Can You Legally Buy and Resell For Profit?

If you enjoy visiting dig bin stores and liquidation stores, odds are you have found some items that are worth more than they cost to purchase.  Many people supplement their income or even make their whole living purchasing items and reselling them.  Popular online marketplaces to resell on are Amazon, eBay, Poshmark, Facebook Marketplace, and Mercari.  Selling at flea markets or garage sales is also a possibility.

So, can you legally buy and resell for profit?  Yes, you definitely can.  However, as with anything, there may be a few bumps along the road.  Selling online may be difficult with some categories and brand restrictions. It can take some time and effort to get approved to sell in certain categories. Some brands do not like resellers and will send scary looking cease and desist letters. If reselling on eBay, it is almost inevitable that you’ll get a VERO eventually. It is a good idea to research and keep on top of trends and which brands dislike resellers or come down tough on accidentally using their brand name.

Choosing the right items to sell is important and can be difficult. Items may be bulky, heavy, or breakable which is more difficult than selling lighter, smaller items.  With time, experience, and research, knowing which items are good to resell and which are too much work will become second nature. Experience will also help you quickly and accurately identify products in your chosen selling niches.

Make sure you keep good records when reselling items.  You will want to deduct purchase costs from your profits come tax time.  You also will want to track other things – some examples may be shipping costs, fees, mileage on your car, etc.

Even though it can be difficult at times, you can legally buy and resell items for profit. Many people make their entire living buying items and reselling them. If you are just starting out, do not lose hope as there can be a big learning curve. As time progresses, learning the ins and outs of reselling gets much easier.

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