This blog post is highly interesting because it is going to show another picture of ecommerce business. Reselling is an emerging concept in ecommerce. Let’s check, how reselling is changing whole scenario of ecommerce.
For example, a person starts a business and he sells his products or services to get money from customers. This process is called selling. Whereas, reselling is a business of purchasing goods with the purpose of selling to consumers.
Typically, the reselling model is common in super markets, general stores and cash and carry outlets. On emergence of internet, ecommerce stepped in. Wherein, Amazon has become giant of business to consumer (b2c) ecommerce.
Reselling has shifted from physical shops to ecommerce stores whether they are on Amazon, Ali Express, Daraz, Lazada or Shopify. Almost all the sellers on Amazon, Daraz are reselling products. They don’t manufacture goods, instead they purchase from their suppliers.
Why reselling business started on social media
But after Covid-19, ecommerce sees a boost and new horizon of selling via social media like Instagram, Facebook, Pinterest and WhatsApp. Instagram provides exciting features to build online shop and this small business is commonly known as Instashop. You can create Facebook shop. You can also publish pins of your products on Pinterest. Business WhatsApp account has special feature to build catalogue of your products.
Another argument goes in favour of reselling. Physical shop owners are usually reluctant to sell online. But when they see growth in online shops, they are trying to switch. But problem is here, shop owners have no or little sense of use of social media. So resellers are catching this opportunity. Therefore, they buy goods from shops. Then goods are sold online using Instashops, Facebook shops and Pinterest product pins.
In Pakistan, famous brands that raise from social media are Astore, Miss Rose, K-linen etc. It is the same case with other countries. People are selling on social media thus creating their personal brands. Famous brands have now started selling on Instagram and Facebook. But Instagram is taking the lead because of influencers. Costs involve in reselling business are purchasing, marketing and purchasing.
How is reselling connected with ecommerce?
People running online shops on social media accounts. It requires small amount of investment. They build connections with their suppliers. Suppliers and wholesalers send pictures to the resellers. Resellers upload photographs to their social media accounts. When consumer places an online order, reseller purchases item from his supplier and delivers it to consumer. And consumers pay via online options (Skrill, Easypaisa, JazzCash, PayPal, Payoneer etc.) or cash on delivery.
Challenges which a reselling business could face
Since resellers run their business via social media, they can face two major challenges (1) reaching to the potential customers and (2) maintaining the quality. Organic growth on Facebook is almost impossible. With regular posting, paid marketing, advertisement and engaging with viewers help to grow on social media.
Amazon, Daraz and Lazada have already strict policies that ensure quality. Instagram and Facebook have their ecommerce policies but they have no restriction on product categories. Here, quality maintenance lies with reseller.
Reasons behind the growth of reselling business
Let’s take a look on reasons why social media ecommerce business is growing.
- Third party payment solution providers are assisting resellers to receive payments from their customers.
- Third party logistics partners are readily available to give logistics support and also facilitating cash on delivery mode.
- Goods are readily available with wholesalers and manufacturers.
- Facebook, Instagram, WhatsApp and Pinterest don’t impose any commission on sales. Reseller just runs marketing campaigns on social media.
Closing comments
With passage of time, changes are going rapid. Back in 10 years ecommerce websites emerged. Aftermath of Covid-19, selling on Instagram became so fast. Sellers switched from Amazon to social media. Selling on Amazon requires specialized skills. Sellers hire virtual assistants.
Whereas, selling on social media does not require any technical skills. You need to just upload pictures, post regularly, run ads, reply to queries and engage with audience on consistent basis. WhatsApp, Instagram and Pinterest are exponentially growing in ecommerce because of simplicity they are offering.
This blog post ends here. It is not possible to cover topic of “selling / reselling on social media” in single blog. Therefore, we are breaking down whole topic in different blogs. Here we are sharing links of related blog posts.
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Check out related blogs.
- Build ecommerce reselling business using Instagram
- Start reselling using WhatsApp
- Earn money from Facebook Shop
- Minimum features required for Insta Shop
