A founder with a customer's order

What is a Resale Business?

If you have ever heard of thrift stores, consignment shops, or eBay, then you have heard about a reseller business. What are reseller businesses and how do they make profit? These businesses take products that have been newly bought or donations and then sell them to obtain a profit.

Resale businesses do not need to be brick and mortar. Companies like threadUP, a consignment and thrift store, operate fully online and ship products to their customers. This way, there is much flexibility in running a resale business.

We will take a look at two other resale businesses and how they operate.

Consignment Shops

Consignment shops purchase clothing and household decor products and resell them to the public. These shops have been very trendy lately. Their audience segmentation are people who are looking for vintage clothing or to be environmentally conscious by reusing already manufactured clothing. They hand pick products to be sold in stores. This way, shoppers are looking at quality products and designs.


eBay takes a different approach as it is a platform for others to sell their used products, and they take a cut of that. This way, eBay relies on its sellers to find products and choose the price or bid price.

Additionally, selling through eBay makes it beneficial to the sellers since it does not require the sellers to set up shop. Therefore, if you want to become a reseller but do it casually, eBay is a platform that allows you to do that.

Understanding the Resale Business Model

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