What Reselling is about

Posted by Felix Okoli on Tuesday July 19, 2011 10:40:14:

You can make money in Nigeria by reselling popular products or services.
Reselling about buying items and then selling it back to people. The way by which resellers make money is when they buy popular goods at wholesale or discount prices and then sell it to buyers at a higher price. The extra gain they get is their profit and this keeps them in business.
There is a whole lot of reselling going on in Nigeria in case you don't already know. People resell a lot of things which are scarce in Nigeria to their end users.
Some of the things people resell in Nigeria and make good profit from are:
- Web hosting
- Domain registration
- Designer items like watches, jewellery and wardrobe wears
- Laptops and phones
- Internet services
- Auto Spare parts

Reselling is more common where people don't really produce anything but rather buy already finished goods from a major supplier and then sell them for profit.
It is normally more favourable for people who can make use of the internet to source for goods or services which does not already have a lot of local competitors but has high demand in Nigeria and then using your secret of getting the best prices, procure the goods and then using your knowledge of the marketplace to sell them fast for huge profits.

Take a look at Laptop dealers in Nigeria. A lot of them probably didn't start with a huge capital. Some may have even started with something like NGN200,000 and then surveyed the market to find out that most laptop users are students who would not have much funds to buy expensive laptops so getting laptops for them at a price of about NGN15,000 would probably sell faster. So with about N200,000, he may buy cheaper or refurbished laptops from the internet at about NGN8000 each for say 10 units. So with N80,000 he will be able to buy such laptops and then would sell them for N15,000 each giving a total of N150,000 in sales and a profit of NGN70,000. If he is able to beat down the cost of shipping and other expenses, it is actually a good business.

When you are involved in reselling business, you would need to buy the items in wholesale prices fist and at a good discount to beat down other related costs, his profits would be much higher.

So buy at low price in bulk and sell in single units, that's what reselling business is all about. Signing up for deals at popular US stores can also help you get great prices. For instance, those who deal in designer clothing, swatch or Chris Aire watches and even Kenneth Cole stores normally do spring and winter sales and even Christmas deals. Those are great times to buy if you are into reselling such items. Try to take advantage of every opportunity you get to reduce your price in the reselling business and you would continue to remain in business.
Also another thing that could kill your profits is old stock. Try not to keep your stock of items for too long as stock tends to depreciate the longer it stays in one place. Focus on marketing to improve your sales and if possible, use drop shipping tools to minimize your costs.

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