There is an entrepreneur within each one of us. Some get going. Others are content with a job. If you do wish to establish a business there are several avenues such as setting up a manufacturing unit or brick and mortar stores or going online. It is far better to sell products that others are manufacturing because you get a jump start and it is better to sell products for which a demand exists such as apparels and consumer goods. So just how do you become a Reseller of products?
A bit of research online will show which products are selling in large numbers. Garments and electronic products top the list so you can enter this segment but garments will prove more profitable than the highly competitive electronic segment. However, this does not mean you should ignore it.
To sell you must have access to people willing to buy. You could open a store and stock it with products but this entails high investment and low returns as well as time for establishment. Besides, you must invest full time, sometimes from 8 AM to 8 PM. There are other better avenues that need less effort. Use digital means. These are some of the recommended paths:
-> SMS: Send out SMS to people in your phone book. Offer attractive rewards for referrals.
-> Social media: Post products you propose to sell on Facebook and invite others to view and buy and participate in referral programs. Do it right and you could get dozens of inquiries in a short time.
-> Email: Create newsletters and keep mailing your acquaintances to keep them engaged. Do not forget to offer rewards.
-> E-commerce site: You could set up an E-commerce site of your own or become a seller on popular online marketplaces of India. However, for this, you need to register as a business and obtain GST as well as other certifications. The returns are high since you have access to millions of buyers across India.
-> Hold exhibition sale: This idea can be implemented once you have generated sufficient income and cash to buy in large lots.
Tie up with a supplier
This is extremely crucial to your plans of becoming a Reseller. Your profitability and reputation rest on the quality and pricing of products. There are several models of tie-ups. You could tie up with a local or national wholesaler and agree to buy a certain quantity and obtain the discount. However, this would entail buying and keeping in stock these products as well as shipping to your clients which would entail additional costs. Your margins reduce and the cost of the product goes up. It is better to look for other options.
Find a supplier who will ship products directly to your buyer, even individual units. Adopt this drop ship method and you avoid double shipping costs, double taxation, maintenance of inventory and investment in products. You just take orders and pass them on for execution. You get high profits.