Setting Up a Product Flipping Business

By QuickBooks Canada Team

2 min read

Most people do not realize how massive the resale industry is. Yearly, thrift stores and used merchandise businesses generate tens of billions of dollars in revenue. However, you do not need a brick and mortar storefront to make a living as a reseller.

Treat Flipping as a Serious Business

Starting a product flipping company isn’t much different than creating any other business. You need to equip yourself with a comprehensive business plan, a solid budget, and a strong knowledge of your target audience and the products that appeal to them. Additionally, you should design a schedule for your business around the schedules of your local flea markets and thrift stores. Discover when these stores usually put out new inventory and host sales. It pays to be the first customer to browse newly added items or to be the first one in the door on a 50% off sale.

Scouting Products and Places

While you should start out looking for products in your local thrift stores, great items can also be found from garage sales, yard sales, auctions, and estate sales. The biggest difference here is that instead of dealing with a business, you are buying items from a person who is more likely to haggle, which can offer you more savings and profit when you resell. Additionally, flea markets can be pretty rewarding. The key to successfully buying and reselling products from this venue is to arrive early — ideally before opening. The most valuable items are always picked first, so don’t squander your time by going later in the day.

Useful Tools

Having an array of effective apps at your disposal may determine the success of your product flipping business. Without these apps, you’re at a huge disadvantage to your competition. Here a three tools that every reseller should have:

  • eBay is a fantastic way to determine a product’s value and whether it is worth flipping. Through eBay’s advanced search filters, you can see completed listings to view how frequently and how much an item is selling for. This is an extremely efficient way to gain a feel for products you might stumble across.
  • Yard Sale Treasure Map is an app created to help users find local garage or yard sales. With this app you can plan your routes, use markers, and conduct specific location searches. Moreover, this app offers turn-by-turn navigation.

CamelCamelCamel is a web browser add-on that allows you to examine Amazon’s pricing history of a product and set email alerts when an item’s price hits a certain level. Though this may not be too useful at the start of your flipping venture, it will likely become quite handy in the future as your business spreads to Amazon’s marketplace.

Pricing Products for Resale

Through extensive product research, you have a much higher probability of successfully buying low and selling high. To best accomplish this, it is a good idea to only flip products in a niche you are comfortable with. Moreover, remember to consider packing and postage expenses when pricing your items online.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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