{"id":27421,"date":"2022-09-22T16:50:41","date_gmt":"2022-09-22T11:20:41","guid":{"rendered":"https:\/\/www.cheggindia.com\/?post_type=earn-online&p=27421"},"modified":"2025-08-05T16:04:24","modified_gmt":"2025-08-05T10:34:24","slug":"online-reseller-business","status":"publish","type":"earn-online","link":"https:\/\/www.cheggindia.com\/hi\/earn-online\/online-reseller-business\/","title":{"rendered":"How to Start an Online Reseller Business & Earn from Day One"},"content":{"rendered":"\n

The reselling business in India is booming, with over 5 million registered sellers earning profits of 15% to 40% per product. Whether you sell online through apps or run a physical setup, reselling offers a flexible and profitable way to start a business with low investment. Many have even turned part-time reselling into full-time income, thanks to the rise of social media and eCommerce platforms.<\/p>\n\n\n\n

Want to know how to start and succeed as a reseller? Keep reading\u2014this guide covers everything you need to know.<\/p>\n\n\n\n

Who is a Reseller?<\/h2>\n\n\n\n

A reseller is an individual or business that purchases goods or services from suppliers and sells them to end customers, often at a markup, without manufacturing the products themselves.<\/p>\n\n\n\n

What do you understand by Online Reseller Business?<\/h2>\n\n\n\n

An online reseller business is a model where individuals or companies buy products from manufacturers, wholesalers, or suppliers and sell them through digital platforms like e-commerce websites, social media<\/strong><\/a>, or marketplaces. Resellers often leverage dropshipping<\/strong><\/a>, bulk purchasing, or white-labeling strategies to operate efficiently without maintaining large inventories.<\/p>\n\n\n\n

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Difference between a Reseller and a Distributor<\/h2>\n\n\n\n

Sometimes the nature of resellers\u2019 business is considered similar to that of wholesale distributors. However, there are certain differences:<\/p>\n\n\n\n

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Basis<\/strong><\/p>\n<\/td>

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Distributors<\/strong><\/p>\n<\/td>

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Resellers<\/strong><\/p>\n<\/td><\/tr>

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Relation with Manufacturer<\/strong><\/p>\n<\/td>

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Distributors tend to have a better relation with manufactures, as distributors help them with labelling, marketing, and government permissions. This means they make more effort than simply purchasing a product. Thus, improving the relationship between the two.<\/p>\n<\/td>

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Resellers don\u2019t work closely with manufacturers and might never meet them. They purchase goods from retailers or wholesalers with a single motive of selling them to end consumers. In the online reselling business, there is no marketing assistance or any help after the sale to the producers.<\/p>\n<\/td><\/tr>

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Inventory Management<\/strong><\/p>\n<\/td>

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Distributors buy inventory from the suppliers like wholesalers or manufacturers in bulk. This ensures large storage and warehousing capacity for the inventory making them liable to manage the inventory effectively.<\/p>\n<\/td>

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Resellers don\u2019t have to invest in holding any sort of inventory. They can sell goods as and when their customers demand. The reselling model is completely demand-based. Which means they would buy only those items for which the consumers have placed the order.<\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Benefits of Starting Online Reselling Business<\/h2>\n\n\n\n

1. Lucrative Business<\/h3>\n\n\n\n

An online reselling business<\/strong><\/a> is a good option for anybody who wants to sell products digitally but doesn\u2019t want to hold inventory. You earn good money by selling products at them marginally high price earning you good profits.<\/p>\n\n\n\n

2. Multiple Product Listings<\/h3>\n\n\n\n

In reselling business, you could sell as many product types as you wish online. There is no need for the products to be similar or unrelated, you just need to sell in-demand products.<\/p>\n\n\n\n

3. Easy Establishment<\/h3>\n\n\n\n

In the online reseller business, you must have a platform \u2013 social media, WhatsApp, website or blog to connect with consumers. After that, you could easily connect with customers and become available for business.<\/p>\n\n\n\n

4. Low Financial Commitment<\/h3>\n\n\n\n

There is no need to maintain inventory in the reselling business. That means you don\u2019t have to spend on compliance, warehousing or mass purchases. And the shipping and packaging charges are minimal too.<\/p>\n\n\n\n

How to Get a Reseller Business Permit?<\/h2>\n\n\n\n
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In an online reseller business, you need to have a resale permit to resale products. Here are the steps to follow to get your reselling permit.<\/p>\n\n\n\n

1. Register the Business<\/h3>\n\n\n\n

Get a business licence for the place from where your business operates or is incorporated. You might require foreign qualifications for working in states outside of where your business is registered.<\/p>\n\n\n\n

2. Research State Laws and Regulations<\/h3>\n\n\n\n

In many states, you could get an out-of-state reseller\u2019s permit so that you don\u2019t have to pay sales tax on resale items. However, many states won\u2019t allow you with this permit. So before buying products across state lines, it is better to research state laws for online and in-person purchases.<\/p>\n\n\n\n

3. Gather your Application Material<\/h3>\n\n\n\n

Having all the necessary documents to apply for the reseller\u2019s permit is important. Once you have all the necessary documents, it is better to submit your application.<\/p>\n\n\n\n

4. Get Resale Permit<\/h3>\n\n\n\n

In online reseller business, you must have various products. Thus, it is important to have a resale permit for every state where you buy and sell goods. You might need to pay the associated fees along with the resale permit. However, many states allow you to have an out-of-state sales tax permit. Thus, it is very important to check the states\u2019 guidelines for which you are getting the resale permit.<\/p>\n\n\n\n

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How to Start Online Reseller Business?<\/h2>\n\n\n\n

Now that you have got your permit to resale products, you must want to know what next. How would you start your online resale business? Here\u2019s how:<\/p>\n\n\n\n

1. Finalising the Business Specifics<\/h3>\n\n\n\n

The one benefit of starting an online reselling business is that one could choose to deal in a variety of products. It is a vast area of selling. Before finalising the business specifics, you could decide on a few options, like:<\/p>\n\n\n\n