsy: Handcrafted and vintage one-of-a-kind goods

• Poshmark: Fashion and accessories

• Vestiaire Collective: Luxury fashion, bags, accessories

• Whatnot: Toys and collectibles

• Depop: Gen Z streetwear and casual wear

• Facebook Marketplace: All items, especially furniture, second-hand, and bulky items

• Mercari: All items

• Vinted: All items, especially clothing and accessories

• Grailed: All types of clothes, shoes, and accessories

• Amazon: All items

Pick the reselling platforms that fit your niche the best. The platform-specific research tools we talked about above can help you check how your products will fare.

You can also create your own storefront on Shopify or WooCommerce for greater control.

💡 Expert tip: We recommend selling on a minimum of 2-3 platforms to really maximize your visibility and broaden your horizons.

In fact, multi-channel selling can increase your revenue by 143%!

But, of course, you can’t spend your entire day listing the same products on multiple platforms, which is why you need to..

Invest in a cross listing app

Cross listing apps like Crosslist reduce the friction from your multi-channel listing strategy and help you save 10+ hours each week.

Crosslist helps you create a single listing and cross list it everywhere simultaneously (on 11+ platforms at once).

Get a comprehensive breakdown of how Crosslist can help your multi-channel reselling strategy.

You reap the benefits of selling across multiple platforms while putting in the effort of selling on one. 

Sign up for Crosslist and achieve a 143% growth in revenue while only spending a fraction of your time on listing. You can try it risk-free now.

#4 Settle on a reselling business model

A reselling business model basically boils down to how you’re going to source your products.

There are quite a few options available, so we’ll give you the basics of each model.

• Wholesale: Buying products in bulk from a wholesale dealer for a budget-friendly price and selling it for a high profit. Best for high-volume sellers.

• Retail arbitrage: Buying products from retail stores at a discount (when items are on clearance or during liquidation) and reselling them. Best for those who want easily-accessible and sellable products.

• Private labeling: Buying generic products from other sellers and adding your logo and branding to them before reselling them. Best for those who want to add their own unique touches to the products.

You can also source products from:

• Thrift stores

• Garage, yard, and estate sales

• Liquidators

• Products returned in pallets

Pick the type of resale business model that makes the most sense for you. You should be able to source the products easily and be able to sell them for a decent profit. 

#5 Find reliable suppliers

After you choose the reselling model that fits you the best, you need to find reliable suppliers to source your products from.

You can attend trade shows and expos and chat up the wholesale dealers there, use websites like Alibaba, or check out online directories for recommendations on suppliers, thrift stores, and liquidators. 

Another option is networking with other resellers and asking if they have any recommendations.

Shortlist a few suppliers and start vetting them.

Request product samples to test the quality, check their response times and willingness to answer questions before you start working together, and read reviews from past customers (if available).

Some other details to hash out include:

• What’s their minimum order quantity (MOQ) if they have one?

• Do they have a return policy? How do they deal with goods arriving damaged or getting lost in transit?

• Do they have a warranty for their products?

• How do the payment terms work?

As you work with the same suppliers over time, you may be able to revisit pricing and get a better deal. The key to doing this is building a strong relationship with your suppliers.

Pay on time, communicate quickly, and be polite and professional!

#6 Take care of the legal compliance of starting a reselling business

Before you panic, reselling is legal, but you’ll need to get a resale permit and pay sales tax. Registering as a formal business (either an LLC or a corporation), though, is optional. 

Here’s what you need to resell in the US:

• Sales tax license: This is state-specific, and permits you to collect and remit internet sales tax from your customers. Most reseller platforms typically take care of collecting sales tax for you, but you may still need a sales tax license. (In many states, you also have to report the sales even if the platforms remit the sales tax for you). Keep in mind that a sales tax certificate is valid only for that particular state, so if you buy or sell across states, you may need a permit for each state.

• Resale certificate: This is also state-specific, and lets you buy goods in bulk without paying a sales tax as long as you intend to resell all the items. You need to apply for a resale certificate (aka a reseller permit) through your state’s revenue department. You need to show this certificate to your suppliers when you purchase from them. If you buy and sell from more than one state, you’ll need a valid permit for each state.

The laws and regulations may vary across each state (and country, if you live outside the US), so it’s always best to research how the law works for your area.

To make things easier, consider consulting an accountant.

#7 Choose a fulfillment method

As a reseller, you’re responsible for packing and shipping your orders in a timely manner.

You also need to track your packages and have insurance policies in place on the off-chance that your items get damaged or lost in transit.

Here are your options:

• Marketplace fulfillment: Some marketplaces, like Amazon, take care of the shipping themselves. The process is completely hands-off for you. 

• Self-fulfillment: You’re responsible for the entire process. You get full control, but the downside is that it’s a lot of work. However, most platforms (such as Poshmark) work with certain carriers to create prepaid shipping labels for you. You’ll just have to pack, print and attach the label, and drop your package off at the shipping carrier’s warehouse (or schedule a pick-up). The shipping label also automatically tracks your packages for you, which reduces your workload. 

• Third-party fulfillment (3PL): You outsource the entire fulfillment process to a third-party. They take care of the packing, shipping, and tracking, and will even process returns for you. Most 3PL providers also have warehouses for you to store your products. 

If you’re on a budget, or like having full control over the fulfillment process, the self-fulfillment method might be your best bet.

But, if you frequently ship out large volumes of orders, it might be worth it to invest in a 3PL.

#8 Price your products

We’ve finally arrived at one of the most important parts of starting a reselling business: pricing your products. You need to price yourself in a way that’s both competitive and profitable.

For example, if all of your competitors are pricing their products within the $70-$80 range, but you price it at $100, you’re not going to have a lot of takers (unlike your items have a value addition that justifies the higher cost). 

Additionally, your selling price should cover all of your initial purchase costs and then some. In other words, you should make some profit from them. 

So, the first step to determining how to price your products is calculating all of your costs. Here are the types of costs you’re most likely to incur:

• Product purchase costs

• Marketplace and payment processing fees

• Shipping costs (unless the buyer pays for shipping), including packaging materials, label printer, etc.

• Reselling tools costs (Crosslist’s plans start at $29.99/month)

• Storage and warehousing costs (if you rent one)

• Marketing expenses

• Labor costs (if you customize or alter the products)

Add up all of your expenses and calculate an estimated breakdown for each product. To make a profit, your selling price should be higher than the number you get.

But, how higher?

This depends largely on market trends. Use Google Analytics or marketplace-specific product research tools to see how much similar products are selling for.

This will give you an idea of how to price your products.

💡 Expert tip: Crosslist’s AI add-on has a price suggestion feature that really comes in handy.

Simply upload your product photos, and our AI tool will scour the entire internet and return with optimal pricing suggestions for your items.

No more spending hours on market research, or wondering if you’ve under- or over-priced yourself.

If you’re adding your own unique touches to the products, though, you have free rein on the pricing. You don’t have to strictly keep up with market trends.

But, your product description and photos should make it very clear as to why your product is worth the price. 

#9 Set up your virtual storefronts

If you didn’t already create accounts on your chosen marketplaces in step #3, now is the time to get to that. 

First, pick a store name: something that’s unique, but also simple and memorable. Like BabyBluesClothes or VintageBySarah.

This name should be consistent across all of your virtual storefronts. This is how you create a recognizable brand.

While you’re at it, go ahead and create an email as well as social media platforms with the same store name. 

Next up, fill out the following information:

• The “about me” section: This lets potential buyers know who you are, where you’re from, and what your story is. If you’re doing something different when compared to other resellers in your niche, mention that here!

• The store policy section: How long will it take for you to ship the products? What’s your returns and refunds policy? What type of payment methods do you offer? If you offer any customizations, how do they work? Include all of this information to make it easier for potential customers.

• FAQs: What common questions are your buyers likely to have about purchasing from you? Answer these in a separate section so that potential customers don’t have to keep DM-ing you with the same questions again and again.

Once this is done, set up the other things on your accounts, such as your shipping address, payment methods, and so on. 

#10 List your first products!

It’s time for the fun to really begin. Officially launch your store by listing your first set of products!

If you’re using a tool like Crosslist, your work will get that much easier.

You can simply create one listing for each product, connect all the marketplaces you created a profile on, and cross list to all of them at once. 

To save even more time, you can let Crosslist’s AI tool generate the entire description for you within seconds!

Some things to keep in mind about listing your products:

• Take high-quality photos highlighting each detail of your product. Use Crosslist’s AI image editor to enhance your product images and make them professional-grade in seconds

• Write a detailed and attractive product description — one that sells the benefits of the product rather than just the features

• Don’t forget to add relevant product tags and categories

• Make sure the product sizes and conditions are accurate. You don’t want angry customers returning your items because they didn’t fit

Congratulations! You’ve officially started a reselling business. 🥳 Now all you need to do is let people know about it. Easy, right?

#11 Market yourself

You can’t make a sale unless your potential customers know you exist.

While platforms do help with this, you need to use the right niche-specific keywords in your title, product description, and tags to boost your discoverability. 

If you’re selling candles, your keywords might include “scented candles” or “beeswax candles” depending on your product variation.

Pepper in these words within your descriptions. This will make you visible to people searching for these keywords. 

You can also market yourself by:

• Running paid ads

• Posting about your products on social media

• Asking loved ones to share the word about your store

It may take time for your reselling business to take off, but if you stay consistent and put in the work, you will get there. 

Common beginner mistakes to avoid when starting a reselling business

• Going all in on your reselling business without researching the market and your audience first

• Buying too many products at once without a proper plan in place. This can lead to dead stock

• Not investing in the necessary tools (like a cross listing app or a product research tool). When you try to do everything yourself, you’re only going to burn out and waste precious time that could have gone into building a business strategy instead

• Pricing yourself too high or too low

• Not taking marketplace fees and other costs into account when pricing your products

• Putting up bad quality listings (i.e. listings with 320p photos and inaccurate descriptions)

• Not diversifying. In other words, sticking to one platform

Crosslist makes reselling across platforms easier

The statistics are clear: reselling on two or more platforms can increase your revenue by 143%.

And using a cross listing tool like Crosslist for your multi-channel reselling business can save you 10+ hours of time every. single. week.

If that’s not enough to convince you, get this:

Crosslist also helps you generate listings within seconds using AI, gives you pricing suggestions, helps you manage your inventory in one place, and autodelists your listings from other platforms once you sell something (preventing double-selling). 

And this is just the beginning. Once you start using the tool, you'll find so many more intuitive features that make your life easier. 

Invest in Crosslist now. You can thank us later. [Try Crosslist risk-free]

Reselling FAQs

Answers to the most pressing questions about starting a reselling business.

Is reselling worth it?

Yes, reselling is absolutely worth it as long as you do your research, pick the right niche, and consistently put in your efforts. 

Which platforms can I use to resell?

You can use pretty much any marketplace such as eBay, Etsy, Whatnot, Poshmark, etc. to resell.

You can also create your own storefronts with Shopify or WooCommerce if you want greater control. 

Where can I source products to resell?

You can source products from clearance racks on stores, wholesale suppliers, liquidators, thrift stores, and garage and estate sales.

Do I need to register a business to resell?

No, you do not need to register a business to resell (although you can do so if you wish to).

You do, however, need to get a sales tax license and a resale permit for each US state you operate in.