5 Great Reasons to Open a Resale Business

Opening a resale shop or business can be challenging yet rewarding. Most people are familiar with the standard thrift store, but there are many other resale shop options. Shop ideas can include bicycles, vehicles and sporting goods. Really, anything that is in demand, preferably higher-end items, can be resold. There are many reasons opening a resale shop is beneficial.

Higher Margins

Since you will be dealing in used items, you can get product for vastly reduced prices. It is possible, and should be your goal, to have margins in excess of 50 percent. With thrift stores, you can accept donations and sell items that you got for free. There is work associated with fixing and finding used items to resell. However, the more time you spend, the greater the deals you can find.

Saving the Planet

Since you will be selling pre-owned and used items, those items will escape the landfill, at least for a little while longer. More and more items are thrown away every year. Instead they can be donated or sold on to others. That is where you come in!

Low Start-Up Costs

One major advantage to opening a resale shop is low start-up costs. A thrift store can be opened with as little as $5,000. Start by seeking donations one to six months in advance. You can get racks and shelving for free or inexpensively from liquidations or other thrift stores. The main start-up costs would include rent and a contingency fund to cover a few months if business is slow.

You Can Help a Charity

Many for-profit resale shops partner with charities, a portion of sales to a charity. There are many reasons to do so. You get to help a charity that is important to you. You get to interact on a deeper level with your community. This opens new doors and opportunities for you and you will be more in touch with your customer base. More people are going to donate items to you if you partner with a charity. It also has good marketing potential.

Sell Online

If you are still nervous about opening a resale business, you can start out online. This will allow you to test the waters, especially if you are uncertain about what will and won’t sell. Also, use this time to learn about profit margins, and how much money you need to succeed. You can continue selling online even after you open a physical store if it is something that interests you.

A resale shop can be hard work, but it is also rewarding. There are many factors to consider before taking the plunge. However, if you are willing to do the work, you can be successful.

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