How To Start a Reselling Business in he UK 2024

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Reselling is a popular online business idea that allows people to make money on their own terms without having to create or design their own products. Instead, resellers sell second-hand products for a profit.

According to Statista, the secondhand clothing market was worth around 177 billion dollars in 2022 and is predicted to continue growing. The same report predicted that the market will be worth over 350 billion by 2027.

Therefore, it is not too late to start your own reselling side hustle and make money from the second-hand market in 2024.

In this guide, we will take a look at how to start a reselling business in 2024. We will use our own experience and the experiences of other successful resellers to cover everything you need to know before you start.

Reselling refers to the practice of purchasing items at a lower price and selling them for a profit. It involves a combination of strategic sourcing, marketing, and selling techniques.

Resellers search for products that are in demand and can be acquired at a lower cost, such as through wholesale channels, clearance sales, or online marketplaces.

Once they secure these items, resellers often optimize their resale value by enhancing their presentation, creating compelling listings, and targeting the right audience.

For instance, a reseller may purchase limited-edition sneakers at a discounted price during a sale event and then sell them at a higher price through platforms like eBay, Depop or Vinted. Reselling requires a keen eye for trends, knowledge of market values, and a talent for making secondhand products look great in photos.

Reselling has slowly become one of the most popular beginner side hustles to start. This is partly due to the simple business model that is easy to understand, even for complete amateurs. However, this is not the only reason that reselling is a good small business to consider right now.

The second-hand retail market is growing

One of the reasons that reselling has so much potential right now is that the secondhand retail market is growing at a significant rate.

The secondhand clothing market is predicted to grow 127% by 2026, providing excellent returns for resale business owners.

The demand for secondhand clothing and goods has grown in recent years due to the environmental impact of fast fashion. In an attempt to reduce the impact of fast fashion on the planet, consumers are turning to more sustainable alternatives.

You do not need to invest in marketing or have a large audience to sell products

Another benefit of starting a reselling business is that you do not need to invest in a huge marketing campaign or have a big social audience to make sales.

Unlike other eCommerce side hustles, it is possible to sell products on secondhand marketplaces without any marketing efforts at all. This is largely because these platforms work like search engines and have an already established consumer base.

By reselling on platforms such as Depop or eBay, you can tap into the existing user base and drive traffic to your listings with little marketing effort. As long as you accurately describe your items and use good photos, you will appear in searches.

Reselling comes with relatively low risk

Compared to other online businesses, reselling comes with relatively low risk. As long as you use trustworthy sources, find products that are trending, and price your items correctly, it is difficult to make any significant losses.

The main risk of reselling is being unable to sell the items that you purchase. This could happen if you buy low-quality products o ignore current trends. To avoid this, spend time researching the current market and find products that have a healthy demand from consumers.

In the following section, we will take a look at how to start a reselling business in the UK 2024.

To create this guide, we used our own experience as well as the experiences of other successful resellers. We started our own reselling business on Depop in 2021 and were able to make excellent profits. However, it is important to understand that every journey is different. Therefore, it is a good idea to research various strategies and methods before finding the most suitable one for you.

Also read: How to sell clothes on Depop

Step 1: Sign up to an online marketplace

The first step to starting a reselling business is to sign up to an online marketplace. This process is fairly simple and will require some personal details, tax information and proof of ID.

The most difficult part of this step is deciding on which marketplace to use. There are a number of reputable online platforms that can be used for reselling. Here is a brief overview of our top picks for 2024.

Reselling on Depop

Depop is the best platform to use if you plan on reselling clothing or accessories. It is one of the biggest reselling platforms with a user base of over 35 million (as of 2022).

Depop is home to some of the most successful clothing resellers. The platform is popular because it is beginner-friendly and offers social features that can be used to increase sales and drive traffic to your store. Depop is also a great side hustle for teens because the minimum age requirement is 13 years.

Reselling on eBay

eBay is another popular secondhand marketplace that is most suitable for technology or furniture resellers. The platform works as an online auction site through which buyers can bid on listings.

eBay has a user base of 135 million and traffic is based on the accuracy and quality of your listings. Therefore, it is possible for new sellers to appear at the top of search.

Reselling on Etsy

Another platform that can be used for reselling in the UK is Etsy. Etsy works slightly differently to other platforms because it allows sellers to set up and customize their own storefront. This is best for established resellers who want to move their business from a beginner marketplace to a more personalized platform.

If you have already made money by reselling on Depop or eBay and want to grow your business, read how to set up an Etsy shop.

Step 2: Source items to sell

After choosing a platform to use for your reselling business, the next step is to source products for your store.

At this stage, it is crucial that you choose reliable sources, spend time researching the best products and focus on quality over quantity.

Product sourcing involves finding products at a low or discounted price so that you can sell them for profit. Good places to look include charity shops, online auction sites, car boot sales, vintage stores, Facebook marketplace, and wholesalers.

When we started our Depop reselling business, we used eBay and charity shops to find products. We recommend shopping around to find the best products at the lowest prices.

Wholesalers are a good option if you have a higher startup budget. These are companies that sell items in bulk. Usually, the price that you pay per item is much lower than market value however, most wholesalers have a minimum order quantity that you must meet.

Step 3: Take product photos

Once you have sourced a collection of secondhand items to sell, you should spend time taking great product photos.

Consumers will see the photos before reading the description which means that a huge part of your success as a reseller will come down to the presentation of your products in the photos that you take.

Spend time experimenting with lighting, backdrops, and props to make your photos look appealing. You should also make sure to include as much detail as possible to taking photos of different angles and even modeling the products yourself to show the items in comparison to a person.

Most importantly, take photos of any imperfections or signs of wear that the product may have. This is a very important part of providing a good experience for your customers.

As a beginner, you should be able to take good photos on your phone. However, you may want to consider investing in professional photography equipment as your business grows.

Also read: How to promote your side hustle

Step 4: Create product listings

The key to success as a reseller in the UK is to create optimized product listings. Each listing should contain photos, a catchy title and a description of the item that you are selling.

You must include as much information as possible as well as relevant keywords. You should also make sure that your product description is 100% accurate - some platforms may close your account if you provide information that is false or misleading.

Although your description should be informative, try to avoid including too much filler content. The listing should be concise and easy to read.

Some platforms, such as Etsy, use an algorithm to determine what listings are shown in search results. To increase your chances of appearing, you should try to include keywords in your listing. These are words and phrases that are related to your product and may be searched for by customers.

For example, designer handbag resellers may want to include words such as ‘branded’, ‘authentic’, ‘women’s bag’, ‘genuine designer’, and so forth. By including relevant keywords, the algorithm will assume that your listing is relevant to the user’s search.

Step 5: List your products and promote your business

The next step is to publish your listings. When running our Depop business, we found that spreading the listings out over a few days was the best strategy. By doing this, you can consistently update your store with new products to attract new customers and show the algorithm that you are active on your store.

Prepare your listings and then gradually publish them to your account. You should also go back and update listings every few days to keep them fresh.

Once you have listed some products on your store, you should spend time promoting your business. You can do this my reaching out to potential customers via message (this is possible on Depop), or by sharing links to your store on your social media platforms.

Although promotion is a good way to increase your chance of making a sale, it is not 100% necessary. We sold many products without any kind of promotion.

Step 6: Register your business

You will not need to register your reselling business when you first start. However, you may want to register your business when you make more than £1000 in profits.

In the UK, it is possible to earn £1000 side income tax-free. However, you will need to pay tax on any profits after that.

To register your business, head to HMRC or Companies House. The process is fairly lengthy so you should take time to carefully go through the relevant documents. As a new business owner, it might be a good idea to consider using a company such as 1st Formations who can help you to register your business in 4 steps.

Do you need to register your reselling business?

In the UK, it is possible to earn up to £1000 tax-free from your side hustle. Any earnings above this are subject to tax.

Registering your reselling business is beneficial for tax efficiency. Registering as a limited company can reduce PAYE and NCIS bills and make it easier to distribute pay between employees when you eventually decide to expand.

Step 7: Continue sourcing products and monitoring your store

Once you start making sales, you will need to keep on top of your inventory and monitor your performance. Most reselling platforms will provide a dashboard that can be used to keep on top of your sales over time.

It is a good idea to use this tool to understand what works well and what doesn’t. You can then use this information to improve your strategy and increase sales.

You will also need to regularly top-up your stock to ensure that you have enough products to make steady profits. Most professional resellers work full-time hours and visit different suppliers each day to make sure that they have enough stock available.

It is also a good idea to build a good relationship with your customers by regularly offering promotions, staying active on social media, and providing clear communication to buyers. This all contributes to growing your business and establishing yourself as a trustworthy brand.

1. Start-up costs

One of the biggest disadvantages of starting a reselling business is the start-up costs. Unlike dropshipping or print-on-demand, reselling requires initial stock to be purchased before you can start making sales.

We started our Depop business with around £150 worth of stock as well as some items that were already in our wardrobe. The amount of money that you will need to start reselling depends on the type of items that you would like to sell and the suppliers that you use.

2. Reselling is not passive

if you’re looking to build a passive income stream, reselling may not be the best side hustle for you.

Unlike passive side hustles, running a reselling business requires a lot of effort. In fact, most full-time resellers work 40+ hours a week to find stock, take photos, create listings and monitor their store.

3. Hidden costs

Another disadvantage of reselling is that it can come with hidden costs that may eat into your profits. For example, many online reselling platforms charge a selling fee which is taken off of each sale that you make. You will also encounter packaging, shipping, and even return fees.

Although reselling is a profitable venture, there is no guarantee that you will make any money. However, you can increase your chances of success by following the tips below.

Focus on a specific niche

The most profitable reselling businesses understand their niche and stick to it. Choosing one specific niche will make it easier to establish your brand identity and target the right audience.

You should spend time understanding your niche before buying any stock or creating listings. Getting this right from the start is a key driver of success.

Always check the authenticity of designer items

If you choose to sell designer items, you should take extra steps to verify authenticity.

It is very common for secondhand shops and online marketplaces to sell duplicates that look exactly the same as the original. However, these duplicates have much lower value and should not be sold as designer in your store.

Your store may be penalized if you advertize a product as designer when it is not. it is a good idea to learn how to check for authenticity or to use professional authenticity-checking services.

Spend time creating great listings

To attract more customers and make more sales, you should spend time perfecting your product listings.

It can take a while to figure out what works and we recommend trying a few different styles and strategies before deciding on one final method.

Each listing should include high-quality photos, an accurate description and keywords that will help your products to appear in search results.

Use social media to increase traffic

One of the best ways to grow your reselling business is to harness the power of social media. You could use social media to share images of your products and reach a wider audience.

This works especially well for clothing resellers who can take aesthetic photos or videos to post online.

Social media is a great way to grow your business because it is free. The best platforms to use are Instagram, Pinterest and TikTok.

Conclusion

You can start your own reselling business in the UK by signing up to a reselling platform, finding a reliable source of products, and creating excellent listings.

In this guide, we have provided an in-depth overview of how to start reselling in 2024. We have drawn from our own experience as well as the experiences of others to provide as much helpful information as possible.

However, there is no guarantee that you will make money from reselling. This side hustle requires a lot of maintenance and admin and is not suitable for people who are looking to build passive income.

Nevertheless, reselling comes with a relatively low risk and can be started for less than £100 in the UK.

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