Some resale stores make money, but expenses like rent and labor cut into profits. In 2016, used goods retailers made 3.3% profit before tax. A 10-person thrift store might make $11,880 annually. Managers earn around $52,000 per year.
Starting a Resale Business
To start a resale business, plan carefully and create a legal entity. Reselling is popular because startup costs are low compared to manufacturing. Online stores can be more profitable than physical stores, with profit margins often exceeding 35%.
- Resellers buy items wholesale or from retailers, then resell to customers.
- Products like furniture, art, rugs, and home decor tend to sell well.
- Tips for a successful online shop include getting a resale permit and finding a profitable niche like shoes.
Challenges in Reselling Clothes
Reselling clothes can be challenging. Major clothing resellers have lost money recently as processing unique items is labor-intensive. Investors worry some may never turn a profit. Making money from secondhand clothes is difficult.