By A reseller is an individual or business that buys products or services from manufacturers, wholesalers, or suppliers and sells them to consumers for a profit. Resellers operate in various industries, including electronics, fashion, software, and e-commerce.
With the rise of dropshipping, affiliate marketing, and online marketplaces, reselling has become a profitable business model for entrepreneurs and small businesses.
- In this article, we’ll explore:
What is a reseller?
Types of resellers
How reselling works
Pros and cons of being a reseller
Best reseller business models and strategies
What Is a Reseller?
Definition of a Reseller
A reseller is a business or individual that purchases products or services from a supplier and sells them at a markup. Unlike manufacturers, resellers do not create their own products—they act as middlemen in the supply chain.
- Buys products in bulk or individually from suppliers.
Sells them through various platforms, such as online stores, marketplaces, or retail stores.
Earns a profit by marking up the price or earning commissions.
Example: A reseller might buy branded sneakers at wholesale prices and sell them on eBay or Amazon at a higher price.
Types of Resellers
Retail Resellers (Brick-and-Mortar & Online Stores)
- Buy products from wholesalers and sell them in physical or online stores.
Examples: Walmart, Best Buy, eBay, Amazon sellers.
Example: A clothing boutique buys fashion items in bulk and resells them to customers at a retail price.
Dropshipping Resellers
- Sell products without holding inventory.
The supplier handles shipping and fulfillment.
Common on platforms like Shopify, AliExpress, and Etsy.
Example: A Shopify store sells phone cases, but the supplier ships directly to the customer.
Wholesale Resellers
- Buy in bulk from manufacturers or distributors and sell to retailers or consumers.
Often operate in B2B (business-to-business) markets.
Example: A business buys 1000 units of electronics at a discount and resells them to small retailers.
Software & Digital Resellers
- Sell digital products like software, domains, and SaaS subscriptions.
Common in tech, cloud services, and hosting companies.
Example: Web hosting resellers buy hosting space in bulk and sell hosting plans under their own brand.
Affiliate Resellers
- Promote products from another company and earn a commission on each sale.
Popular in blogging, YouTube, and influencer marketing.
Example: A blogger reviews tech gadgets and earns commissions from Amazon Affiliate links.
How Reselling Works
Step 1: Choose a Niche
- Select a profitable industry (electronics, fashion, software, etc.).
Step 2: Find a Supplier
- Source products from wholesalers, dropshipping platforms, or manufacturers.
Step 3: Set Up a Selling Platform
- Sell through an e-commerce store (Shopify, WooCommerce, Amazon, eBay, etc.) or a physical shop.
Step 4: Market & Sell the Products
- Use SEO, paid ads, and social media to attract customers.
Step 5: Fulfill Orders & Manage Customer Service
- Handle shipping yourself or use dropshipping/third-party fulfillment.
Pro Tip: Use automated tools like Oberlo (for dropshipping) or Helium 10 (for Amazon FBA sellers) to streamline your business.
Pros & Cons of Being a Reseller
Pros:
- Low startup costs – No need to manufacture products.
Flexible business model – Can be run online or in-store.
Scalability – Easy to expand by adding more products.
No production headaches – Focus only on sales and marketing.
Cons:
- Competition is high – Many resellers sell the same products.
Profit margins may be low – Depending on supplier pricing.
Rely on third-party suppliers – Inventory shortages or delays can affect sales.
Customer service challenges – Especially in dropshipping models.
Pro Tip: To stand out, offer better customer service, competitive pricing, or exclusive deals.
Best Reseller Business Models & Strategies
Dropshipping – Best for low-cost startups
- Sell products without inventory.
Partner with suppliers on AliExpress, Spocket, or SaleHoo.
Example: Print-on-demand resellers sell custom T-shirts without keeping stock.
Amazon FBA Reselling – Best for scaling fast
- Buy products in bulk and let Amazon handle storage & shipping.
Use Fulfilled by Amazon (FBA) for hassle-free logistics.
Example: Many entrepreneurs buy discounted products and resell them at a profit on Amazon.
White Label Reselling – Best for branding your own products
- Buy generic products and rebrand them as your own.
Common in cosmetics, supplements, and tech accessories.
Example: Many skincare brands resell private-label beauty products under their brand name.
Software & Digital Product Reselling – Best for high profit margins
- Resell domain names, web hosting, and software licenses.
No need for physical inventory—100% online business.
Example: GoDaddy resellers buy domain names in bulk and resell them at a profit.
Conclusion
Reselling is a profitable and scalable business model for entrepreneurs looking to enter e-commerce without manufacturing their own products. By choosing the right niche, suppliers, and sales platform, resellers can build successful online and offline businesses.
- Key Takeaways:
A reseller buys products and sells them for a profit.
Dropshipping, Amazon FBA, and digital reselling are trending business models.
Success depends on niche selection, supplier quality, and marketing strategies.
Popular platforms include Amazon, eBay, Shopify, and Facebook Marketplace.
Want to start your own reseller business? Find the best suppliers and start selling today!
FAQs
1. Is being a reseller profitable?
Yes! Profits depend on margins, niche, and marketing strategy.
2. Do I need a business license to be a reseller?
It depends on your location and the type of products sold. Many resellers operate as sole proprietors or LLCs.
3. Where can I find products to resell?
- Wholesale directories (Alibaba, SaleHoo, Worldwide Brands).
Dropshipping suppliers (AliExpress, Spocket, Oberlo).
Local suppliers or bulk discount stores.
4. What’s the best platform for reselling?
Amazon, eBay, Shopify, Etsy, Facebook Marketplace.
5. How do I increase reseller profits?
- Find high-margin products.
Bundle products to increase order value.
Offer exclusive deals or limited-edition products.
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