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Launching any business in 2023 is a challenge. With inflation remaining stubbornly high and the cost of living not looking to go anywhere any time soon, finding the investments to start a company and finding the customers to sustain it has become that much harder.
But that’s not to say it’s impossible. As ever, the difficulty of starting a business depends entirely on personal willpower, the state of the industry, and the sector of business you are looking to delve into.
Reselling, for instance, had a stormer of a year in 2022. With a market value of $177 billion, the move to cheaper, more sustainable shopping is a trend that has bolstered the resale business. Not only this but the resale market is set to double in just three years, growing at a CAGR of 16% to reach $350 billion in 2026.
With a boost in popularity, however, comes a boost in competition. Although the state of the reselling industry is positive in 2023, more and more start-ups are going to be joining the list of millions of businesses already in competition.
So is it technically harder to run a reseller business in 2023, or is the global success of the market bound to make your company a success?
Running The Right Kind Of Business
First off, the success of any business always comes down to the customer. So while the resale market might be blooming, it’s important to focus the customer directly on you and to do that, you will need to give them incentives.
With efficiently planned reseller incentives, you will not only be able to keep customers close with a solid loyalty program but also get insights into what they want and how your company can develop. This can include the type of products you are selling, the price at which you sell those products, and the way in which you market them.
Incentives, too, are only going to be bolstered by a strong online presence. Social media is still the most effective digital marketing strategy, helping you to connect fully with your customers and show them why you are the right reseller for their needs.
Lowering Risk
While a strong relationship with your customers is essential to stand out, it won’t be the only thing to dictate whether you are successful or not. One of the key mistakes resale businesses make is ineffectively financing their operations.
You will need to make sure you’re lowering your financial risk with effective navigation of the industry as a whole. For instance, you can avoid risk by avoiding bulk inventory – only paying for goods when consumers order them – and dedicating yourself to an extensive range that will cover several target markets – for instance, clothes, tech, furniture, and sports equipment.
This goes back to the incentive plan mentioned earlier, of course. With a solid incentive strategy, you will be able to glean more data on your existing customers, helping you to discover what they want to buy from you and which products are creating the most digital footfall. Once you know this, you can amplify specific ranges, selling more products in the areas where you have already seen success.
The Bottom Line
Running a reseller company is still one of the best ways to make money, as exemplified by the success of the market over the last few years. But it’s still important to remember your competition, work hard to stand out from the crowd, and always give the customer what they want.
