Home Internet The Height of E-commerce: Starting an Online Reselling Company

The Height of E-commerce: Starting an Online Reselling Company

by Yolando B. Adams

The pandemic has changed the way businesses work today, and that change is both a blessing and a curse to the world. Unfortunately, many brick-and-mortar businesses have permanently closed due to the pandemic, severely damaging our economy. However, it has also pushed us to move businesses into a much efficient space: the internet.


Digital businesses have grown tremendously during the past year. Currently, one of the best digital businesses right now is centered on online reselling. If you didn’t know, revenue for online retail increased to $296 billion in 2020. This is a 38% increase from 2019’s sales. Moreover, it’s estimated to grow much more prominent this year, as more people get used to the new consumer environment. So how do you become a part of this growing business model? Here are some essentials when starting an online reselling company.

Finding Your Niche

Online reselling is all about finding your niche and being comfortable in it. It doesn’t matter if your niche is oversaturated or not because there is still a huge chance that someone will buy from you. What matters is that you have decent knowledge about your target market and that you enjoy selling in it.

If you don’t know your company’s niche yet, there are many choices to choose from. Currently, the best categories in Amazon are toys and gaming, electronic accessories and camera accessories, books, and clothing. Try doing some research on these various categories and look into new and upcoming niches in these markets. You can usually find something worth reselling by doing this.

Using the Right Delivery Service

The world of online reselling is all about convenience, which means delivering products on time with minimal cost. If you want your online reselling company to succeed, you’re going to need a good courier service. This particular service can be attained in various ways, with each having its strengths and weaknesses.

Relying on an E-commerce Website

We recommend this option if this is your first time becoming an online reseller. Many e-commerce websites such as Amazon and Shopify offer various delivery services for your products. However, these services aren’t the most optimized, and because they are not entirely dedicated to your company, you might have to wait for weeks before they can deliver your product.

Hiring a Third Party

Hiring a third-party delivery company will ensure that your products will be delivered on time. But it is more costly in the long run as they start to increase their fees depending on the location and the type of product you are selling.

Starting Your Department

Starting your delivery department is very costly at the start. However, it will quickly pay for itself for years to come. This will also give you the freedom to control your delivery schedules and have no service charge for each delivery. This is something we recommend if you have money to spend for your company.

Considering the Overhead Costs

The overhead costs of starting an online reselling company vary from $0 to $100,000. This depends entirely on how you will procure your products and how you will pay the manufacturer.

Many online resellers start their companies with very little money because most take a loan to purchase the products they will sell from the manufacturer. This can be quite risky because you’re left with nothing if you can’t pay for the loan or if your business fails. But when it succeeds, you can easily cycle the money in your company to purchase your products indefinitely. It is also the fastest way to jump-start your company.

The other option is to put your own money on the line while making zero loans. This can be a much safer option for some since you don’t have to worry about debtors taking the products you purchase. However, the main problem here is when your products aren’t selling as fast. This leaves you stagnant when it comes to growth and at the mercy of the market. But at least you have your products no matter what.

Offering Various Products

Lastly, variety is the name of the game in online reselling. You’re going to need to sell multiple products in your niche, enough to saturate the given market. It would be best if you were offering competitive prices on them as well. This should be your main goal as an online reseller because it will be your means of success.

Online reselling is a growing market, and with more and more people transferring to digital platforms when it comes to their needs, revenues will soar high by the end of the year.

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