Reselling is an interesting business. Your sole task is to sell products made by someone else. If you become reseller for a large company you need not even bother about advertising and marketing. They take care of it. However, when you buy products from distributors or the company itself you do have to make payment to them. You may be selling on an ecommerce marketplace in which case they will indicate their preferred methods of receiving payments.
- This is one of the most popular and widely used methods to make payments by resellers to their suppliers. It is fast and money shows up in the recipient’s account in less than a day.
- If you are in India and use NEFT then you will first need to get the payee approved. This takes a day. However, after that, transferring payment is a straightforward process.
One would think that making payment by bank check or demand draft is outmoded in these days of digital payments but some old fashioned businesses still stick to it. If your supplier is happy with a check, pay order or bank draft then you can do it.
If you have joined an online marketplace then you have to naturally follow their payments policy. They may set up an automatic ECS system that deducts money from your account and credits their account on defined dates each week or each month.
Payment wallets and other methods
This is the age of digital and, if you have bought products from a supplier’s ecommerce site you could be offered various methods of payment such as Paypal or Google checkout.
Payment wallets are also becoming popular. If your supplier agrees to it you can use one or the other form of payment wallet to transfer money to his account. It is fast and easy through a dedicated app.
Credit card payment for merchants can be a good thing depending on how you look at it. For instance, if you choose to make payment by credit card you do not need to have that much money in your account. You can make payment. Supplier gets money. You get a credit period of about 30 days and make payment according to the credit card billing cycle. You may pay interest. However, you enjoy a brief credit facility that you can use to sell the product, earn a profit and pay the bank the credit card bill amount.
It is best to limit yourself to only a few methods of payment from the accounting perspective. For example, if you choose to stick only with bank transfers then you get a bank statement that will show all payments you have made in one statement. That makes it easier for accounting and reduces chances of omission or overlooking payment made through other methods.
When you make payment online you will also incur bank charges or charges levied by payment processor, a factor to consider.
Making an online payment in reselling is easy and the benefits of making online reselling is that you can easily pay the amount of your customers via yourself. So you need not have to worry about the online payment as their are many option available in reselling business to make an online payment.