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Who is a Reseller?
A reseller is a person or an entity, that purchases products from manufacturers, liquidators, or other retailers, and sells them to their own customers. This is a logical definition of a reseller.
How Would a Reseller Look in a Hosting Business
One does not need to have any product development, manufacturing, or any fulfillment, to become a reseller.
Reselling is a form of dropshopping where companies source products and materials from various suppliers and make them available to consumers, all at one place.
This way, the consumers will have to just look at one place for a variety of products and service.
Resellers often add some value-add to the products, in terms of customer experience. At times, buying directly from the supplier is not easy and the experience could turn out to be sour.
A reseller can guide a prospective customer to the right place, with the right tools and sometimes also negotiate out a suitable financial deal.
Resellers would also be able to sell in singular units, as the purpose of the supplier in terms of bulk quantity can be fulfilled by the reseller.
5 Basic Advantages of Being a Reseller
There are number of benefits for a reseller business. Here are a few to address being a reseller –
1. Launch the business sooner
There is no need to wait for inventory to begin. One can set up and launch the reseller business, the moment you get your presence on the web, with the website.
2. Carry no inventory for the reseller business
There is no need to carry inventory. Products can be sourced from drop shopping companies, who allow one to resell without having to purchase inventory.
Pay for the goods, as customer orders from the website. There would still be profit made, even after not holding on to any inventory.
3. Resell an extensive range of products as a reseller business
One can offer even supporting products to the main product on the reseller website. It helps the customer, to find the supporting products all in one place.
4. Lower the financial risk of running the reseller business
With the financial cost being low, it is a perfect business for entrepreneurs who are conscious of their budgets.
Shipping fees are marginal, and so are the costs of the inventory.
5. The reseller can set their own margins
Choose have the price of the product based on whatever margin one decides. Higher the price, more profit one can make.
How Can One Become a Reseller?
- Register a reseller business. Get a license for the place where the business is intended to run. Apply your license from MyGOV Business license.
- Check the state laws that speak about the reseller business or the products that are planned for. Medicines for example, will fall under a different regulatory for the online business.
- In some cases, one should get a reseller license or permit.
- The sales tax laws vary by state, with each state levying its own sales tax rate. Some states also require a reseller to collect local sales tax, which must be sent separately from the statewide sales tax. This needs to be checked for the area where the business is targeted for.
Whether the reseller business is new or seasoned, there are many things one can do to boost exposure, increase revenue, and grow the reseller business.
1. Always have goals and identify the business model
Identify goals that are very specific – like what would be the yearly goal for profit? What would be the scale of employees over the year?
The goals can be short-term or long-term, something like for six months, or for a year.
Focus on profit and a way to maintain the organization as per the guidelines of the governing body for the reseller.
2. Broaden the areas of products from where we are sourcing them
– to keep fresh and desirable inventory.
Get creative with the sourcing models. Add more goods as support to the main good that is targeted to be sold.
3. Research the market and analyze the competition in the market
Understand the nature of the business, the existing customers and the prospects that are available.
It is important to know what customers are looking out for.
While everything sells, it would always be profitable to target the goods that are in trend and in demand.
4. Enhance the quality of the listings on the reseller site
Focus on quality over quantity
Adding photographs of the goods, will make the site more popular and will help the customers decide on what they really are looking out for and how it matches with their expectations.
5. Focus on Search Engine Optimization for the reseller site
to advertise and tell the search engines, and the people searching them, for the goods that are on sale on the reseller site.
Using the right keywords, characteristics of the goods on the reseller site, will really help the pages to be ranked higher on the search engines.
6. Expand presence of the reseller website, across global markets
– more the reach, means more visitors. More visitors could mean more people looking at the offerings on the reseller site and would generate more prospective customers.
7. Keep it consistent and full of energy
– Reseller of goods that you are more passionate about, will keep one connected to the site, consistently and also showcase the energy level that one would have for the offerings on the reseller site.
8. Network and build the brand
– this is of course, over a period of time and would really mean to increase the business and the reach of the products that are on the reseller site.
Reserve your presence on social media and reserving a domain name, that is more relevant to the nature of products on your reseller website, will really help attract the right customers to the website.
Exabytes Malaysia offers a variety of products and services which can be a winning reseller product.
For more details on the products and to become a reseller, please visit us our reseller partner page.
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