How to Open a Resale Shop
Obtain a tax ID number and a business license., Decide what kind of merchandise you will sell., Find the perfect property., Collect inventory., Set up your space for your grand opening., Have your prices ready., Advertise your resale shop., Start...
Step-by-Step Guide
-
Step 1: Obtain a tax ID number and a business license.
You will need to register your business with your state and apply for a business license.
You should check with your local government offices for the appropriate forms and requirements. -
Step 2: Decide what kind of merchandise you will sell.
Many different types of products can be bought and sold on consignment.
There are resale stores that sell clothing, baby and kid gear, toys, handbags and even furniture.
Choosing what you want to sell will help you figure out how much space you will need for the location. , Look for a place that is affordable, but also big enough to hold your inventory.
Location is also a factor, more visible locations are usually more expensive but will bring in more customers.
Consider where the property is located, if it is easy to find and if there is ample parking for your customers. , Gather some products to sell so that your store will not be empty when you first open your doors.
You can ask friends and family if they have items that you can resell.
You can also look for merchandise at auctions, garage sales, other resale shops and online.
Some places will give you a cheaper price since you are shopping for a business, so make sure you have your tax ID number handy. , Organize your merchandise.
You want the customers to be able to see everything without making the store look cluttered.
Set up the aisles so that your customers will be able to move around in the store.
If you are selling baby things, make sure there is enough room for parents to push a stroller around. , Everything in your store should be labeled with a price.
Decide ahead of time if your prices are firm or if you are willing to let customers negotiate.
You should also have a general idea of how much you are willing to pay sellers for their items.
Have consignment forms printed and ready for your opening in case you have some customers wanting to sell things to you on the first day. , Start handing out flyers and business cards.
Send out emails and letter mailings.
You can post an ad in your local classifieds and on bulletin boards.
It is best to advertise to your prospective audience.
For example, if you specialize in children clothes and toys, then talk to parents at playgroups and local parks.
Ask day cares and preschool to hand out flyers for you. , If you depend solely on selling your own old items or on donations or consignments from people you know, you'll run out of inventory quickly! Keeping your store fully stocked with a variety of inventory is a great way to build customer loyalty, so you'll want to make sure you have reliable sources of product that can replenish you anytime you need it.
You can purchase from regular wholesalers, though their prices tend to be on the higher side especially if you are starting a discount store.
Liquidation companies and wholesale liquidators often have smaller lots of overstocked product from department stores that they sell off for pennies on the dollar.
Liquidation lots can be an excellent way to get really discounted items into your hands, but be sure to do ample research on the companies you choose to work with. -
Step 3: Find the perfect property.
-
Step 4: Collect inventory.
-
Step 5: Set up your space for your grand opening.
-
Step 6: Have your prices ready.
-
Step 7: Advertise your resale shop.
-
Step 8: Start looking for suppliers.
Detailed Guide
You will need to register your business with your state and apply for a business license.
You should check with your local government offices for the appropriate forms and requirements.
Many different types of products can be bought and sold on consignment.
There are resale stores that sell clothing, baby and kid gear, toys, handbags and even furniture.
Choosing what you want to sell will help you figure out how much space you will need for the location. , Look for a place that is affordable, but also big enough to hold your inventory.
Location is also a factor, more visible locations are usually more expensive but will bring in more customers.
Consider where the property is located, if it is easy to find and if there is ample parking for your customers. , Gather some products to sell so that your store will not be empty when you first open your doors.
You can ask friends and family if they have items that you can resell.
You can also look for merchandise at auctions, garage sales, other resale shops and online.
Some places will give you a cheaper price since you are shopping for a business, so make sure you have your tax ID number handy. , Organize your merchandise.
You want the customers to be able to see everything without making the store look cluttered.
Set up the aisles so that your customers will be able to move around in the store.
If you are selling baby things, make sure there is enough room for parents to push a stroller around. , Everything in your store should be labeled with a price.
Decide ahead of time if your prices are firm or if you are willing to let customers negotiate.
You should also have a general idea of how much you are willing to pay sellers for their items.
Have consignment forms printed and ready for your opening in case you have some customers wanting to sell things to you on the first day. , Start handing out flyers and business cards.
Send out emails and letter mailings.
You can post an ad in your local classifieds and on bulletin boards.
It is best to advertise to your prospective audience.
For example, if you specialize in children clothes and toys, then talk to parents at playgroups and local parks.
Ask day cares and preschool to hand out flyers for you. , If you depend solely on selling your own old items or on donations or consignments from people you know, you'll run out of inventory quickly! Keeping your store fully stocked with a variety of inventory is a great way to build customer loyalty, so you'll want to make sure you have reliable sources of product that can replenish you anytime you need it.
You can purchase from regular wholesalers, though their prices tend to be on the higher side especially if you are starting a discount store.
Liquidation companies and wholesale liquidators often have smaller lots of overstocked product from department stores that they sell off for pennies on the dollar.
Liquidation lots can be an excellent way to get really discounted items into your hands, but be sure to do ample research on the companies you choose to work with.
About the Author
Gary Alvarez
Professional writer focused on creating easy-to-follow practical skills tutorials.
Rate This Guide
How helpful was this guide? Click to rate: