There has been unprecedented growth in the e-commerce business in India in recent years.
As per a survey, online selling is expected to increase from 4% of the total food and grocery, apparel, and consumer electronics retail trade in 2020 to 8% by 2025.
Manufacturers and producers are inclining to the online platform to sell their products. Their conventional method to hand over their products to distributors is getting shifted to the online platform.
Generally, producers or whole-sellers have to sell their stocks to distributors at a shallow margin compared to the online platform. Distributors reach the product either directly to end customers or through other small agents to sell the product.
In this case, both manufacturer and customers lose the opportunity to gain an extra margin. If a producer or whole big seller can reach a product directly to the customer through an online platform, it will be a win-win for both of them.
So, if you have a little bit of marketing knowledge on how to sell a product, you will flourish in this business.
You just need to market the product and sell it to potential customers without nominal investment.
With the e-commerce business proliferating, the future of reseller business in India is very bright and enticing.
Scope and Future
You might have heard the name of Meesho, an online platform for resellers.
This company has raised $ 215.2 million till now as a reselling platform. Meesho had revenue of 341.6 cr. In the 2020 financial year.
Another big reseller platform, Shop 101, touches $ 3.9 million to boost social commerce. Besides, India’s e-commerce market was expected to get at $ 150 billion by 2022 and help 4% of GDP.
You can sense the enormous potentiality of this drop-ship business soon. In the beginning, you can earn from 10k to 25k per month in the reseller business in India from the comfort of your home.
Steps To Get Started
Before plunging into this new business, you should have a master plan.
Be mentally prepared
As reselling business is solely related to marketing and product sales, you have to be very patient and handle customers’ unwanted pressure.
So a mental preparation is essential to sustain for a long time and succeed in this business.
Understand the basics of the business
In reselling business, you are just a middleman between a wholesaler or manufacturer and a customer.
Your task is only to market the product and sell it to the end customer. The online platform you will use will do everything on your behalf. It will take orders and ship them to the customer.
The customer you are selling products will never know the platform you are using and the product’s original price.
Suppose an online platform is selling a product for INR 100. You can reprise it as per your business plan, 10% or 15% extra. The online company will receive the total amount you have assigned while delivering the product. Then the extra 10 or 15% profit will be credited to your account.
Start from home
You can start this reselling business with your relatives and friends; though it may seem unethical, you have to be professional rather than emotional in business.
Branding through social media
In reselling business, you will always have to rely on social media to grow your business. You must have a WhatsApp business group. Then market your product through Instagram. It is the best place for reselling business. Opening some Facebook pages will help you to expand your customer base.
Creating a website
Creating a business website and listing products on it is a very professional approach to grow in this business. You can seek help from a web expert in this case.
To start a reselling business in India, you need no investment without a smartphone with an internet connection at the initial stage.
But you will have to invest some money in creating a website or promoting your products through Facebook.
It can cost not more than 15 k to market your product.
A business that you can start without any investment initially is perfect for a new entrepreneur. But you must be aware of some specific challenges you are going to face in this business.
The challenges you can face are:
- Wrong delivery of the product multiple times
- Intolerable delay in delivery
- Very low-quality products
- Payments issue from the company
So, what you should do to avoid these kinds of hurdles are-
- Develop a reseller community to share productive tips and experience.
- Do not rely on a single platform. Every platform is unique and famous for some products, and the price is meager.
- Read multiple reviews of the product before placing an order.
- Communicate to the company regularly to raise the quality and service issues.
The success of reselling a business depends on two things – your marketing ability and a sense of empathy with your customers. If you can blend these two things, you will grow in this business.