Selling Online as a Business: Sourcing and Funding Tips

I struggled with organization and planning in my resale business, like everyone else. At the start of my reselling adventure, I honestly had no idea how it all worked, and didn’t even think it was even possible to turn my collecting lifestyle into a business.

I made a lot of mistakes in those early days that cost me time and money. Mistakes I had never made or dealt with in the past. I thought long and hard about why mistakes and confusion never happened in my previous profession – as a regional manager for a national restaurant chain.

The answer was very simple and had been staring me straight in the eye the entire time: any national company, including those I had worked for, had already implemented structured practices and procedures for all aspects everyday. daily, monthly and annual transactions. Nothing was left to chance.

In my previous article, I discussed some of the basic business practices I use to avoid many of the inevitable pitfalls and perils in the resale world. As your level of experience and your business grows, there are many other business practices you can take advantage of that can help move your business forward.

Off-season shopping is one of those concepts I’ve used for over a decade. The whole idea of ​​reselling is to buy low and then resell high. Buying out of season is a good way to do this. Many items will cost you more if you buy them in peak season, such as buying Christmas items just before Christmas.

If you’re looking for the best return on investment (ROI), buying anything when the costs are highest isn’t a smart move. Buying vacation items right after the vacation ends or well before it arrives will always give you the lowest investment costs.

Most long-time wholesalers, myself included, will buy Christmas items months in advance to get the lowest possible price. Just like ordering supplies in bulk, you should also try to buy merchandise in bulk. Especially when costs are at their lowest.

This same philosophy also applies to the sale of your items. If an item is hot in Q4 but dead in Q2, it’s very obvious that you should sell those items. When demand is high, your items will sell for much more. Christmas lights, for example, sell well year-round, but will always sell more around the fourth quarter due to increased demand.

But, of course, not all items can or should be purchased in advance. In some cases, I may make a direct purchase on clearance or discontinued items, out of the blue. Supplies, not just goods, can also be purchased this way. If an opportunity arises that can either make me money or save me money, I will always jump at the opportunity as soon as possible.

In many cases, if you are an established business, there are ways to avoid paying immediately for these types of purchases. A domestic business will typically have their invoices due for purchases they made within 30, 60, or 90 days from the date they placed their order.

This means that many businesses can sell or benefit from items they have taken possession of, but have not yet paid for. I discovered that I could take possession of the inventory and, in some cases, sell enough to cover the entire purchase, before the invoice was due.

Having a bank account for your business is essential for this exact reason. Once you are established with your bank, most companies can obtain a Letter of Guarantee which you can provide to the company you are considering buying from.

The letter of guarantee is a legally binding document that guarantees that if you cannot pay for the purchase you are making, your bank will. This is the easiest way to essentially get free goods to sell. You need to choose your purchases with this method wisely though, because if you can’t pay for the purchase and your bank is forced to cover the cost, they will never give you this option again.

But none of this is possible without your business having an EIN (Employer Identification Number), which all physical and traditional businesses have. With an EIN, you can get a business bank account, along with many other benefits that can help your business grow.

Many banks, including mine, offer free business bank accounts, which is another incentive. A business bank account can open many doors for resellers, just like traditional businesses.

Reselling is a business in its own right, and once you understand all the options available for your reselling business, the more opportunities you will have. And, of course, the more opportunities you have, the better you will do. The better you do – the more money you will earn.

Don Heiden on InstagramDon Heiden on Youtube

Don Heiden

Don Heiden
Don Heiden is a 30-year veteran of online resale dating back to the days of Yahoo Auctions. He runs The Auction Professor YouTube channel which posts videos and content on various resale platforms and topics, and he is a member of eBay, Amazon, Hip and other affiliate programs where he can earn commission when linking to products on these sites. It is also found on most social networks under the same name, including Instagram. He is also a published professional artist which includes work produced for The Walt Disney Company. He holds an associate’s degree in designing, building, and administering database networks. He also holds a bachelor’s and master’s degree in research and communication from the University of Toledo.

Previous Revenue department launches more online services in Kerala
Next Foreign companies with online services in the Philippines must register with the SEC