Last Updated on November 16, 2020 by Camilla Gill
How To Become A Reseller
How I Started A Online Reseller Business Selling Clothes
I spoke with my sister Francesca, the owner of Franc & Green, a sustainable online reseller clothing business targeted to women. Learn how she makes over $650 a day reselling clothes!
We talked about how she started her reselling business selling clothes, launching her eCommerce store on Shopify and her top tips to teach other people how to become a reseller!
What Is A Reseller Business?
A reseller business allows you to resell products bought from manufacturers to customers, these products could be anything and you can source them from anywhere.
It’s a great option for anyone wanting to start a side-hustle or a small business because you don’t need a lot of money to get started.
Whether you want to resell clothes or resell shoes, you’ll quickly learn you can sell anything through a Shopify store. Your reseller online shop can expand into other niches without expensive inventory fees, additional costs, or high shipping costs.
Why did you decide to start the business?
It had always been my dream to own a brick and mortar clothing store, but over the years I had given up on this dream. Instead, I had been climbing the corporate ladder, changing jobs almost as often as my outfits, because I was so dissatisfied with the traditional 9-5 career.
I loved going to interviews and getting the job and then the first two weeks were great. Then there was always a period of about 6-12 months, where I steadily started to dislike my work more and more. My favorite month was always the one just after I’d handed in my notice.
I thought I was never going to find a job I liked. The more I thought about it, the more I realized how easily I’d given up on my dreams of owning a shop selling clothes. It was all I wanted to do from the age of 16.
Traditional clothing retail stores might be on the decline, but the world of eCommerce is booming and set to grow exponentially over the next decade. Why couldn’t I start an online store?
How Did You Start Your Online Reselling Business?
For a while, I dabbled in selling on eBay in 2017 as a side-hustle. But in 2018, I decided to quit my job give it my all, and start a reselling business as my full-time job.
I had just bought a house, so this was both terrifying and motivating. I needed to make enough to cover my half of the mortgage and bills.
The first thing to do if you want to start a reseller business is source stock. So, I started sourcing second-hand clothing from my family and friends, this worked for a while but I needed to scale up.
Then started buying it in bulk from thrift shops and consignment store. For the first 18 months, my reselling business was only on eBay under the business name Franc & Green.
How Do You Scale A Reseller Business?
After 18 months of sourcing stock from second-hand stores, I learned about wholesale clothing and buying returned and lost stock.
Now I buy wholesale clothes by the pallet load. These are made up of lost or returned stock that might be slightly damaged or in perfect, tagged condition.
These pallets are sold for 10-15% of their retail value at auction.
I might buy a pallet for $750 that has a retail value 0f $5000. I can then make a profit of about $3000 on this!
How easy is it to make money reselling clothes online?
Anyone can resell clothes online. And with platforms, like eBay, there’s no barriers to entry so you can get started right now.
Competition is high and things don’t usually sell instantly so bear that in mind when you start off.
As long as you keep listing consistently and at good prices you should start to see sales roll in. Even if you think your used things are junk, it is another person’s treasure. You’ll be amazed at what sells.
What Are Your Top 3 Tips For Starting A Reseller Business?
My top three tips are these:
- Take clear and light photos using your phone and make sure you photograph any damage.
- Check sold “buy it now” prices to find out how to price an item
- eBay take a cut of your p&p costs to price that into the postage price
Why Did You Build An Online Shopify Store?
My goal was to always have my own eCommerce store, but it takes time to build and market this which is why I had chosen to use eBay initially.
But when Covid-19 lockdown was announced in the UK, in March 2020, I knew it was now or never.
I went with a Shopify store because it was really easy to set up for people without a technical background. I managed to get it all online without any professional help.
Shop Franc & Green launched on 1st May 2020.
Why Do You Like Shopify?
Having my own Shopify shop means I make more profit as the fees are cheaper. It’s more work, especially on the marketing side, but it is more rewarding financially and I feel more in control.
I’m not at the mercy of eBay and am in complete control of my business.
How Much Money Do Resellers Make?
When I first started selling on eBay, I was so happy when I made more than $600 a month, this is good money for a small side-hustle but it’s not enough for a full-time income.
Now though, I’m proud to say that I am often making more than $650 per day!
After I’ve paid my mortgage and any other bills that come my way, I reinvest all my money back into the shop. I’ve just taken on my first part-time employee and I am looking forward to scaling my reseller business.
Any other top tips for people wanting to get into online reselling?
Sell things you know and love. I’m not interested in vintage clothes or model airplanes so I don’t sell those things. I’ve niched down my offering so I can focus and better market my brand.
Start small. Just like all good things, it takes hard work and dedication to build a business so don’t get put off if you haven’t made a tonne of money in your first month.
Do your research. Check out what sells and the prices things are selling at before buying anything. Just because it’s cheap to buy in bulk, doesn’t mean you can make any money on it.
Get Involved With The Community. There are lots of great people to follow and learn from on Instagram and YouTube.