What Is Reselling and Is It A Good Side Hustle in 2024?

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One of the simplest and most reliable side hustles to start in 2024 is reselling. The side job offers flexibility, a clear and robust business model, great profit margins, and the ability to branch into several industries. In this article will we discuss what reselling is, how it works, and why it is a good side hustle to consider.

We will take a deep dive into the different types of reselling that you could start as well as how resellers make money.

To provide our readers with the best information, we have tried several types of reselling ourselves. A lot of the points covered in this article will be taken from our own experience however, we will also draw upon the experiences of other successful resellers in various niches.

By the end of our guide, you should have a clear idea of what reselling is, how it works, and the different types of reselling that you could get involved with.

Reselling is the process of buying goods from one retailer and then selling them for a higher price. The difference between the buy and sell price is then taken as profit.

Reselling is a very simple business model that has been around for decades. In fact, many high street stores use a reselling model on a larger scale whereby they purchase items in bulk for a low price from a wholesaler. Then, items are sold individually at a marked-up price to their customers.

Reselling is a flexible model that can be done on both small and large scales, using a variety of platforms and methods.

An example of reselling on a smaller scale would be finding a designer handbag in a charity shop and then reselling it on an auction site such as eBay for a higher price.

Resellers act as the middleman or product source. They find products that are in demand and sell them to customers. The business model is robust and entirely legal in the UK.

Pros and Cons of reselling as a side hustle in 2024

Pros:

• The reselling business model has a proven history of success. It has been used for centuries and works well in most market conditions.

• Reselling can work on both small and large scales.

• Reselling is straightforward to start. All you need is a platform to sell products and a supplier/source.

• The startup costs are relatively low. The main expenses involved are shipping and admin fees, if you choose to resell online.

• Reselling works in a range of niches. You can resell most things for clothing to website domains.

• You can make profits quickly. You do not need to build a huge following or invest in marketing to make your first sale.

Re-selling is a fairly simple process that involves four main components: product sourcing, listing, selling and fulfillment.

Read: How to sell clothes on Depop

Sourcing your products

The method of sourcing products will vary depending on what type of reselling businesses you choose to start. For example, clothing resellers will use very different suppliers than domain resellers.

Product sourcing is the most time-consuming part of reselling. It often involves visiting various suppliers to find the most competitive prices for the products that you want to resell. Over time, you will build up a list of reputable suppliers and sourcing methods that you will use every time that you source.

Listing your products

After finding some products to resell, you will need to list each product on your chosen selling platform. The key to success here is to take high-quality photos and write optimized descriptions.

Never provide false or misleading information. This could get your seller’s account/permit banned. When listing your products, aim for 100% transparency to build trust with buyers and attract positive seller ratings.

Selling your products

Sell your products online or in person at a higher price than you purchased them for. When pricing your products, take any expenses into account. These could include packaging and shipping, store fees, travel costs, and taxes.

If you choose to resell through an online platform, communication is key. Successful sellers regularly reach out to potential customers with offers to encourage sales.

As soon as a sale is made, you will be required to fulfill the order. After this, you will receive payment.

If you choose to resell online, the payment is usually held until the buyer has received their order. You should always keep proof of postage incase products get lost in the shipping process. If you cannot prove that you have posted a lost item, you may have to issue a refund.

Ship your products

The last step is to ship your products. This could mean using a postal delivery service, delivering the products yourself, or offering a door pick-up service. To attract positive ratings, pack each product neatly, ship quickly, and use a tracked service (if you ship with a third-party provider).

Reselling is a simple business model that could easily be carried out by one person in just a few hours per week. A lot of resellers run their small business alongside their full-time jobs. The most time-consuming aspects are sourcing products and shipping. You should consider whether you can carry these tasks out before starting a reselling side hustle.

How do resellers make money?

Resellers make money by selling products for a higher price than they were originally bought for. The difference between the buy and sell price is the profit margin.

When calculating profits, resellers must take the costs of sourcing, listing, and fulfillment into account. Some online reselling platforms may charge a selling commission, which will reduce the profit margin.

To be successful, resellers must price their items competitively, whilst accounting for business costs.

Now that you understand what reselling is and what it involves, it’s time to take a look at the different reselling opportunities that are available in the UK in 2024.

Also read: Best side hustles for teens in the UK

One of the main advantages of reselling is that it can be done in various industries. Some people may choose to resell clothing on Depop whereas others may choose to resell antiques, technology or even cars. There is something to suit every interest.

Below, we will discuss each popular type of reselling. We have spent time testing and reviewing each option to discover how to start and how to be successful in each niche.

1. Clothing resale

The most popular type of reselling business that we came across was clothing resale. The reason that this is popular is because it is easy to start and there are a lot of online platforms available that simplify the process.

We tried this side hustle ourselves. We resold clothing on Depop and made around £300 in one month, spending just 2-3 hours per week on the side hustle.

Clothing resellers sell clothing on platforms such as Depop, Vinted, eBay Mecari, and more. Read this full list of places to sell your clothes online for some further options.

Resellers use a variety of methods to source their items, depending on their niche and business scale. Small-scale sellers might ‘thrift’ pieces from charity shops, car boot sales, vintage stores, or online auction platforms. Whereas, large-scale sellers usually purchase their stock from wholesalers.

One of the most appealing aspects of clothing resale as a side hustle is that you do not have to be over the age of 18 to start. This makes it a suitable side hustle for teens who want to make extra money online.

2. Antiques resale

Another popular type of reselling business is antique resale. This involves purchasing antique or vintage items and reselling them on auction sites such as eBay or Etsy.

Antiques are desirable items that are collected by enthusiasts. The items are considered to have high value due to their age, historical significance, or rarity. Examples include ceramics, vases or furniture.

Most Antique resellers will find each item individually from car boot sales, auction houses, or word of mouth. Due to the rarity of Antiques, they can be quite difficult to find. However, the price point for these items on the reselling market is high.

To start a successful Antique reselling business, you will first need to establish yourself as a trusted expert. Antiques are expensive which means that it is important that each product is checked for authenticity before it is sold. Spend time learning how to spot authentic items and fakes so that you can ensure every product that you sell is legit.

3. Luxury item resale

There is a big market for luxury item resellers who can source designer products and resell them online for a competitive price. Reselling luxury items involves sourcing items, checking their authenticity, and listing them on platforms such as Depop, eBay, or Vestiaire Collective. The most popular luxury items to sell are handbags, shoes, and jewelry.

Becoming a luxury product reseller requires a lot of product knowledge. You must be able to tell if an item is legit or fake, to avoid accidentally selling a knock-off to your paying customers.

During our research, we came across Sellier Knightsbridge - a successful luxury reseller who has managed to scale their business to become a recognizable brand. The brand is proof that reselling is a viable business option in 2024.

Most luxury resellers will spend time searching through various sources to find products. Similar to antiques, luxury items are rare so it is unlikely that you will be able to find any through a wholesaler or even in local charity shops. Instead, it is a good idea to use auctions.

4. Small business resale

It is possible to resell products that aren’t physical items. A popular example is small businesses.

Business resellers sell profitable small businesses to entrepreneurs. The resellers act as a third party between business owners who want to sell and buyers. This can be a very lucrative reselling side hustle to start because it is possible to mark up the value of businesses through marketing and branding.

What’s more, small businesses are unique products with no identical competitors. Therefore, it is much easier to charge a higher price than what you originally paid. This is because buyers won’t be able to find an identical business for a lower price anywhere else.

Most small business resellers act as an individual broker and find products by contacting owners directly. It is also possible to find small businesses to sell on online brokers.

5. Ticket reselling

Reselling even tickers is a profitable business idea that is relatively easy to start. It involves purchasing tickets for big events and then reselling them for a higher price when tickets are sold out. The key to success is being able to anticipate which events will sell out.

A lot of resellers sell tickets through Facebook groups or platforms such as eBay. This is a straightforward and easy way to make money by selling tickets online.

The main drawback of this business is that you might not always be able to make a profit from the tickets that you buy. This could happen if an event isn’t as popular as you believed it would be and tickets don’t sell out. Additionally, reselling tickets requires a startup budget to purchase the initial tickets.

6. Car reselling

This one is for any motor enthusiasts who might be reading! It is possible to make a good income by reselling cars on platforms such as FaceBook marketplace or AutoTrader.

This involves purchasing cars for a low price and reselling them for profit. A lot of car resellers make improvements to the cars that they buy to allow them to sell at a higher price. However, it is definitely possible to turn a profit without touching the cars that you buy.

You can find cheap cars by visiting garages, scrap yards, and car auction websites. Before purchasing vehicles to sell, check their history. It is important to know everything about the cars before listing them for resale.

As you can see, there are a lot of different reselling opportunities available and the list above is not exhaustive!

Reselling provides you with the opportunity to start a business in a niche that you’re genuinely interested in, whether that be fashion or cars.

You should now have a pretty good idea about what reselling is and what it involves. Before jumping in and starting a reselling business of your own, it’s important to understand the licensing and tax requirements.

As a UK-based blog, we spent time researching relevant resale permits and taxation policies that are applicable to UK sellers.

Do you need a resellers license in the UK?

It is possible to start reselling on a small scale without a license in the UK. This applies to anyone who wants to make extra income selling products online on the side of their full time job.

However, to scale up your business and buy stock from a wholesaler, you will need to get a reseller’s permit. The resellers permit helps the government to recognize your business so that you do not have to pay sales tax when buying items in bulk for the purpose of resale.

Reselling tax in the UK

Everyone in the UK is required to pay tax on their side income if they generate more than £1000. Therefore, if you earn more than £1000 through reselling, you will need to pay the appropriate taxes. This is typically done by completing the yearly self-assessment tax return.

It is a good idea to save a percentage of your profits for taxes throughout the year. This will make it easier to pay your tax bill when it’s due.

Conclusion

Reselling is a popular side hustle that makes it possible to earn money by shopping. Resellers spend time finding items for a cheap price and then sell them to buyers for a higher rate. It is a strong business model that has been used for years.

In this article, we have taken a deep dive into what reselling is, how it works, and the different types of reselling business that you could start.

It is important to understand that there is no guarantee that you will make any money from this side hustle. All of the side hustles that we discuss at The Rich Girl Guide are legit. However, it takes time, persistence and motivation to see results.

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