One of the most important success factors as a reseller, besides finding suitable reselling products, is certainly liquidity. Logical, because if you see a good offer, but you can’t take it because there is no money available, you might miss out on a good profit. Basically, there are two ways how you can increase your liquidity:
1. Resell goods faster
The goal should always be to sell the goods as soon as possible (Note: For some goods, it may of course be worthwhile to store them in order to benefit from increases in value. This is a concern, for example, Lego Investments). So you try to reduce your so-called “capital commitment”. That is: The time between the purchase and sale of the goods should be as short as possible. This way you can use the money you make from the sales to buy new goods faster.
The fact that you want to “resell the goods as soon as possible” is intuitively logical, but of course not always easy in theory. Sometimes demand collapses for a short time, the products are generally less in demand, or you want to store the product because you expect increases in value.
2. Pay with a credit card or on account
Attention, note the higher risk
Buying products on account, or with a credit, always carries a risk, because you may not be able to pay the bill in the future. However, many stores give you the option to return the product free of charge within 30 days (or even longer, but at least 14 days). So if you can’t sell the product, you just send it back and don’t have to pay the bill. This reduces the risk to a minimum.
For example, you buy a heavily discounted TV for 500$ because you think you can resell it for 800$. As a payment method, you choose “on account”. You have to pay the 500$ in 30 days. If you were right and you sell the TV for 800$ on the 15th day, you can simply pay the invoice 15 days later. If you are wrong and the TV is a slow seller, you just send it back and don’t have to pay the invoice.
Use a credit card and benefit twice
For advanced resellers who want to increase their liquidity, we recommend a credit card. This way you can purchase goods and only have to pay for them 30 days later. Ideally, by then you will have already resold the goods at a profit. This way, you will have more capital at your disposal for a long time, which you can use to generate profits. In addition to a credit card, it is equally important to have an appropriate account. In our business account comparison, you will find the account that best suits your needs.
Best of all, with Amazon’s Visa credit card, you can get up to 2% cash back on purchases! If you buy as a Prime member on Amazon, you get even 3% cashback. You can simply use this cashback for purchases on Amazon. This way you can increase your profit even more. Here you can get more information about the Amazon Visa Card.
