Beginner's Guide

    How to Start Reselling in 2025

    Everything you need to know to launch a profitable reselling business, from finding inventory to making your first sale.

    15 min readUpdated December 2024

    What is Reselling?

    Reselling is the practice of buying items at a lower price and selling them at a higher price for profit. It's one of the oldest forms of commerce, and in the digital age, it's become accessible to anyone with a smartphone.

    Modern resellers source products from thrift stores, retail clearance, online arbitrage, liquidation pallets, garage sales, and wholesale suppliers. They then list these items on marketplaces like eBay, StockX, Depop, Grailed, and others.

    The key to successful reselling is finding items that are undervalued in one market and selling them where demand (and prices) are higher.

    Why Start Reselling?

    Reselling offers unique advantages that make it an attractive business model:

    • Low startup costs: Start with as little as $50-100 buying items to flip
    • Flexible schedule: Work whenever you want, from anywhere
    • Scalable income: Grow from side hustle to full-time business
    • Learn valuable skills: Marketing, photography, customer service, negotiation
    • No inventory creation: You're selling existing products, not manufacturing
    • Quick cash flow: Many platforms pay out within days of a sale
    Money Tip: Many successful resellers started with $100 or less and grew to six-figure businesses within 2-3 years.

    Choose Your Niche

    While you can resell almost anything, focusing on a niche helps you:

    • Develop expertise and spot deals faster
    • Build a reputation with repeat buyers
    • Understand market prices without constant research
    • Create efficient workflows for listing and shipping

    Choose a niche based on your interests, local sourcing opportunities, and profit margins. Don't pick something just because it's trendy—pick something you can learn deeply.

    Where to Source Inventory

    Finding inventory at the right price is the foundation of reselling. The best resellers develop multiple sourcing channels to maintain consistent inventory flow.

    Your goal is to buy items for 20-50% of their selling price, leaving room for fees, shipping, and profit.

    Best Sourcing Methods

    • Thrift stores: Goodwill, Salvation Army, local thrifts. Best for vintage clothing, unique finds. Go often—inventory rotates daily.
    • Retail arbitrage: Clearance sections at Target, Walmart, TJ Maxx. Scan items with the Amazon/eBay app to find markdowns selling for more online.
    • Garage/estate sales: Best prices on weekends. Arrive early for best selection, but late for better negotiation.
    • Online arbitrage: Buy discounted items online to resell. Check Slickdeals, Honey, and retailer flash sales.
    • Liquidation pallets: Buy returned/overstock merchandise by the pallet from B-Stock, BULQ, or Direct Liquidation.
    • Wholesale: Buy in bulk from manufacturers or distributors. Higher upfront cost but better margins at scale.
    • Retail drops: For sneakers/streetwear, enter raffles and buy at retail to resell limited items above retail.
    Pro Tip: Build relationships with thrift store employees. They can alert you when good inventory comes in.
    Money Tip: The 3x rule: Aim to sell items for at least 3x what you paid to cover fees, shipping, and ensure profit.

    Choose Your Selling Platforms

    Different platforms attract different buyers and have different fee structures. Most resellers use 2-3 platforms to maximize exposure.

    Consider these factors when choosing:

    • Platform fees (typically 10-15% of sale price)
    • Payment processing fees
    • Buyer demographics and what sells well
    • Shipping options and seller protections
    • Listing requirements and effort

    Platform Comparison

    Platform Best For Fees Pros
    eBay Everything, especially electronics & collectibles ~13% Huge audience, auction option, buyer trust
    StockX Sneakers, streetwear, trading cards 9-10% Anonymous, no photos needed, price transparency
    Grailed Men's fashion, streetwear, designer 9% + PayPal Fashion-focused audience, great for rare pieces
    Depop Vintage, trendy fashion, Gen Z buyers 10% Social features, younger audience, vintage-friendly
    Beginner Tip: Start with one platform, learn it well, then expand. eBay is the most versatile for beginners.

    Pricing Your Items

    Pricing is both art and science. Here's how to price items effectively:

    1. Research sold listings: Check eBay "Sold" filter, StockX sales history, or Grailed sold items for the same product.
    2. Account for condition: Adjust price based on wear, defects, or missing pieces.
    3. Calculate your floor: Add up purchase cost + fees + shipping supplies to know your minimum price.
    4. Consider competition: If 20 people are selling the same item, you may need to undercut or wait.
    5. Leave negotiation room: Price 10-15% above your target to allow for offers.
    Pro Tip: Use a profit calculator to know your exact take-home before listing. Fees and shipping can eat 25-35% of sale price.

    Checklist

    • Check sold listings on your platform
    • Check prices across multiple platforms
    • Calculate your breakeven price
    • Factor in platform fees
    • Add shipping cost or build into price
    • Leave room for negotiation

    Create Winning Listings

    Great listings sell items faster and at higher prices. Focus on these elements:

    Photography

    • Use natural lighting or a lightbox
    • White or neutral background
    • Multiple angles: front, back, sides, tags, flaws
    • Show scale (items on a mannequin or model perform better)

    Title

    • Include brand, model, size, color, condition
    • Use keywords buyers search for
    • Example: "Nike Air Jordan 1 Retro High OG Chicago Size 10 DS"

    Description

    • Be honest about condition and flaws
    • Include measurements for clothing
    • State shipping times and return policy
    • Tell a story if it adds value (vintage provenance, limited release)
    Never hide flaws—it leads to returns, negative reviews, and chargebacks. Honesty builds trust and repeat buyers.

    Shipping Basics

    Efficient shipping protects your margins and keeps buyers happy:

    • Use free supplies: USPS offers free Priority boxes. eBay and Pirate Ship offer discounted labels.
    • Calculate shipping before listing: Weigh and measure items to quote accurately.
    • Offer free shipping: Build it into the price—buyers prefer "free shipping" psychologically.
    • Ship fast: Same-day or next-day shipping builds reputation and earns positive reviews.
    • Always track: Use tracking numbers on every shipment. Never ship without proof of delivery.
    Money Tip: Pirate Ship and eBay labels are typically 20-40% cheaper than retail USPS/UPS rates.

    Track Your Profits

    Many resellers fail because they don't track their true profits. What feels like a $50 profit might be $20 after fees and costs.

    Track these metrics for every sale:

    • Purchase price (cost of goods)
    • Platform fees (commission, payment processing)
    • Shipping costs (labels, boxes, tape)
    • Time invested (your hourly rate matters)
    • Other expenses (storage, supplies, mileage)

    Use inventory management software to automate tracking. Spreadsheets work at first, but dedicated tools save hours and reduce errors as you scale.

    Pro Tip: Tools like ResellAIO automatically track inventory, calculate fees, and show true profit margins across all your sales.

    Scale Your Business

    Once you're consistently profitable, here's how to grow:

    1. Reinvest profits: Put 50-70% of profits back into inventory to compound growth.
    2. Improve sourcing: Find new channels, build relationships, buy in larger quantities for better prices.
    3. Optimize listings: Test different photos, titles, and prices to improve sell-through rate.
    4. Expand platforms: Cross-list to reach more buyers (use tools to sync inventory).
    5. Outsource low-value tasks: Hire help for shipping, photography, or listing as volume grows.
    6. Develop systems: Create SOPs for every task so the business runs smoothly.

    Checklist

    • Set monthly revenue and profit goals
    • Track key metrics weekly
    • Reinvest profits into inventory
    • Document your processes
    • Test one new sourcing channel per month
    • Consider software to automate tracking

    Common Mistakes to Avoid

    Learn from others' mistakes to accelerate your success:

    • Buying before researching: Always check sold prices before purchasing inventory.
    • Ignoring fees: A $100 sale is really $70-75 after fees. Calculate profit BEFORE buying.
    • Holding too long: Sitting inventory ties up capital. Price to sell, not to maximize every sale.
    • Poor record keeping: Not tracking costs leads to thinking you're profitable when you're not.
    • Spreading too thin: Master one niche and platform before expanding.
    • Ignoring customer service: Bad reviews tank your visibility. Resolve issues quickly and professionally.
    • Not treating it like a business: Separate finances, track mileage, save for taxes.
    Save 25-30% of profits for taxes. Self-employment income is taxable, and you'll owe quarterly estimated payments once you scale.

    Key Takeaways

    • Start small with $50-100 and reinvest profits to grow
    • Choose one niche and one platform to master first
    • Always research sold prices before buying inventory
    • Use the 3x rule: aim to sell for 3x your purchase price
    • Track every cost to know your true profit
    • Ship fast and communicate clearly with buyers
    • Treat reselling like a business from day one

    Frequently Asked Questions

    How much money do I need to start reselling?

    You can start with as little as $50-100. Begin by flipping items from your own closet or thrift store finds. As you make sales, reinvest profits to grow your inventory. Many successful resellers started with minimal capital.

    Is reselling legal?

    Yes, reselling is completely legal. You're buying products at one price and selling at another—this is the foundation of all commerce. Just make sure to report income for taxes and follow each platform's policies.

    How much can I make reselling?

    Income varies widely. Part-time resellers often make $500-2,000/month. Full-time resellers can make $5,000-20,000/month or more. Your earnings depend on time invested, capital, niche choice, and skill development.

    What's the best platform for beginners?

    eBay is the most versatile platform for beginners. It has the largest audience, sells almost every category, and has strong seller protections. Once you're comfortable, expand to niche platforms like StockX for sneakers or Depop for vintage fashion.

    Do I need a business license to resell?

    For casual reselling, you typically don't need a license. However, as you scale, you should register a business entity, get a resale certificate (for wholesale buying), and follow your state's requirements. Consult a tax professional as you grow.

    How do I handle returns and difficult buyers?

    Always be professional and resolve issues quickly. Accept returns when you're at fault. For scammers, document everything, use platform protections, and don't engage emotionally. Good customer service builds reputation and repeat business.

    Ready to Start Your Reselling Journey?

    ResellAIO helps you track inventory, calculate profits, and manage your reselling business. See your true margins on every sale across all platforms.

    Start Free Today