Things To Do When Starting A Reselling Business

Here are important things to do when starting an online reselling business in the United States. If you want to be a successful reseller and start out on the right foot, the first step is to do these two things. Since starting my reselling business on an online marketplace in 2017, I implemented these important things right away. The first important step is a PO Box and the second step is a separate bank account for your business. I will be sharing a few more important things to do when starting your online business. Even if it is a side gig, the best practices is to keep track of what you are doing from the beginning.

Where do I start?

If you are in the reselling world, whether it’s online resale business, your own website, or e-commerce business, you want to do the best thing for your small business. Start by creating a business plan and figuring out your selling platform. Figure out a reselling business model, your marketing plan, and if you want it to be a full time gig or just a side hustle. This will save you a lot of time in the long run.

Right now there is ample opportunity to start resale businesses. The good news is, there are many different types of products an online reseller can source. More people then ever are online shopping and are supporting small businesses.

Online marketplaces are a great place to make extra money, whether it’s your full-time job or not. You don’t even have to thrift to resell anymore or come up with a revolutionary new product idea to make good money. There are a variety of suppliers that you can buy new products from and sell on reselling marketplaces.

PO Box

I would highly recommend investing in a PO Box. They are an investment because they can be expensive, but in the long run they are not a lot of money considering you have a profitable business. Many business owners have a PO Box. I choose to renew mine every year because in my opinion, it is totally worth it. With a PO Box, you can have peace of mind that your personal address is not on the label when sending or receiving a package. Another great thing about to investing in a PO Box is if you expand into another business it will be one less step for you in the beginning. Personally, I also think a PO Box address is a great idea because it looks more professional than a street address to your potential customers.

It may not seem like a big deal right now, but you will be glad your address is private and that you’ve made things easier on yourself for tax season.

Taxes

Reselling income on your taxes needs to be reported if you make over $600 a year. It may seem like a lot when you are first starting, but trust me, sales add up fast! Selling 24 items at $25 over the course of a year totals $600. That means you only need to sell 2 items a month to reach that threshold. The best way to keep track of this on a platform is to keep your receipts and download your bank statements. Most selling platforms are now providing a tax document.

Bank Account

I cannot stress this enough. You will be so glad that you did when tax season rolls around. Don’t worry about an official business account if you don’t want to do the yet. For now, just open another account that is adjoining to what you already have. You will receive a separate debit card to make purchases for your business. When it’s tax season, print out your monthly statements to see what you have spent and earned. Keeping it separate from your normal account is just one way to avoid a big headache! 

In Conclusion

This post will give you an idea of the basics you need to start an online store. Please know that there may be other things you need to implement or do, but this will give you an idea of where to start and how to launch a successful reselling business.

Getting Started on Poshmark

If you are interested in gaining a better understanding of how to use Poshmark, purchase my ebook! 

This fun, engaging 11 page ebook (with a bonus size conversion chart page) was created to help you understand Poshmark by beginning with the basics. In it you will find photo tips, sourcing tips, sharing resources, definitions of terms, and even a flow chart! Designed to be a step-by-step guide that will inspire, motivate, and help you better understand the world of Poshmark so you can confidently start your journey.

Thanks for Reading

This post will give you an idea of the basics you need to start an online store. Please know that there may be other things you need to implement or do, but this will give you an idea of where to start and how to launch a successful reselling business.

Thank you for stopping by and reading. Join my mailing list for more tips and printable’s. If you are interested in joining Poshmark, use my code POSHWITHLORI to receive $10 toward your first purchase.