WHO WANTS TO BE A RESELLER?
Reseller business could be quite simple and a lot cheaper to set up. There are many types of reseller business. While some reseller businesses require a physical premise and stock, you could run a reseller business from home with minimal or no stock over the internet which requires a very small investment.
You can set up a successful reseller business quickly and easily as a full time business or part time to earn some extra income. Here we talk about the steps involved in starting a reseller business and how we can help you.
Choosing the right type of reseller business
There are many types of resellers but basically, a reseller resells the products and good of another company. So before you set up your reseller business, you must decide on the type of reseller business that is right for you. You may either purchase stock from suppliers for wholesale price and resell with a profit margin on top or simply refer sales to the wholesaler for commissions. Both routes can be equally rewarding financially.
Choosing the industry
Once you have decided to become a reseller, the next step would be to choose the industry you want to enter. Although, it is not essential to possess thorough knowledge of the industry, understanding and knowing the products and manufacturers might be valuable in setting up your reseller business. Therefore, it would be beneficial to research the industry, manufacturers, suppliers, product information, competition, etc, before embarking on the reseller business.
Identify your customers
After you have chosen the type of business, researched the industry and products you want to sell, the next step would be to identify the target customers and market. You need to consider your target customer’s demography and their location. It would be wise to work out who and how will the products be marketed and shipped to your customers.
Check out the competition
Before you set up your reseller business, research the market for competition. If the market is saturated or there is huge competition, you might face challenges in selling your products and making decent profit. It might be prudent to check out the competitors price for similar products and if you can add adequate profit margin to the product cost. In addition to price, researching competition will help you to differentiate your products in the market.
Now that you have decided on the type of reseller business you want to set up, researched the manufacturers and wholesaler, got quotes from different suppliers, identified your target customers and markets, it is time to calculate the pricing for your products to analyse if the business will be sustainable. Work out your potential profit by deducting your total costs from estimated sales revenue. Be prudent and compare different scenarios to identity potential problems you might face and if they are surmountable.
Becoming a reseller
When you are ready to set up your reseller business, the first step would be to register your business. Registering your business with HMRC can be done quickly and easily online and is very cheap. Whether you decide to sell from home or online or a physical premise, having a domain and a website could be very beneficial. Setting up and running a website is quite simple and cheap too. You also have the options of choosing free websites or using Facebook page for selling your products.
At AKS-ARP, we offer two types of reselling services. You could buy our products at wholesale rates and resell them or use our affiliate service to refer sales for a commission. You can find more details of our affiliate service here. We have been in the business for more than 30 years and can provide you bespoke business support at every step.
Why not book an informal session with us? We could discuss where you are now as a business, where you want to be and how we could work together.