What is reselling anyway?
The term reseller translates as a reseller. This basically describes what this lucrative reselling side job is all about. You buy goods or services at a low price in order to resell them as profitably as possible.
At first glance, this sounds quite simple. However, it is very important to first think about a suitable strategy for your project before you start reselling as a side job. Which goods or services can be purchased where and then brought back to the customer? Which reselling niche is best suited? There are models of buying and selling that procure only limited goods that are very difficult to obtain on the market. Other resellers, on the other hand, procure the largest possible quantities of inexpensive products in order to take advantage of the price benefits for themselves. The real secret to this reselling side job is the mindset of an experienced reseller. But more on that later.
Which goods are particularly suitable for purchase and sale?
There is no one item that is particularly well suited for buying and selling. Rather, supply and demand in the market play a very large role. However, these two influencing factors are often subject to seasonal trends. This means that anyone who wants to be successful in a reselling side job must have a good feel for the current needs of customers. However, there are a few goods that, together with a good strategy, are particularly well suited for buying and selling:
Electronic goods Reseller
Especially technical items are a great niche product if you want to be successful with a reselling side job. The advantage of reselling electronic items is the balance between supply and unbroken demand. It doesn’t matter if you want to sell cell phones, TVs, or game consoles. The market offers an almost inexhaustible selection of various electronic items, which are offered at different prices.
Unfortunately, the search for attractive deals is very time-consuming. That’s why we have developed a free app that informs you daily about the best reselling deals. Download it now for free and become a reseller!
Limited products Reseller
The advantage of such goods is that the price for resale can often be set as high as desired. One example is trading cards, which have become increasingly popular over the years. Signed CDs of popular bands also sometimes fetch horrendous prices. Lego reselling is also interesting: the sets from the Danish brick manufacturer are only produced for a certain period of time and then increase in value.
Antiques Reseller
A flea market or an apartment clearance can bring many a treasure to light. With a little negotiating skill, you can often find good bargains that will generate good profits when resold.
Brand clothing Reseller
Especially popular are brands of famous designers. They are often hard to get and can therefore be resold at very high prices. Of course, the listed products are only for inspiration, because basically, with the right strategy, almost all goods and services can be resold at a profit.
What are the characteristics of a good product for resale?
A suitable product for the reselling side job can be recognized by a few special features. As a reseller, you naturally evaluate the individual criteria differently depending on the product range. Beginners in particular do not yet have a feeling for how quickly demand can change. Therefore, it is an advantage if the goods can be stored for a long time without much effort. Transport should also be as uncomplicated as possible. If the goods first have to be shipped, the costs often swallow up the entire profit.
Every reseller naturally wants to make as much profit as possible from buying and selling. Therefore, a good price calculation is worthwhile in advance, which covers costs and brings in monetary benefits. This means that in addition to purchasing, and warehousing costs, administration, and contributions for web hosting should also be considered. In case of doubt, a tax consultant can be helpful in making a good calculation. The products should also be as counterfeit-proof as possible. Otherwise, cheap plagiarism will be offered at some point, artificially pushing the price down.
A reselling side job is particularly lucrative with goods that have already enjoyed great popularity for many years. They are characterized by particularly good value stability and usually do not remain in stock for long. It may sound a bit strange, but it does have a deeper meaning: the best products for reselling are those with the greatest possible price differences. In the end, this makes it much easier to determine the price yourself. After all, the lack of transparency makes it difficult for the end customer to assess the value correctly.
In order not to lose interest in reselling as a side job, the whole thing should of course be fun. If you have to slog through manuals to understand the item yourself, you’ll probably give up quickly.
Is such a side job legal?
Reselling as a side job is definitely legal if you take a few things into account beforehand. According to German law, for example, you always have to register a sideline if you run a business with the intention of making a profit in the long term. That probably sounds like a lot of bureaucracy. Fortunately, it is relatively easy to register a sideline business. There are numerous templates available on the Internet that you can fill out, sign, and submit to the respective municipality. You can also find a template for business registration on our blog.
How do I build reselling as a lucrative side hustle?
If you want to make money from reselling, you have to watch the market quite closely and stay up to date. It is important to keep an eye on the trends in order to be able to react to changes in demand as quickly as possible.
Especially in the beginning, you need to have a little patience. A loyal customer base does not build up overnight, and the right strategy also needs to be well thought out. In case of doubt, you should be able to change the chosen method.
What is the right strategy for a part time job?
There are about as many strategies for reselling as there are products. However, a few methods have proven very successful in recent years.
1) Upgrade
Some items can be upgraded with a few simple steps and then resold with great added value. This works especially well with old furniture. Anyone with a talent for craftsmanship can achieve a lot with it.
2) Collections
Particularly popular are special collections that can be sold in individual parts or completely. An example is soccer cards, which are very popular not only among children. The figures of surprise eggs are also very suitable for this purpose.
3) New goods
Especially the sale of electronic goods is usually worthwhile if you take advantage of certain discount promotions on various platforms on the Internet. Especially at Christmas, retailers lure you there with very favorable offers.
To make it easier for you to find deals on new products, we have developed a free app. It informs you about the best deals via push notification. Download it now for free and become a reseller!
4) Anti-Trend
There are resellers who always align their offer exactly against the trend. This has the advantage that the goods are usually particularly cheap to procure. However, this strategy also requires a lot of courage and patience. After all, goods are purchased that are no longer in demand at all, but will hopefully soon be back in fashion.
5) Import
Another strategy could be to import certain items at dumping prices from low-wage countries and then offer them to richer countries. To do this, however, you need to be well acquainted with the customs regulations there so as not to take any unnecessary risks.
6) Marketplace arbitrage
There is not just one platform or marketplace! Fortunately, there are currently numerous websites where good price comparisons are possible. This allows you to buy on cheap platforms and with a little luck offer again on expensive sites.
7) Quantity discounts
Another strategy is based on volume discounts. This involves deliberately purchasing large quantities of certain items in order to achieve a lower price. The danger is to create an oversupply that cannot be sold.
Platforms for reselling side job
Below is a summary of the most important platforms at a glance. Depending on the strategy and product, the various options are well or less well-suited.
1) eBay and eBay classifieds
The online marketplaces eBay and eBay Kleinanzeigen are unrivaled in Germany, particularly in the area of trading in used goods. But the two marketplaces are also very well suited for the sale of new goods. eBay.de has the advantage that visitor numbers are the highest here. Disadvantages are the relatively high fees of at least 6.5% on the selling price and a transaction fee of 35 cents per order. On classifieds, on the other hand, no fixed fees are due. Depending on the payment method offered, PayPal fees of 2.49% + 35 cents are added, for example. Registration with the two online marketplaces is uncomplicated. Only the account setup at eBay requires additional information such as the deposit of the VAT identification number.
Automated deal search on eBay Classifieds
eBay Classifieds is not only suitable for selling new and used goods. It is also possible to find and buy reselling products. The best part is: You can even negotiate the price. eBay Classifieds are usually used to quickly get rid of items that are no longer needed. Sellers are often unaware of the actual prices and post their items at low prices. The most interesting is certainly the purchase of popular items that are posted for a fraction of their actual value. These include, for example, coveted console games, board games, and so on:
- Phase 10
- Godzilla PS3
- Carcasonne
It is no secret that desirable items at low prices are sold very quickly. If you want to be the first to know about new listings, we recommend you use our Classifieds Monitor. It monitors your searches and notifies you when a new listing is available. eBay Classifieds does have a notification function. But it is about 30-60 minutes too slow.
2) Flea markets
You can’t get any closer to the customer than that! In addition, a flea market offers the opportunity to observe other sellers and to expand one’s own assortment in a meaningful way.
3) Clothing exchanges on the Internet
They often offer the opportunity to buy expensive individual items cheaply. The advantage is that you can trade with the seller. Unfortunately, a big disadvantage is often the poor quality of the parts and the high shipping costs.
4) Brands4friends
On this platform, regularly changing the remaining stock of various brands is offered. It is exclusively new goods, which are ideal for resale. In addition to clothing, shoes, or leather goods, you can also find high-quality jewelry that can be sold in a reselling side job.
The reselling side job requires you to think like a reseller. That is, you can either sell directly to the end customer or involve another middleman. Both options have advantages and disadvantages. An additional entrepreneur who is already established often has an existing customer base that you can help leverage. The disadvantage is that the profit margin becomes smaller and smaller the more resellers there are until the end customer.
Conclusion
It is quite possible to make a name for yourself by reselling and building a lucrative side job. However, a few things need to be taken into account. Firstly, a sideline must be registered in advance so that taxes can be properly paid. It can also be helpful to use an accounting program. But that is not enough. Because it is not enough to simply want to sell a cheap product somewhere more expensive. Rather, you have to think like an experienced trader. Which product is particularly suitable for this project and which clientele do I reach with it? There are goods that are well suited for the older generation and those that are bought almost exclusively by young people. You should also consider how good the availability of the products is. If you want to trade in the rare earth or precious stones, you will probably face new problems sooner or later.
