What is a Reseller? Definition, Benefits, and Tips for Success
What is a Reseller? Want to sell online as a reseller but still confused about the concept? In addition to not having large capital, this system is also more practical because it saves production time. Before you dive right in, read more, from understanding, advantages, to tips!
What is a Reseller?
Resellers are sellers who buy goods from suppliers for resale. As a reseller, you don’t need to do your own production and you can sell these products under the same brand name or with your own brand name, depending on the supplier’s provisions.
Some suppliers do allow their resellers to sell products with their own brand names, but for some items from well-known brands, chances are that these items will sell better when you sell them with their original brand names.
Generally, resellers are required to buy a number of goods from suppliers to get a cheaper price, the more the number of items purchased at one time, the greater the discount given by the supplier.
The cheaper price allows resellers to still sell goods at prices according to standards in the market. If you want to set your own price, it’s also okay, you can increase or decrease the price of goods as part of a marketing strategy.
Difference between Reseller and Dropshipper
One term that is often associated with resellers is dropshipper. Then, what is the difference between reseller and dropshipper?
Basically, a dropshipper can also be said to be a reseller because it does business by reselling goods from suppliers.
A dropshipper is not required to buy and have goods in stock. Dropshippers only market products and become a liaison between buyers and suppliers, delivery of goods to sellers is still managed by the supplier, while resellers take care of shipping themselves.
Unlike resellers who get special prices, dropshippers get the retail price of an item so they have to increase the price of the item to make a profit.
Business Benefits as a Reseller
Want to try a business model like this? Take a look at some of the advantages below!
1. No need for big capital
You don’t need big capital to become a reseller. Now there are many suppliers that do not require resellers to buy products directly in large quantities, as long as transactions are carried out regularly.
You can also apply a pre-order system, so you only order goods after the customer orders from you.
2. More Competitive Prices
As previously mentioned, you can set your own selling price. You can even sell items cheaper than the retail price posted by the supplier. This makes it easier for your store to compete in the market.
3. More Varied Items
You can have more than one supplier and sell goods from various brands.
For example, if you sell skincare, you can create an online beauty shop that provides various types of skin care from various brands. The more choices, of course, the easier it is for customers to shop.
4. Stock Items Clear
When you become a dropshipper, you have to keep updating the stock of goods at the supplier. Incidents such as the product suddenly running out even though the buyer has paid can really happen. This will not happen to resellers because you are the one who manages the stock of goods.
5. Can Create Your Own Catalog and Better Quality Control
This is also the advantage of being a reseller compared to a dropshipper. You can take photos of the available products in your own style to make a better catalog and look more exclusive.
You can also check carefully the condition of the goods before sending them to the buyer. Good quality goods will certainly increase customer confidence in your store.
Tips for Becoming a Successful Reseller
1. Define Product
Do market research before deciding which product to sell. It should be remembered that there is nothing wrong with selling goods that are already widely available in the market because there is a possibility that such goods are indeed what people are looking for.
You just need to do attractive promotions to make sure your store reaches customers.
2. Find a Supplier
This is one of the most crucial things in the business of being a reseller. Make sure you find a supplier with genuine and quality products.
Don’t hesitate to ask the supplier what terms and benefits you can get if you sell their products.
3. Determine Product Prices
You can see the price of the product that you will sell in the market to be used as a benchmark price.
The most important thing is that you calculate the price of capital goods, shipping costs from suppliers to your place, promotion costs, and other operational costs to determine the price of the product you are going to sell.
Even though they do not produce their own goods, branding must still be considered. If you sell products from well-known brands, you can label yourself as an official reseller of these products.
If you use your own brand, don’t forget to strengthen your brand identity by labeling the product or creating unique packaging.
5. Give Good Service
The products you sell may be the same as many products on the market, but if your store service is better, of course, many people will choose to shop at your store.
Not only friendly service, but you also have to provide various conveniences for customers. Some of the ways are by providing various payment methods and providing a choice of several transaction methods, one of which is in the marketplace.
6. Create Your Own Website
This can also be a way to strengthen your brand. In addition to the marketplace and social media, the existence of an online store website can also increase awareness of your products while increasing the credibility of your store.