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Thread: Becoming A Reseller

  1. #1
    Join Date
    Dec 2011
    Posts
    0

    Becoming A Reseller

    There is a high demand for the particular product I want to sell, but it's hard to for Australians to find these products in stores, and in order to find one of these products you have to flick through page after page of the manufacturers websites. In my experience, the manufacturer's websites gave me false information and the stores they listed as resellers simply don't stock their products or know anything about their products. Some of these manufacturers do ship directly to Australia though.

    There is a need for such a website. I know because I have been searching the web for months to get solid prices on these products but the information is just either not available, or scattered all over the place.

    The idea I have for a site is very simple. It should have a very simple range of products with simple information about these products for comparison. The customer should be able to get quick, clear prices including shipping. The products will range from about $500-$1000 AUD.

    The catch is that I don't have a warehouse and I don't want to take the risk of buying a bunch of stock and not being able to sell it. I want to on sell what the manufacturers are already selling.

    The need for the website exists, but the question is how to turn this in to a viable business model. So, my question is, what is the standard practice here?

    Is it common to come to some agreement with the manufacturer so that they ship the product directly to the customer and I get a small cut?

    Is it common (or even legal) to take an order for a product, and then simply buy that product from the manufacturer and have it shipped over?

    I want to sell products from several competing manufacturers, but I will potentially have things like reviews on the website. How can I negotiate something with the manufacturers so that they don't revoke any agreements in future based on negative feedback etc?

  2. #2
    Join Date
    Jul 2012
    Posts
    16
    It is very common and legal to have an agreement with a manufacturer to sell their products and gain a small cut.
    The position you're looking to fill is an "affiliate" role, meaning you promote and sell the product without having to purchase any merchandise.
    This low risk style of business is a great idea for extra money on the side.
    How you can get started is by getting in contacting with said manufacturer and ask if they already are set up for affiliates and if so how you can apply or get the ball rolling.

  3. #3
    Join Date
    Mar 2010
    Posts
    360
    Quote Originally Posted by kruddler View Post
    ... Is it common to come to some agreement with the manufacturer so that they ship the product directly to the customer and I get a small cut?...
    It is common. You can find orders that the manufacturer fulfills, and they pay you a commission. Or you can take the order (at your price), and then pay the manufacturer (at their price) to ship direct to the customer.

    Quote Originally Posted by kruddler View Post
    ... Is it common (or even legal) to take an order for a product, and then simply buy that product from the manufacturer and have it shipped over?...
    It is both common and legal.

    Quote Originally Posted by kruddler View Post
    ... I want to sell products from several competing manufacturers, but I will potentially have things like reviews on the website. How can I negotiate something with the manufacturers so that they don't revoke any agreements in future based on negative feedback etc?
    You simply ask them in clear language to agree. When they agree, it is part of the contract.

    In ALL the above scenarios, you will be dealing with customers in your own country, but relying on manufacturers in other countries. If the manufacturers default, you will have problems suing somebody in another country. Your own unhappy customers will have no problems suing you, or reporting you to government agencies. Make sure that your profit margins are high enough to compensate you for these risks.
    Live fast. Die young. Leave a beautiful body of code.

  4. #4
    Join Date
    Aug 2012
    Location
    Barcelona/Spain
    Posts
    2

    Becoming A Reseller

    Our company signed an agreement with a manufacturer from Singapore, and now we are trying to develop and grow our business in this country. If someone has such experience, contact me please.

  5. #5
    Join Date
    Aug 2012
    Posts
    3
    A not so new way of selling products is dropshipping. I think that's what you want to do. If you've found a manufacturer that will ship direct to your customer that's a good thing. The only downside is your profit is less than if you carried and shipped the item yourself. Bulk orders always get a better deal on the price and is almost always the best way to go. money is tight, so maybe you can get a small amount of the item and build from there. Dropshipping is a good way to start, but that should be a starting point. buying and shipping yourself should be your next goal.

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