How  to Make Profit Through Reselling in 2019

How to Make Profit Through Reselling in 2019

Business, especially trading, is interesting. Apparently, there is no upward limit to how much you can sell. It depends on your talent and also to some extent on the product you choose to sell and the markets where you sell. You could just as well end up suffering a loss. How to make a profit through reselling requires some thought. Consider these.

Plan and Manage

You need to plan on what to sell, where to sell, whom to sell to and how much you can sell through your efforts to even arrive at a decent sum you can make. The profit is not the difference between purchase price and sale price. You have to factor in various associated costs such as taxes you pay, cost of the time you spend, commission you may pay, shipping costs, returns and others to know just how much you will make. Then you can plan a proper sales price above the cost price of the product you buy. Then again you have to consider that you cannot fix a higher price than the competition otherwise you will not sell even one item.

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Right Category and Product

Popular products that sell in high volumes will also mean that margins are slim and it would be tough for you to expect a buyer to prefer you over others. If you price a product lower than the competition you could end up making nothing or even suffer a loss. Pick a product category with care. It should be in demand. It should not have price limits and there should be adequate margin you can add. Apparels and accessories in the fashion market are just right. Besides, there is always a demand and you can offer a unique range not found elsewhere and thus charge a premium.

Avoid unnecessary Promotional Expenses

Sellers may have grand visions of hundreds of buyers in a day if they advertise in newspapers or on TV or distribute leaflets or hold exhibitions. It does not work as expected. Costs are high and you may not achieve sufficient volume sales to show a profit above the costs you have incurred. The right way to go about making a profit without incurring costs is to use social channels, WhatsApp and other channels to promote your product and draw in other people to help in the promotion in return for a reward. Your costs are minimal. You can sell at a lower price and still make a profit through reselling.

Right Supplier

This is the most important thing if you wish to make a profit. You may find a seller who offers handsome discounts. However, you have to invest, buy, stock and then ship, all of which entail costs that slice down profits. Take a shortcut and find a supplier who will not ask you to stock any product. You just place an order on him and he will ships directly to the buyer. Even if the margin is low you still make a profit because you do not have to spend on stocks, on space and on shipment.

Author: Prajakta

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