Learn How To Become a Reseller And Start Selling Right Away

You don’t need a revolutionary new product idea to sell online. In fact, you don’t even have to manufacture your products to start your own ecommerce business.

Various business models put product development and manufacturing in the hands of others—and profits into yours. One of these models is the growing resale business model.

The global secondhand apparel market is expected to grow at a compound annual growth rate (CAGR) of 10%, reaching $367 billion by 2029. While clothing dominates the resell market in the United States, sustainability-conscious shoppers increasingly seek secondhand accessories, furniture, and household appliances. This shift toward circular commerce makes reselling an attractive business model for entrepreneurs who want to tap into growing consumer demand for sustainable shopping options.

Becoming a reseller is a great way to launch a small business and start selling online. Read on to learn how to become a reseller, and get tips and ideas for running a successful reseller online shop.

Pros of reselling	Cons of reselling
Can avoid minimum purchase quantities	Sourcing can be time-consuming, especially for rare items
Can create curated experiences	No marquee product that is reliably your bestseller
Can purchase tax-free goods	Competitive market
No need to develop or manufacture items	Managing inventory can be tricky

What is a reseller?

A reseller purchases products from manufacturers, liquidators, individual consumers, and other retailers and then sells them. A reseller business permit—also known as a resale license, resale certificate, or tax exemption certificate—allows resellers to purchase certain items free of sales tax, including:

• Items to sell at wholesale

• Items to sell at retail

• Ingredients or components to manufacture and sell things

Buying directly from a manufacturer or supplier often requires minimum purchase quantities. Reselling, on the other hand, can be more flexible. You can source from wholesalers or track down individual pieces to sell—eliminating the need to purchase a large stock.

Many resellers also provide a value-add for the customer by delivering more curated experiences. For example, Resurrection, a vintage clothing store, organizes clothes by decade, material, and country of origin.

Resellers can focus on selling items individually to customers (at a markup, especially for rare pieces), as well as create a branded customer experience. Those elements may be as simple as in-depth product descriptions and reviews, a customer loyalty program, and customer support.

Reselling is also a viable business pursuit for people who like and have success with marketing. If you can plan and execute effective marketing strategies, your reselling business is more likely to achieve success.

Product reselling is great for someone who has specific expertise or knowledge of an industry or demographic. For example, someone who knows a lot about vintage apparel could create a reselling business around vintage concert t-shirts.

Resale vs. dropshipping

• Product development and manufacturing
• Order quantities
• Inventory
• Shipping

While reselling and dropshipping share similarities, they operate as fundamentally different business models. Reselling involves purchasing products (new or used) and selling them again—you physically handle inventory, whether it’s dead stock from retailers or vintage finds from estate sales. Dropshipping eliminates inventory handling entirely: you sell products that suppliers ship directly to customers.

Here’s how they compare:

Product development and manufacturing

With both reselling and dropshipping, you don’t develop or manufacture products. Instead, you sell existing products from suppliers.

Order quantities

Resellers may face order quantity minimums when purchasing items from a manufacturer. However, you can avoid this by sourcing individual items at thrift stores. Dropshipping typically doesn’t require any order quantity minimums.

Inventory

Inventory can be tricky with reselling since items may take time to sell and resale shops often need to refresh inventory to keep their stores appealing to customers. Dropshippers don’t hold any inventory.

Shipping

Resellers have multiple shipping options. They can work with third-party logistics providers to handle shipping or ship products themselves. Dropshippers never touch the products—suppliers handle all shipping once a customer places an order.

How to become a reseller

1. Find a niche
2. Register your business
3. Get a resale permit
4. Write a business plan
5. Build your website
6. Choose your fulfillment method

1. Find your niche

Finding your niche will help you make decisions about other parts of your business, including how you source items and your price range. Follow these steps to decide on a niche:

Interests and expertise

Being interested or familiar with a specific niche can be a boon to your business. For example, if you are knowledgeable about photography equipment, you can provide your customers with tailored recommendations.

Make a list of your interests and expertise and aim for several ideas, so you have backup options.

Market research

Research your ideas to see if there is interest. Look at market reports to learn about market demand, opportunities, and estimated growth rates. Use Google Trends to gauge interest over time and whether it’s a seasonal item (like bathing suits). Looking at your competition can also help you find gaps in the market, giving you a way to stand out.

Validate your niche

Once you commit to an idea, you must validate it. Start by interviewing potential customers or launching a social media account in your niche to test if you can build an audience.

2. Register your business

Start by determining your business structure, such as an LLC. Research the pros and cons of each business type. Consider connecting with a lawyer, who can help you find the right structure for you.

Next, check state laws and regulations to learn whether you need a business license where your business operates. To operate in US states outside of where you register your business, you may need a foreign qualification.

Once you know what you need to register and submit your application, prep all the necessary documentation for your reseller business.

3. Get a resale permit

Many states accept out-of-state reseller’s permits to avoid paying sales tax on resale items. However, some won’t honor out-of-state permits. Research state law before buying across state lines, both for in-person and online sales.

File for a reseller business permit in each state where you buy and sell goods. You’ll likely need to pay associated fees.

Sales tax laws vary by state, and each state has its own sales tax rates. Some states also collect local sales taxes, too. According to the Tax Foundation, 45 states and the District of Columbia collect statewide sales taxes, and 38 states collect local sales taxes. Check with your local jurisdiction for specific requirements.

In the United States, a business with a reseller permit doesn’t pay sales tax on the products it purchases for sale. However, the reseller must collect sales tax from its customers and send it to the state.

Like a business license, you need a resale permit wherever your resale business operates. So if you incorporate in Florida but have an online store, shipping location, or factory in Delaware, you’ll need a Delaware reseller’s permit. If you buy and sell goods in multiple states, you’ll need a valid permit in each.

4. Write a business plan

Your business plan serves as a guide for running your business. It includes the following elements:

• Company description. Outline your business model, big-picture vision, goals, structure, mission, and value proposition.

• Market research. Provide insights into the strength, opportunities, size, and competition of your chosen market.

• Products and services. Describe your offerings, including how you’ll price your products.

• Financial plan. A financial plan includes possible funding sources, projected revenue, and expected operating expenses.

5. Build your website

A well-planned website delivers a positive customer experience. One of the easiest ways to build a website for your resale business is with a no-code, drag-and-drop website builder like Shopify. You can also connect your Shopify website to different apps to enhance functionality. Consider these elements when building your website:

• Load time. Does your site load quickly across devices?

• Website navigation. Are your menus easy to navigate?

• Accessibility. Does your store meet the latest website accessibility standards?

• Journey mapping. Does clicking a link or button take the user to the right place?

• Responsive design. Does your website work well on all devices, including mobile and tablet?

• Copywriting. Do your words effectively convey information and represent your brand?

6. Choose a fulfillment method

Picking, packing, and shipping online orders is crucial for running a successful business. This involves managing inventory and delivery logistics. You can choose to self-fulfill. An ecommerce platform like Shopify has built-in tools that make shipping straightforward and accessible, enabling you to track orders and handle returns and exchanges.

Another fulfillment option is using a third-party service, which eliminates the need to store, pack, and ship your own products. Typically, you send orders directly to the fulfillment partner, who handles everything. Use the Shopify Fulfillment Network app to connect to trusted third-party fulfillment partners.

How to find suppliers for your resale business

To find a supplier for your resale business, start by identifying what types of products you want to sell and what kinds of customers you want to sell them to.

Some resellers work with large suppliers and manufacturers, while others, like antiques dealers or vintage collectors, mostly buy and sell from individuals.

To search for reseller business suppliers, you can browse online directories, do a Google search, or ask for referrals from within your network. Ecommerce sellers can also integrate product sourcing apps into their online stores.

Using a product sourcing app, you can access a variety of products across numerous categories, such as electronics, toys, and cosmetics.

4 reseller business ideas

1. Sneaker business
2. Vintage boutique
3. Consignment
4. Subscription box

Reselling opens the doors to numerous business opportunities, since you don’t have to invest in product development and manufacturing. These qualities also make reselling a great home business or side hustle, which you eventually can turn into a full-time job.

Here are four ideas to get you started with a reselling business:

1. Sneaker business

Shoes offer resellers a wide range of niches—from athletic shoes to stylish heels to trendy sneakers and everything in between. People always need shoes, and you can keep things fresh by featuring seasonal designs. There’s ample opportunity to resell shoes and make a tidy profit doing so.

New Jersey–based Packer Shoes started as a small neighborhood custom shoe shop. The company has grown since its humble beginnings in 1907, largely thanks to its omnichannel approach. Now, in addition to reselling sneakers from household name brands like Adidas, Packer Shoes offers its own designs as well.

2. Vintage boutique

The used goods resale industry is huge: In the US alone, there are more than 20,000 stores that sell used goods with a combined annual revenue of $15 billion. A vintage boutique is a great way to take advantage of this reselling business opportunity.

When sourcing vintage goods for your reseller business, you can go by the traditional definition of goods that are older than 20 years and younger than 100, or you can take inspiration from vintage trends. Online clothing store COAL N TERRY’s vintage collection features t-shirts, jackets, and sweaters styled in contemporary ways.

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You can resell vintage clothing, antique furniture, or any knick-knacks you can find at garage sales, yard sales, thrift stores, or donation centers. The key to a successful vintage reselling business is to learn what items people look for, and the price points they’re willing to pay. For example, vintage Corningware is in high demand for a niche market of customers.

3. Consignment

If an online business selling vintage goods sounds appealing, consider taking this idea to the next level by opening a consignment shop. Consignment shops sell upscale or luxury used goods, and not everything is antique or vintage—some items are newer.

Love that Bag etc operates an online consignment shop selling high-quality, gently used designer bags. On TikTok, the company shares its authentication process:

If you plan to resell luxury goods, consider how you will authenticate items.

4. Subscription box

Brands like ButcherBox and Birchbox championed the subscription box, which remains a viable option for resellers looking to establish a more predictable revenue stream. You can curate an assortment of goods and package them into a single box.

To start a subscription business, first determine your target market and then look for goods that fit their wants and needs. You can assemble the goods in themed boxes and launch a new one each week, month, quarter, or whatever cadence works for your business model.

Tips for success as an online reseller

Running a successful resale business requires more than just finding products to sell. Here are key strategies to help you thrive:

1. Consider your profit margin
2. Request samples
3. Feature high-quality photos
4. Build trust through transparency
5. Master inventory turnover
6. Leverage social proof

Consider your profit margin

Pricing your products can be challenging with resale products, especially rare or one-of-a-kind items. Using a tool like Shopify’s profit margin calculator can help you price your products. The calculator accounts for what you paid for the item, your ideal markup, and other costs like shipping and customer acquisition to help you arrive at a profitable number.

Request samples

If you’re working with a wholesale supplier, ask for samples so you can ensure the items are in good condition and of good quality. Even though you’re not making the products yourself, you’ll still be responsible for their quality and returns management.

Feature high-quality photos

Photos are important to any online shop, but especially to resellers who might be selling used or vintage clothing. Your product photos, along with your descriptions, should be an accurate representation of your products. You want to ensure that customers understand any flaws with a product before they make a purchase.

Build trust through transparency

When selling secondhand or vintage items, transparency builds customer loyalty. Clearly describe any wear, defects, or unique characteristics in your product listings. Consider creating a grading system for item conditions and stick to it consistently across your inventory.

Master inventory turnover

Successful resellers understand that inventory sitting on shelves costs money. Track how long items take to sell and adjust your sourcing strategy accordingly. Consider marking down items that haven’t sold within a specific time frame to keep your inventory fresh and cash flow healthy.

Leverage social proof

Encourage customer reviews and showcase them prominently on your website. For high-value items, consider including certificates of authenticity or detailed provenance information. Share customer testimonials and unboxing videos on social media to build credibility.