Reselling (or goods traffic arbitrage) is a particular business niche that focuses on buying and selling goods, or just on users redirecting to online stores. Mostly of beginners choose China as a source of cheap goods to resell. But this is only one sence of the word “reselling” – when goods are purchased at wholesale prices and then released to retailers with a markup.
The second meaning is working with commodity CPA-networks. With this method of cooperation, you send your traffic (blog subscribers, YouTube channel viewers or website readers) to a partner store (e.g., Aliexpress, iHerb, Trip.com) and benefit from it up to 70% of the cost of goods.
Online stores and services using CPA model
What is reselling business, and how to make money on it?
Reselling business thrives on the expanses of Internet for more than 10 years. Literally every day thousands of people send requests to search engines to buy something necessary, and on this you can and should earn.
But the idea to buy boxes of goods and sell them on local market is unlikely to work nowadays. Without certain knowledge, skills and experience, it will not be so easy as it seems.
Mandatory points for a reselling business successful start
- Find an interesting product (preferably 5 – 10 items). For example, a pilot for May 9, cotton balls and garlands for New Year’s Eve.
- Analyze the demand (estimate the number of views of ads in the services Yula, Avito and on marketplaces).
- Screen out low-margin goods on the basis of the analysis.
- Purchase goods in bulk at a low price.
- Make a good website or a social media account.
- Start advertising.
As experience shows, this scheme is the best to reduce losses at the start. Keep in mind that the product may immediately prove popular, and it will be instantly bought up – it will be necessary to urgently purchase a new batch from the supplier. To create a profitable bundle must constantly test different products. And practice shows that it is easier and cheaper to do it through bulletin boards.
Terms in the reselling business
A beginner first needs to understand the terminology. Let’s take a look at the most frequently used ones.
- Traffic – how many people visit your site or view your ads. The more this indicator, the more potential orders you will have. Traffic can be bought with advertising ( tagreg, Yandex Direct or My Target ).
- To pour – drive more traffic to your resource. For example, “I pour on hoodies in ads” can be translated as using advertising platforms to promote hoodies and increase traffic on the site.
- A lead is a customer who leaves an application on your resource. He is not yet a customer, but a potential buyer. Perhaps such a person from you need counseling.
- Conversion, CR – is the percentage ratio of real actions of visitors on the site (adding goods to the cart, likes, sending requests, etc.) and made orders. For example, 100 visitors just looked at the product, and 1 made an order, your CR=1%, if you get 10 orders, the conversion will increase to 10 percent.
- Singlepage website – a business card, which has all the necessary information for visitors on one page. It is such sites that collect more conversions, as there is no unnecessary information and visitors are more likely to decide to place an order.
- Split-test, A/B test – a marketing research that allows you to understand what your resource collects more conversions, that is, is the most visited.
- Cash on delivery – when the client pays for the goods upon receipt. This is a great way to earn the trust of potential buyers if they are afraid of deception.
- Redemption – the number of redeemed goods.
- Non-redemption – the number of items not redeemed.
- Upsell (up-sell) is the literal translation of presale. It is considered a good tone in the commodity is always to make presale to the main order to the user, thanks to this you will be able to bypass competitors and position potential buyers in a positive direction.
- Outsourcing is about redistributing responsibilities to shed the chore and focus on scaling the business. For example, over time, you can hire someone to make calls, consult on orders, deal with returns, ship products, etc.
- Refund – the same as non-redemption.
- Domain, domain name – the name of the site, which falls out in the search engine. It should be registered through special services.
- Hosting – a platform where your site is located and the domain is attached. This provides visibility of your resource for all.
- Traffic source – a type of advertising, with the help of which you attract visitors to the site.
- Call center, call-centre – your technical support, which you recruit from trained people. They ring the base, process applications, and advise on orders.