How to make money reselling goods in 2021
Until now, everyone is interested in the question of how to make money on the resale of goods. After all, resale as a stable way of earning was relevant at all times. This realm changes with time and environmental conditions.
For example, in the Middle Ages, resale represented the Great Silk Road, camel caravans, wealthy merchants, makeshift shops and markets in cities. The relevance of the trading business lost ground only during the Soviet Union. But since the 1990s, trade, in particular the resale of goods, has been reborn as a sustainable form of commercial activity.
We will talk about this in this article.
How to make money reselling goods lately
Today’s realities set new rules for trading. The development of technology has opened up limitless opportunities for trade. If logistics issues are resolved in a particular region, then residents can trade almost all over the world. And the events of recent years, in particular the pandemic associated with COVID-19, gave a powerful impetus to the development of online trading.
In August 2020, the RBC Market Research marketing agency conducted a study. It was attended by about 150 representatives of the business sector. The survey revealed that 51% of many companies see their future development in close connection with online trading.
The development of online trading is closely dependent on the development of the logistics sector. Due to the fact that demand has migrated from reality to the online sphere, 94% of logistics companies have modernized their services in one way or another. All these facts indicate that ideal conditions have come for starting a trading business.
Making money from reselling can be a temporary way to make money or can grow into a solid business over time. To achieve this level, it is necessary to increase turnover and improve existing sales channels. Next, we will consider all the nuances of this case.
Resale of goods as a way to earn money
Earnings on a simple resale on the Internet can bring a stable income with an upward trend. This way of earning is available to everyone. And the benefits are as follows:
- does not require special skills and knowledge;
- you can start with a minimum amount;
- minimal risks – within the investment;
- lack of legal burden, since the responsibility for the quality of goods is not the seller, but the manufacturer;
- freedom of choice – margins are determined independently;
- range of goods for sale;
- availability of tools for promotion: popular trading platforms, social networks, forums, etc.;
- demand stability;
- cashless sales facilitate settlement.
For objectivity, it is worth noting the disadvantage of this type of business. It will take time and perseverance if there is a desire to develop a business. You need to spend time regularly tracking the range of products, selecting new suppliers, developing sales channels and establishing trusting relationships with customers.
Earnings on resale is the basis of classic types of business. There are two methods of this method:
- direct sale;
- product improvement.
For the first method, it is important to find the minimum prices among all possible offers. The minimum prices are provided by the manufacturer. The second option assumes that the purchased product will be improved in one way or another.
The first method is used by 70% of entrepreneurs who are interested in the question of how to make money on the resale of goods. International trading platforms like Aliexpress in China, eBay and Alibaba in Europe, Avito and Yula have contributed to the development of this direction.
Novice traders should choose popular commodity items, select images, write descriptions, think over price wrapping and display them on local sites. In the case of an order, there is no need to even redeem this product. An application for delivery should be made to the data of the final buyer and receive the earned funds. This method helps to earn on the resale of goods in the range of 10-40 thousand 🪙 per month without investing your own funds.
This method is risky. The risks lie in the fact that in case of problems with delivery, the intermediary will not be able to solve anything. If the manufacturer or other buyer on the international trading platform turns out to be dishonest, then the consequences will be sad: earnings will be lost, and the buyer may leave negative feedback.
A more reliable way is to pre-purchase on the same sites and then resell. Liquid items can be bought at bargain prices on eBay, Amazon, or Etsy. In addition, stock models of world clothing brands can be found on these sites. Their prices are symbolic. Only by buying out such models and reselling them on other sites, you can count on a profit of 30 to 200 thousand per month. True, personal perseverance and a successful selection of goods are needed.
One of the well-established trading systems with online platforms is dropshipping. This system is very similar to the above method. Only dropshippers are more likely to choose wholesale. This is a great option for those who are looking for a way to make money on reselling without investment.
They select the most popular items, write a description, promote these products, take orders and transfer them to manufacturers or sellers on the above-mentioned sites. And the payment is taken to your account. Payment will be delayed by the system until the end user receives their order and clicks on the appropriate button on the order page. Only after that the funds are credited to the seller’s balance. Given this feature, we can say that manufacturers are also interested in the delivery of goods without failures.
According to the analysis of experts, dropshipping is a type of trade with a fairly high margin. It is at least 25-30%.
Resale of real estate
Another way to resell with high profitability is through real estate transactions. But in order not to spend too much time looking for a buyer, you need to be able to find the right market and the right time. In short, the following principles apply in the real estate market:
- You can earn in a developed or emerging market. These markets are in high demand. The transaction cycle is short – from several weeks to 2-3 months.
- Do not rely only on the value of the object. As the practice of brokers and realtors shows, the buyer is ready to pay not only for square meters, but also for the area that he likes. It is at this price that property owners in prestigious areas can afford to charge any price. If the area is not listed, then even if the object is very cheap, there will be little money to be made on the resale of such real estate. The best option is good prices in quoted areas of your city.
- In order to earn money, you can not invest in improving the interior of real estate. The interior is a matter of taste. Someone’s designer renovation may seem like bad taste to another. Each buyer is set to equip a new home in his own way. Unsolicited repairs increase the value of the property, and there is no guarantee that the buyer will like it.
- Consider the season. December and January are considered a period of silence in the real estate market. This is especially true if mortgage lending is developed in your city. At this time, banks switch to the preparation of annual reports and suspend the issuance of loans. Consequently, mortgage transactions are also delayed until the end of January or even February. No less quiet period is the time of summer holidays. People usually travel around and leave housing issues for the fall.
Real estate transactions have many legal nuances. For example, a cession or the conclusion of an exclusive agreement with the owner. Housing can be from the developer or from the owner. All these nuances require detailed study.
Another option for a profitable real estate transaction is the purchase of objects from open auctions. Open auctions are held by banks or bailiffs. In fact, this is the property of those who mortgaged it to the bank, bought it with a mortgage and failed to make payments. The Bank sells such properties at the official appraisal price to cover its loan costs.
Classification of goods according to Western rules
In the Western world, goods are conventionally divided into two types: hard and soft. This classification comes from the literal characteristics of goods. Solid goods are:
- gadgets and electronics;
- sport equipment;
- household goods, etc.
Soft goods include clothes, bedding, home knitwear, etc. Most solid goods are sold in packaging. In order to optimize the transportation process and reduce costs, many retailers are moving away from individual packaging and handle this issue on their own. This possibility must be taken into account if you intend to order goods from the manufacturer in large volumes. In this case, a separate order of packages in your city can end up being cheaper.
There is another practical meaning from such a classification. The presence of both hard and soft goods can only be allowed by large offline and online markets. If your business is at the start-up stage or intends to specialize in a narrow environment, then you just need to choose one type of product and sell only it.
What products are in demand?
Each country has its own demand for certain goods. Therefore, some independent work should be done in this direction. Below is a list of products that are in demand in all countries of the world. To resell such goods, intermediaries do not have to deploy large-scale marketing strategies. They are known all over the world and most of them fit perfectly into modern trends.
The most powerful trend of our time is a healthy lifestyle. And after 2020, this phenomenon has grown from a trend into an urgent need. Almost everyone monitors body weight: young, mature, men and women. Smart scales show not only body weight, but also the percentage of bone muscles, fat and other health parameters.
Children’s 3D printer
A rather expensive product, since the cost of one model reaches tens of thousands. These devices help kids print their favorite toy in 3D. We recommend accepting orders from buyers and redeeming them with their money as a safe option.
Smart USB speakers
Smart speakers are wireless devices that can be useful in small household chores. For example, they can synchronize with a mobile phone alarm clock, they can communicate with Alice and Siri. There are many well-known brands available on the market.
Almost a win-win business option. Portable chargers are in demand in the following category:
- the rest of the population.
The devices charge not only mobile phones, but also tablets or e-books. It is advisable to supply models with maximum power. They justify their cost by helping to charge devices not once, but several times.
Robot vacuum cleaner
This device saves housewives from cleaning. Models are available that can do wet cleaning, with noise and silent. With proper marketing, the robot vacuum cleaner will become a bestseller.
Mobile phone accessories
Everything that has to do with mobile devices is selling very well in the modern world. For example, this:
- GoPro cameras;
- selfie sticks;
- covers for different models;
- protective films on the display;
- spare parts: displays, USB-modems, headsets;
- chargers, etc..
To be in the trend of popular mobile gadgets, you need to constantly monitor the latest.
Over the past 4 years, Koreans have decided to conquer the beauty industry market and they are doing it well. Online stores of Korean cosmetics are opening in Europe and Asia. Eye patches, hair care products, beauty boxes and herbal oils are in high demand.
Socks are a common gift for loved ones. Original models are in demand. Socks with atypical patterns, prints and inscriptions on Aliexpress can be bought literally for a penny. There are options for 10-15 🪙 for a couple. If you find such options, then the margin on them can be in the hundreds of percent.
There are many coffee lovers in the world. And coffee is not only a drink, it is a ritual. Therefore, his fans love to have a coffee break according to the rules: grind grains in a coffee grinder, brew in a coffee maker or Turk. Coffee machines help prepare other drinks at home. They are bought as a gift for loved ones. More often take for personal use.
The modern world is obsessed with eco-friendly products. To earn on them, it is enough to buy an alternative to some ordinary thing. Here’s what’s relevant today:
- Cloth bags instead of plastic bags. Such bags are reusable, cost about 100 🪙 in bulk. They are called shoppers.
- Keepcup – reusable portable tableware instead of plastic cups and other products for resale in your city.
Handmade is bought both for a gift and for personal use. Soft toys, bags, jewelry, paintings and handmade interior items are in demand. But they can also be purchased in bulk at international sites. Because it will be much cheaper than retail.
Automatic air humidifiers are not only a tribute to fashion, but also a useful thing for health. Both standard and original models, combined with the interior of the room, are in demand. Advanced models have additional alarm or lamp functions.
Sports goods are in demand out of season:
- fitness gum;
- yoga mats;
- fitness kits;
- water bottles;
- fitness bracelets, etc..
A rapidly growing business is based on sports goods.
The assortment should be expanded with seasonal goods. How to earn fast on reselling on the Internet? Here are some options:
- Sale of stationery;
- Beach bags, swimwear, caps, pareos, air mattresses and pools – for the summer;
- In autumn, demand appears for:
- thermal underwear;
- blankets with a heating pad;
- warm socks;
- original pillows, etc.
- In winter they will often buy:
- ski equipment;
- down jackets;
- insulated shoes;
- bed linen, etc.
- In the spring there will be a demand for garden tools and flower seeds.
Another way to expand the range of products is holiday products. But on international trading floors, they appear quite early. For example, 1-2.5 months before a particular holiday. Because everything is done so that the sellers have time to order and redeem the goods.
But despite the abundance of goods, office workers feel the lack of original personalized gifts. This issue is activated before the holidays. To resell a batch of goods, we recommend opening a new line – gifts with corporate design.
For example, you buy 30 pieces of portable chargers. Order stickers in your city with an original design or with the design of a particular company. But if you are confident in your abilities, you can immediately offer the company to buy out the entire batch. The issue of corporate gifts is acute before every holiday in every office. Because it will be a great solution for them.
In the future, this can be put on stream, the design can be coordinated and entire companies can be provided with branded souvenirs. But you can think ahead. Because in this case, you will not waste time and immediately move on to action.
How to determine the price of a product?
Before setting prices, you need to ask what customs fees are due, and what price comes with delivery. Usually these figures are immediately indicated in large online sites.
A margin of 25-30% is considered optimal. But depending on the wholesale price and the level of demand, this figure may be higher. If you have to invest in advertising and marketing, then you need to calculate the cost of one customer – in marketing this is called CAC – CustomerAcquisitionCost and is calculated using a special formula. Find this ratio and include it in the cost of the goods so that the business pays for itself.
Where to buy goods in bulk?
The leader in wholesale sales is the eBay platform. The resource has a clean reputation. Since 2014, critical opinions have been expressed about the platform. However, on this site you can find products from world brands. Users face difficulty in the search engine and in the eBay interface, which is only available in English. But it doesn’t matter. The following resources are in no way inferior:
- Aliexpress, etc.
Each of these platforms has its pros and cons, which you will have to master as a regular player. For example, special training courses are sold on Amazon for trading. Training in courses helps to better understand the product category, select the right positions and increase resale profits.
Where to sell goods?
This is a decisive business factor, but in practice the system is well established. To start a business, you need to regularly set aside time and work on promoting your page on social networks.
And potential buyers will find the following:
- Page on Instagram. Instagram has become a platform for the sale of various products, ranging from overseas real estate to cosmetics. To start selling, start a page, connect a business profile and post the assortment, not forgetting the hashtags.
- Online store – requires minimal investment, which will be spent on the development of an electronic platform. The downside for beginners is the need to promote from scratch. This takes time and money. From this point of view, Instagram wins.
- Boutique or shop. If you have money, we recommend buying out liquid positions and selling in your city, immediately having cash;
- Application point. For example, Wildberries pickup points work like this. Goods are posted on a single site, the rest of the sellers accept applications and earn on the difference in price.
At the initial stage of trading, online trading is beneficial. It does not require a warehouse or special conditions for the storage of goods.
The world has gradually moved to a virtual trading zone. And this format suits everyone. Because if desired, every willing and persistent person can discover a new source of income. Retail trade as a way of earning money replaces hired work. But no one guarantees a positive result and spasmodic growth. Every business goes through a stage of finding its own way. Resale of goods is no exception.