Can i resell retail

Reselling is one such model. Becoming a reseller is a great way to start selling online without starting from square one.

A reseller is a person who purchases products from manufacturers, liquidators, or other retailers and then sells them to their own customers. The permit—also known as a resale license, resale certificate, and tax exemption certificate—allows resellers to purchase certain items free of sales tax:.

Reselling is a form of dropshipping , where companies source products and materials from a variety of suppliers and make them available to consumers in one place. This business model makes it easier for the average consumer to find and purchase products.

Resellers also often add some sort of value-add in terms of the customer experience. Resellers can sell individual units to customers at a markup , as well as create a branded customer experience. Those elements may be as simple as in-depth product descriptions and reviews, a customer loyalty program, and customer support. A reselling business has a number of benefits and can be a profitable business model, especially if you have niche expertise.

Because product reselling is a common type of dropshipping, it can be difficult to attract customers. Straight product reselling is great for someone who has specific expertise or knowledge of an industry or demographic. For example, someone who knows about animal behavior could create a dropshipping business around the different toys that are best suited for pets.

The sales tax laws vary by state, and each state has its own sales tax rates. In some states, local sales taxes must be collected, too. According to the Tax Foundation , all 46 states and the District of Columbia collect statewide sales taxes, and 38 states collect local sales taxes. But the reseller does have to collect the sales tax from customers and send it to the state. Like a business license, you take out your resale permit where your resale business operates. If you incorporate in, say, Florida but have a store, online shipping location, or factory in Delaware, you need a Delaware reseller's permit.

If you buy and sell goods in multiple states, you need a valid permit in each. Note: Many states allow you to use an out-of-state sales tax permit when completing resale certificate documentation, so before you go out getting a permit for each state, so check before re-applying. To find a supplier for your resale business, start with identifying what types of products you want to sell and what kinds of customers you want to sell them to.

To search for suppliers, you can look at online directories, do a Google search, or ask for referrals from within your network. Oberlo is an example of a product sourcing app perfect for Shopify merchants. For instance, a discount store might contract with Nike to buy surplus and discontinued shoes at a steep discount and sell them in their stores.

Yes, you have the right to resell just about anything that you buy. As a consequence, you can end up fighting a multi-front battle in which you are being sued for both counterfeiting and using protected trademarks to sell the counterfeit products.

A customer who buys that product from the reseller has the same warranty protections one would enjoy if one bought it straight from the manufacturer. This is not the case for unauthorized resellers. In other cases, this warranty is modified, restricted, or replaced in some manner.

As a reseller, you maximize the value of your product by marketing it as new and identical to the same products sold by major retailers. If you sell a product as new, but it has a different warranty than the same product purchased directly from the manufacturer, it could be considered as selling a product that is different than the original. Back in the s, guitar manufacturer Fender sued Unlimited Music Center for importing and selling Fender guitars made for the Japanese market.

The guitars looked almost identical to corresponding American models, but had some structural differences, and had different warranty and service contracts. Because Universal Music did not clearly distinguish these differences, they were found guilty of infringement, and barred from importing the Japanese guitars. Enesco took great pains to control the distribution and sale of their figurines for purposes of quality control and marketing.

They bolstered their argument by pointing out that Costco violated the Lanham Act because they did not disclose to consumers that the figurines were not sold in their original packaging. Costco won the original suit, but lost in the Ninth Circuit Court of Appeals. The fact that Costco merely had to adjust their packaging may seem minor, but the case was immensely costly—far more than any typical reseller could bear.

In search of a unique wholesaler? Online wholesaler Salehoo has a large collection of suppliers from all over the world. For 67 dollars you have access for a year to contact them. The traditional way to buy inventory that you can resell online, of course, is to start a relationship with a wholesaler. Unfortunately, this is not easy.

Wholesalers usually have a bunch of loyal buyers already and rather sell them some more, than work with new buyers. Moreover, they are reluctant to supply to small online shops with fewer orders.

This is why you do not see wholesalers promoting their supply services loud and proud. And if you ask a supplier about it, they will have a list of strict requirements.

For example, orders have to be of a high value. Some wholesalers may demand that you have a physical store or will not offer returns. Since wholesalers play hard to get, it is easy to get discouraged when you are first starting out in ecommerce.

However, it pays off to be prepared when approaching a wholesaler. Make sure you have an overview of your visitor numbers and, if you already have some products to sell, the number of sales. Also have your monthly revenue at the ready.

This way you can prove that you will place an order regularly. This makes you a more attractive buyer. Lastly, do not fall into the trap of blindly chasing the one wholesaler that shows an interest in your business.

It is certainly possible to build an inventory by just ordering from one wholesaler. However, you do not want to put all your eggs in one basket. Reach out to multiple wholesalers. That way, if an order is delayed, you can avoid further disaster and keep selling products in your shop. This is why a lot of retailers buy their products directly from Chinese manufacturers. Buying stock straight from the source is appealing, since the purchase prices are a lot lower than those of European suppliers.

Buying products from Chinese companies is easy thanks to online wholesale platforms like AliExpress or Alibaba , the second being more business-to-business based. Suppliers on these platforms also have less severe requirements than European wholesalers.

This also makes it an attractive venture for new online shops. Buying inventory from Chinese suppliers can be lucrative, but there are a few things to consider. Things that often go wrong are sales tax, bad product images or a too long delivery time that customers will complain about. But those are just ordinary steps. As mentioned before, products from Asian manufacturers have less severe quality requirements. This means you are usually not allowed to sell them to European customers.

So before ordering from an Asian supplier, check if they meet European quality standards first. Also, even though purchase prices are lower when buying from a Chinese manufacturer, there are some additional costs. Shipping costs, for example, will be a lot higher.