A look at the merits of selling on secondhand marketplaces, how to start and why it teaches you how build a small business.
There are many reasons to sell on marketplaces such as eBay and Amazon. One reason you may not have thought about is that it gives entrepreneurs hands-on experience in running a small business. Sure, there will be difficulties and challenges in the beginning, but if you’re willing to learn from these experiences and adjust for them, you will succeed. Even if your venture on a marketplace doesn't reach the level where you're making enough money to quit your job, it's still very valuable experience.
Anybody can make a sale on Ebay, right? But the real challenge is building a business that is repeatable and profitable. There is a lot to learn about selling online and profitably by selling secondhand, whether you’re building a business or just trying to move some junk out of your closet.
A good place to start.
Let's highlight the good parts of selling products on marketplaces. You don’t need to invest a large sum in inventory. Your investment can be just a few pounds if you’re selling something cheap or free if you’re offering a trade. Second, when the sale comes through, you get the money relatively quickly - usually within 10 days of the purchase. Third, there’s a higher profit margin for sellers on marketplaces compared to Amazon and other popular direct sales platforms.
What selling on second-hand marketplaces teaches
1. Adding value
In the resale world, creating a product that people want to buy takes time and effort. During this process, sellers can also add value by explaining things in ways that are clear, interesting and motivating. For example, if you give a buyer access to information about the product before purchasing it, you have increased the chance that the seller will be remembered as a reliable source for information on that product. It also gives the buyer a chance to evaluate the product properly — what it looks like, what condition is it in, what occasions would it be perfect for, what is the delivery time. Note: never be afraid to ask for feedback on your products or services—it is certainly a way to strengthen your shop and get more customers!
2. Awareness of margins
When you're starting a small business, there are a lot of things you don't know. Margins are often one of them. How much profit can you make with your shop? Is there enough traffic to justify sourcing new items to list? The best way to figure out your margins is through following other successful sellers in your niche, reading their blog posts and watching what they do it. You'll be able to determine how much traffic and sales you need to operate at, what you profit margin is and how to increase sales without hurting the bottom line.
3. Building a following
Selling on marketplaces allows you to connect with other entrepreneurs and potential customers. You will learn the importance of growing your own following of people who are interested in your products.
You will learn how to market your products using social media and build your own personal brand.
At Nowplease, we believe that the experience you gain selling on marketplaces will inevitably help prepare you for future ventures. So, what's stopping you?