Sean: What are the advantages of a reseller business?

The advantage is mostly it depends on the reseller business that you've got. So if you're a consigner, you have a lot of advantage because you don't need to pony up capital at the get go. You just sell and sell and get a part of the profit. But if you're an outright reseller, that means you buy the inventory outright, that's a lot more risk for you.

But if you're confident about the product that is going to sell well, buying it outright is better because it's cheaper. You get to have a better deal when you're going to buy everything. So going back to my example earlier, if I'm going to be selling titanium mugs and I'm sure it's going to sell well and I have a supplier, maybe the manufacturer is supplying me or I import it from China.

If I buy it outright in bulk I get a much bigger discount, which means if I resell it, I can sell it at a bigger profit margin. But if I'm a consigner, what that means is I don't buy it outright, I just display it in my shop or just sell it online. Usually that means you're a dropshipper and you get a smaller percentage of the sales.

But that's a lot less risk for you still, because you don't need to pony up that capital to buy a lot of the items. So there are a lot of advantages if you're just reselling. I'd say if you're starting out, go for the consignor route, because it's a lot less risky and you get a better idea of what things you could sell well and what things are pretty slow for you.

I'm not sure if the question is going to be compared to anything, because it doesn't stay there. But maybe one of the ways to look at the question is: What are the advantages of a reseller business vs starting your own brand and selling your own products?

Starting your own brand and selling your own products is an uphill climb. But when you are on the top of the hill, then that hill is protecting you from competition because you've got your brand going on for you if you're able to do it well.

So there are pros and cons. The longer game would be starting your own brand and starting your own product lines. That's definitely the longer game. That's a lot more profitable if you got things going good for you, but it's also a lot riskier. It's a lot riskier.

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