When we talk about flipping in the context of reselling for profit, we refer to the practice of buying items at a low price and selling them for a higher price.
This concept isn’t new as it has been used in real estate and the stock market for years.
However, the advent of online marketplaces like Depop has opened up a new world for item flipping, allowing anyone with some spare time and a keen eye for value to earn extra income.
It’s essentially another name for reselling or arbitrage!
If you’re interested in how to start a reselling business, then you might want to check out our guide on how to become a reseller.
What is flipping?
Item flipping works on a simple principle: buy low, sell high.
But in practice, it’s much more complex than that. It involves sourcing items from yard sales, thrift stores, online marketplaces or even in your own home, then selling them on platforms like eBay, Depop, Amazon or Etsy.
There are several benefits to flipping items. Firstly, it can be a lucrative side hustle or even a full-time job if done right. Secondly, it provides an opportunity to learn about different items and their value.
Is item flipping risky?
Yes. Like any business venture, there is risk involved in item flipping.
There’s always a chance that you may not sell the item at a profit, or worse, not sell it at all. That’s why understanding the market, demand and the value of items is crucial.
However, with proper research and understanding of the market or products you’re choosing to flip, these risks can be mitigated. When you’re choosing your reselling business idea, choose wisely.
How To Find High-Profit Things To Flip
Choosing the right item to flip isn’t as simple as picking up any old thing and listing it online.
Several factors come into play such as the item’s profitability, market demand, and the platform where you plan to sell it.
Before selecting an item to flip, thorough research is necessary. Look into how much similar items have sold for in the past, how many people are looking for that item and where they’re looking.
This will help you make an informed decision and increase your chances of making a profit.
Most Profitable Items to Flip
The most profitable items to flip are:
- Vintage electronics
- Designer Clothing
- Collectable toys
- Pokemon cards and sports cards
- Rare books
Vintage electronics like old game consoles or Walkmans can fetch a high price from collectors. On the other hand, designer clothing can be found cheaply at thrift stores and sold at a significant markup on a platform like Depop or Poshmark.
Generally though, the more expensive an item is to buy, the higher the profit when you flip it.
Which admittedly makes it harder to turn a profit when you’re starting out with no capital! Even for sneaker reselling, you’re going to need a couple hundred to purchase your first pair to flip.
You might want to take a look at other side hustles and second jobs out there if you’re low on money to start with.
There are countless examples of successful flips out there. Take for instance a flipper who found a vintage Nintendo game for $2 at a yard sale and sold it for $200 online. That’s a profit margin of nearly 10,000%!
High-profit margins vary greatly depending on the item and how well you’re able to negotiate when buying it. It’s not uncommon to see profit margins of 100% or more in successful flips.
However, there are also unsuccessful flips. Another flipper bought a bulk lot of DVDs for $50 hoping to make a profit by selling them individually. However, they discovered that most of the DVDs were not in demand and ended up making a loss.
In order to make the super high-profit margins of 100% or more, then you’ll either need deep knowledge of the niche you’re operating in OR have the skills to repair and refurb items in order to sell them on for a high profit.
Be honest with yourself, do you actually know how to reupholster that antique German day bed?
Tips for Successful Flipping
Successful flipping often comes down to buying low and selling high. Negotiating skills can be key when sourcing items cheaply.
Additionally, knowing where to find items can give you an edge. Thrift stores, yard sales and online classifieds are great places to start, but you’ll need the knowledge to really find the diamonds in the haystacks.
You’ll also need patience if you want to turn this flipping into a successful endeavour.
A Pokemon card bought 2 years ago won’t command a high price at the moment, but if you wait 15 years, then you could seriously cash in in the future.
It may also take time for rarer items to sell, are you OK with having an inventory hanging around for months or even years on end?
This is why it’s SO IMPORTANT you do your research before purchasing an item to flip.
Flipping items can be a profitable venture if done right. Whether it’s vintage electronics or designer clothing, there’s potential to make significant profits with the right research and negotiation skills.
If you’re interested in exploring this further, there are plenty of resources available online that offer advice on getting started with item flipping.
We’d love to hear from you! Share your experiences with item flipping in the comments below or feel free to ask any questions you might have. Happy flipping!