One aspect of reselling that every business needs to keep an eye on is their costs. And while this seems like a no-brainer, quite often a reseller can get caught up in a really good sale, only to find out later that their profit margin was drastically diminished because of shipping materials, fees, time (and money) spent on cleaning/repairing an item, or some other business related reason.
You have the potential to dramatically reduce the costs in your reselling business if you can answer “yes” to the following questions.
1) Do you have a place where you buy shipping materials at a discounted rate or can get them for free on a consistent basis?
2) Do you factor in the weight of your items and the profit reduction with “free” shipping?
3) Do most of your items take a small amount of time to clean/repair/iron/etc? (Time is money!)
4) Do you think about what format would be best to list your items in terms of fees?
5) Have you researched and chosen an image hosting site to cut down on photo fees?
6) When you pick a price for items, do you make sure you have taken into account all the fees, cost of shipping materials, and time spent finding, buying, cleaning, and listing to justify the price?
7) Do you “cut your losses” and remove listings that aren’t selling or getting any activity on a periodic basis?
8) Do you research your items so you are not buying/listing items that “might-possibly-perhaps-maybe” sell but actually DO sell?
9)Are your listings clear, filled with the necessary information, and have good pictures thus cutting down on unnecessary returns?
10) Do you actively reduce your expenses during the slower months? (i.e. reducing the number of listings, only listing items that would sell during that time, watch your expenditures on inventory,etc)
Again, the more “yes” answers…the healthier your business will be in terms of costs. If you make cutting costs part of your daily routine, eventually the habit takes over and you will see an increase of the money that was unnecessarily flowing out….start flowing back into YOUR pocket!