Reselling is a popular choice for many local small businesses and new entrepreneurs. It is a way to earn income that doesn’t require manufacturing costs. Unlike traditional manufacturing, where you create products from scratch, reselling involves buying goods from wholesalers or big companies and then selling them to customers at a profitable price.
Companies such as Avon, Tupperware, and Herbalife have long been leaders in the reselling industry, offering people the opportunity to sell products and generate a steady income. For example, Avon, named amongst Top Trending Beauty Brands, is a leading company in the beauty and skincare products industry. Yet, reseller status isn’t limited to the beauty industry. Beyond this sector, the list of reseller opportunities is only limited by your imagination.
The Strategy Behind Reselling for SMEs
This business strategy of resellers centres around distributing and advertising products instead of making them. The impact on the SME is that it saves time and reduces input costs for small orders that cannot compete with giant corporations.
SMEs can benefit from this business strategy because it is a low-risk opportunity to become entrepreneurs. Risks are low since entrepreneurs can use existing brands and products without the financial burdens that are usually related to the manufacturing of the products. In addition, organisations that offer reselling opportunities usually provide the necessary training and assistance to succeed.
Succeeding As a Reseller
The success of reselling is not only about getting the products and the sales but also about good business practices. Compliance with the laws and regulations that govern any business operations is vital. Therefore, SMEs have to make sure that they are complying with consumer protection laws, tax regulations and licensing requirements to avoid possible transgressions. It is worth it to seek advice from experts who can instruct you about the information you are unsure about. Furthermore, adherence to the industry standards is a key practice that a business should follow to be successful in the reselling field.
Here are a few important factors to keep in mind:
1. Business Registration and Permits
SMEs should register their business and get the permits and licenses they need to run their business.
2. Supplier Identification
The main thing that makes a good product is the reliability of the suppliers. Starting good relations with wholesalers or manufacturers will be the perfect way to get a constant supply of inventory. This can benefit your business during negotiation for better wholesale prices or discounts.
3. Sales Channel Selection
Choosing the right sales channels is one of the most crucial points for successful customer targeting. Online platforms, physical storefronts, or direct selling methods are the vehicles through which SMEs should identify their target market and distribution strategy.
Just like many other businesses, resellers aren’t limited to a physical location. The digital era, with all its online marketplaces and electronic storefronts, create the necessary space to reach customers beyond city borders. Through online platforms like Shopify, Etsy, or social media marketplaces, resellers can bring their products to a bigger customer base.
4. Marketing and Selling
As the groundwork is finished, SMEs can then focus on advertising their products and making sales. The use of different marketing channels, for example, social media, e-mail campaigns, and promotional events all help to get customers and increase sales.
5. Social Media and Networking for Reselling
A good reselling business is also based on strong networks and excellent customer relationships. The SMEs can use social media platforms, attend networking events, and join industry groups to increase their reach.
Consider leveraging your connections through collaboration opportunities. Collaboration with other businesses not only leads to increased visibility, but also mutual growth.
It is clear that reselling gives small-, medium- and micro enterprises in South Africa a viable way to grow in a challenging business world. By leveraging popular brand names, utilising specific digital platforms, and forming deep and rewarding relationships, SMEs can flourish without needing to invest in manufacturing facilities.
