How to Start a Reselling Business in 2026: The Complete Step-by-Step Guide

You’ve probably heard the stories: someone finds a vintage jacket at Goodwill for $8 and sells it on eBay for $120. Or a college student clears $3,000 a month flipping electronics from local buy-sell-trade shops. These aren’t fairy tales. They’re real outcomes from people running real reselling businesses — and you can build one too.

The secondhand and resale market is projected to surpass $350 billion globally by the end of 2026. Consumer behavior has shifted permanently. Buyers actively seek pre-owned items for value, sustainability, and the thrill of finding something unique. Platforms like eBay, Mercari, Poshmark, and Facebook Marketplace have made it easier than ever to connect sellers with millions of buyers.

But let’s be honest upfront: reselling is a real business. It takes effort, consistency, and a willingness to learn. It’s not a get-rich-quick scheme, and anyone who tells you otherwise is selling you something. What it is — when approached with the right strategy — is one of the lowest-barrier, most flexible ways to build income on your own terms in 2026.

This guide covers everything from the initial decision to start, through legal setup, platform selection, pricing strategy, and building repeatable systems. Whether you want a side income of $500/month or a path to full-time self-employment, the fundamentals are the same. Let’s build yours.

Is Reselling Right for You? An Honest Self-Assessment

Before you spend a dollar on inventory, take a few minutes to honestly evaluate whether reselling fits your situation. Not everyone who tries reselling sticks with it — and that’s often because of a mismatch between expectations and reality.

Skills and Traits That Help You Succeed

You don’t need a business degree or retail experience. But certain traits give you an advantage:

• Curiosity about value — You notice brand names at thrift stores. You wonder what things are worth. You enjoy researching products.
• Patience — Some items sell in hours. Others sit for weeks or months. The business rewards people who can wait for the right buyer.
• Comfort with negotiation — Especially on platforms like Facebook Marketplace, buyers negotiate. You need to hold your ground without being combative.
• Attention to detail — Accurate descriptions, clean photos, correct measurements. Details drive sales and reduce returns.
• Basic customer service — Responding to questions promptly, handling issues professionally. Your reputation directly impacts sales.

Time Commitment: What’s Realistic?

These are realistic ranges, not guarantees. Your niche, pricing, and sourcing ability all factor in. Revenue is not profit — you’ll learn that distinction quickly.

Common Misconceptions Debunked

• “You just buy low and sell high — it’s easy money.” Buying low requires knowledge. Selling high requires good listings, the right platform, and patience. The “middle” — photographing, listing, storing, shipping — is the actual work.
• “I need a lot of money to start.” You can genuinely start with items you already own. Many successful resellers began by decluttering their closets.
• “The market is too saturated.” There are millions of buyers and infinite inventory. The resellers who struggle are usually the ones who don’t differentiate through better photos, descriptions, or niche knowledge.
• “You need to be on every platform.” Starting with one platform and mastering it outperforms spreading yourself thin across five.

Quick Self-Assessment Checklist

Give yourself one point for each statement that’s true:

• [ ] I enjoy browsing thrift stores, garage sales, or online marketplaces
• [ ] I’m comfortable learning new apps and platforms
• [ ] I can commit at least 5 hours per week consistently
• [ ] I handle rejection and lowball offers without taking it personally
• [ ] I have a space to store at least 20-30 items
• [ ] I’m willing to learn about shipping logistics
• [ ] I can wait 2-4 weeks (or longer) for items to sell
• [ ] I’m comfortable taking photos and writing descriptions

6-8 points: Reselling is a strong fit. You have the mindset and resources to succeed. 4-5 points: You can make it work, but address the gaps early to avoid frustration. Below 4: Consider whether the timing or circumstances are right — or start very small to test the waters.

Choosing Your Reselling Niche

One of the biggest mistakes new resellers make is trying to sell everything. When you buy anything that looks like a deal, you end up with a garage full of random items you don’t understand well enough to price, describe, or market effectively.

Niching down — at least initially — gives you three advantages:

1. You develop expertise faster. Learning to identify valuable brands in one category is far easier than learning five categories at once.
2. You source more efficiently. When you know exactly what you’re looking for at a thrift store, you move faster and make better decisions.
3. You build reputation. Buyers trust sellers who clearly know their category. Repeat customers become a real thing.

Top Niches for Beginner Resellers

Clothing is the most popular starting point because inventory is everywhere and entry costs are low. However, it requires learning brands, sizing, condition grading, and managing a high volume of lower-priced items.

Electronics sell fast but require testing, authentication knowledge (especially for phones/tablets), and careful condition descriptions to avoid returns.

Vintage and antiques offer the highest margins but require the longest learning curve and patience to find the right buyer.

💡 Pro Tip: Pick a niche where you already have some existing knowledge or genuine interest. If you’re into sneakers, start there. If your closet is full of clothes, start with clothing. Your personal knowledge is a competitive advantage — use it.

You don’t have to commit to one niche forever. Start with one, learn the fundamentals of reselling through it, and then expand into adjacent categories once you’ve built a rhythm.

For a detailed breakdown of the most profitable items to resell right now, check out our Best Things to Flip for Profit in 2026 guide.

Setting Up Your Business Legally

This section intimidates a lot of people, so let’s start with the most important thing: you don’t need to set up a legal entity on day one. If you’re selling personal items from around your house, you’re simply decluttering, not running a business. The IRS recognizes a distinction between occasional selling and business activity.

However, once you start buying inventory specifically to resell for profit — especially consistently — you’re operating a business, and you should set things up properly. Here’s the step-by-step.

When You Don’t Need Legal Setup (Yet)

You’re in “hobby” territory if:

• You’re selling personal items you bought for your own use
• You’re making occasional sales, not consistent weekly sales
• You haven’t bought inventory specifically to resell

Even in hobby territory, income is still technically taxable. But formal business registration isn’t necessary at this stage.

Step 1: Choose Your Business Structure

For most new resellers, the choice is between two structures:

Sole Proprietorship

• No paperwork to create — you are the business by default
• No separation between personal and business liability
• Report business income on Schedule C of your personal taxes
• Best for: Getting started, testing the waters, low-risk inventory

LLC (Limited Liability Company)

• Requires state filing (fees range from $50 to $500 depending on the state)
• Separates personal and business liability
• Same tax treatment as sole proprietorship unless you elect otherwise
• Best for: Once you’re consistently profiting $500+/month, holding valuable inventory, or selling on platforms where an LLC adds credibility

💡 Pro Tip: Don’t spend $500 on an LLC before you’ve made your first sale. Start as a sole proprietor, prove the concept, then formalize once you have consistent revenue.

Step 2: Get an EIN (Employer Identification Number)

An EIN is like a Social Security number for your business. It’s free from the IRS, takes about 5 minutes to get online at irs.gov, and is useful even as a sole proprietor because:

• You can use it instead of your SSN on tax forms
• You’ll need it to open a business bank account
• Wholesale suppliers often require one

Step 3: Obtain a Resale Certificate / Seller’s Permit

A resale certificate (sometimes called a seller’s permit or sales tax certificate) allows you to:

• Buy inventory without paying sales tax on it (since you’ll collect sales tax from the end buyer)
• Purchase from wholesale suppliers and liquidation companies

Requirements vary by state. Most states offer these for free or for a small fee ($10–$50). Search “[your state] resale certificate application” to find the right form.

Note: If you only sell on platforms like eBay or Mercari that handle sales tax collection (marketplace facilitator laws), you may not need to collect sales tax yourself. But having a resale certificate still helps with wholesale purchasing.

Step 4: Separate Your Finances

This is non-negotiable, even if you skip everything else:

• Open a separate bank account for your reselling business. Many banks offer free business checking. At minimum, open a separate personal checking account that you only use for reselling.
• Get a dedicated credit or debit card for all business purchases (inventory, supplies, shipping). This makes tax time dramatically easier and helps you track your actual costs.

Step 5: Understand Your Tax Obligations

Key tax facts for resellers:

• All net profit from reselling is taxable as self-employment income
• You’ll owe both income tax and self-employment tax (15.3%) on profits
• If you expect to owe more than $1,000 in taxes annually, the IRS expects quarterly estimated payments
• You can deduct business expenses: inventory costs (COGS), shipping supplies, mileage, platform fees, and more

For the complete breakdown of tax deductions available to resellers, see our Reseller Tax Deductions Guide. If you’ve received (or expect) a 1099-K from selling platforms, our 1099-K Tax Guide for Resellers explains exactly what to do.

Starting Capital: How Much Do You Really Need?

One of the best things about reselling is the genuinely low barrier to entry. You can start with almost nothing. Here’s what each level looks like realistically.

Tier 1: Bootstrap Start ($50–$200)

Your approach: Sell what you already own, then reinvest profits.

This is how most successful resellers actually started. Go through your closets, garage, storage bins, and junk drawers. Most people have $200–$1,000+ worth of sellable items they’re not using.

Tier 2: Comfortable Start ($500–$1,000)

Your approach: Consistent thrift sourcing plus basic operational setup.

Tier 3: Committed Start ($2,000–$5,000)

Your approach: Dedicated workspace, wholesale sourcing, and professional tools.

What to Spend Money on First

Spend on: A digital shipping scale ($20), poly mailers ($15 for 100), and inventory. These directly enable sales.

Don’t spend on: Logo design, business cards, a professional website, custom packaging, or expensive software. None of these matter until you have consistent sales. Use the free versions of everything at the start.

💡 Pro Tip: A good rule of thumb is the 50/30/20 reinvestment split — 50% of profits back into inventory, 30% into improving operations (supplies, tools), and 20% as your actual take-home pay. As you scale, you can adjust these ratios.

Before you buy inventory, use our Flip Profit Calculator to estimate your actual profit after platform fees, shipping, and cost of goods.

Choosing Your Selling Platforms

The platform you choose affects your fees, audience, shipping requirements, and daily workflow. Here’s a decision framework that cuts through the noise.

Platform Comparison for Beginners

Which Platform Should You Start On?

Start with ONE platform. Master it before expanding. Here’s how to decide:

• Selling clothing? Start with Poshmark if you want simplicity, or eBay if you want the largest audience.
• Selling locally (furniture, large items)? Facebook Marketplace is the obvious choice.
• Selling electronics, media, or general items? eBay or Mercari.
• Want the easiest possible start? Mercari. The interface is clean, listing is fast, and the fee structure is straightforward.
• Want the highest earning potential long-term? eBay. More complex, but the largest buyer base and most flexibility.

When to Expand to Multiple Platforms

Don’t crosslist until you can comfortably manage your current platform. Good signs you’re ready:

• You have 30+ active listings
• You’ve developed a consistent listing routine
• You have a system for tracking what’s listed where
• An item has been sitting for 30+ days on one platform

When you do expand, crosslisting (posting the same item on multiple platforms) increases your exposure. Just make sure you remove listings promptly when an item sells elsewhere.

Use our Platform Fee Calculator to compare what you’d net on the same item across different platforms. It can change your decision on where to list.

For platform-specific deep dives, we’ve created dedicated guides:

• How to Sell on eBay: Complete Beginner’s Guide
• How to Sell on Facebook Marketplace
• How to Sell on Poshmark

Your First Inventory: Where to Find It

You don’t need a special connection or wholesale account to find your first inventory. The best starting inventory is already around you.

Start at Home: The “House Flip”

Before you spend a single dollar, go through your home:

• Closets: Clothes, shoes, and accessories you haven’t worn in 6+ months
• Kitchen: Small appliances, specialty cookware, brand-name items still in packaging
• Garage/Storage: Old electronics, tools, sports equipment, collectibles
• Kids’ rooms: Outgrown clothes, toys, games, baby gear

Most households have 50–100+ sellable items. This is free inventory, and selling it teaches you the mechanics of listing, shipping, and customer interaction with zero financial risk.

Thrift Stores and Goodwill

Once you’ve sold through your house, thrift stores are the bread and butter of beginner reselling. Focus on:

• Brand names you recognize in clothing (start by looking up anything you find interesting)
• Hardcover books in specific categories (textbooks, art books, niche topics)
• Small electronics (test before buying if possible)
• Board games and puzzles (complete sets only)
• Kitchenware brands (Le Creuset, KitchenAid, Pyrex vintage)

💡 Pro Tip: Don’t buy anything at a thrift store without checking the price first. Pull out your phone, open Underpriced, and look up what the item actually sells for. The two minutes spent researching saves you from bad buys that sit in your storage unsold.

Other Beginner-Friendly Sourcing Channels

• Garage and yard sales — Best prices, especially late in the day when sellers want to clear out. See our guide on Best Items to Resell from Garage Sales.
• Facebook Marketplace free listings — People give away items constantly. Set alerts for “free” in your area.
• Friends and family — Offer to sell items for people in your network for a commission. Zero inventory cost.
• Online clearance — End-of-season clearance from major retailers can yield flippable inventory at deep discounts.

For an exhaustive walkthrough of every sourcing channel — including estate sales, liquidation pallets, wholesale, and retail arbitrage — check our Complete Guide to Sourcing Inventory for Reselling.

Pricing Your Items: Research-Based Strategy

Pricing is where beginners either leave money on the table or overprice items that sit forever. The fix is simple: base your pricing on data, not gut feeling.

How to Research Prices

The gold standard for pricing research is sold comps — actual completed sales of the same or very similar items. Here’s the process:

1. Search the item on eBay and filter by “Sold Items” — This shows what buyers actually paid, not what sellers are asking.
2. Look at the most recent 5-10 sold listings — Note the range, condition differences, and how long they were listed.
3. Check multiple platforms — An item might sell for $40 on eBay but $55 on Poshmark, or vice versa.
4. Note condition differences — New with tags vs. pre-owned vs. used with flaws all price very differently.

Use Underpriced to instantly look up what any item is worth based on real sold data across platforms. Instead of manually filtering through eBay’s sold listings, you get aggregated pricing data in seconds — which matters a lot when you’re standing in a thrift store deciding whether to buy.

For a detailed walkthrough of using eBay’s sold data, see our Guide to eBay Sold Listings for Price Research.

Pricing Strategy for Beginners

Common Pricing Mistakes

• Not accounting for fees and shipping. A $30 sale on eBay nets you roughly $24 after fees. If you paid $10 for the item and $5 in shipping supplies, your actual profit is $9 — not $20. Use our Break-Even Calculator to find your minimum selling price.
• Anchoring to what you paid. If you paid $15 for something and research shows it sells for $12, sell it for $12 and learn from the mistake. Holding it won’t change market value.
• Ignoring seasonal trends. Winter coats sell in September-November, not April. Plan accordingly.
• Racing to the bottom. Don’t undercut every other listing. Compete on photo quality, description detail, and seller reputation instead of just price.

💡 Pro Tip: For your first 20-30 items, lean toward pricing to sell rather than maximizing profit. Speed of sale teaches you more than holding out for top dollar. You’ll learn what works, build your feedback score, and generate cash to reinvest.

Creating Listings That Convert

Your listing is your storefront. Fortunately, you don’t need professional equipment — a smartphone, decent lighting, and attention to detail are enough to create listings that compete with anyone.

Photography Basics

• Natural light is your best friend. Photograph near a window during daytime. Avoid direct sunlight that creates harsh shadows.
• Clean, simple background. A white wall, a $10 foam board, or even a clean bedsheet works. Remove clutter.
• Multiple angles. Front, back, close-ups of tags/labels, any flaws. Show buyers exactly what they’re getting.
• Show scale. Include a common object or your hand for reference when size matters.
• Clean the item first. Steam clothes, wipe down electronics, remove dust. A clean item photographs better and sells for more.

Aim for 4-8 photos per listing. More photos generally mean more buyer confidence and fewer questions.

Title Formula

Your title is the single most important factor for search visibility. Use this formula:

[Brand] + [Item Name] + [Key Details] + [Size/Color] + [Condition]

Examples:

• “Nike Air Max 90 Running Shoes Men’s Size 10.5 White/Black Pre-Owned”
• “KitchenAid Classic Stand Mixer 4.5 Qt Onyx Black K45SSBOB - Tested Working”
• “Levi’s 501 Original Fit Jeans Men’s 32x30 Dark Wash Button Fly”

Don’t: Use ALL CAPS, excessive punctuation (!!!), or words like “LOOK!” or “L@@K.” These hurt more than they help and make your listing look unprofessional.

Description Essentials

Your description should answer every question a buyer might have:

1. What is the item? (Be specific — model, style, variant)
2. What condition is it in? (Be honest — describe flaws clearly)
3. What are the measurements/dimensions?
4. What’s included? (Accessories, original packaging, etc.)
5. Shipping details if not obvious

Keep it scannable with bullet points. Don’t write paragraphs when a list works better.

Item Specifics

On platforms like eBay, filling out item specifics (brand, size, color, material, etc.) directly impacts your search visibility. eBay’s algorithm favors listings with complete item specifics. Take the extra 2 minutes to fill these in — it’s one of the easiest ways to get more views.

For an in-depth photography tutorial, see our How to Photograph Items for Resale guide. For listing copy that converts, check out Writing Listings That Sell.

Shipping Fundamentals for New Resellers

Shipping feels overwhelming at first but quickly becomes routine. Here’s what you actually need to know to get started.

Carrier Basics

Free Supplies to Get You Started

• USPS Priority Mail boxes and envelopes — Order free at usps.com. Delivered to your door. Legal size flat rate, small flat rate box, and medium flat rate box cover most shipments.
• Poly mailers — Buy in bulk on eBay or Amazon. A pack of 100 costs about $10–$15.
• Reuse boxes and packing materials — Save boxes from your own online orders. Bubble wrap, air pillows, and packing paper are all reusable.

Shipping Station Setup on a Budget

All you really need:

1. Digital postal scale ($20 on Amazon) — Essential. Guessing weight costs you money.
2. Tape gun ($8) — Faster and cleaner than rolls.
3. Poly mailers in 2-3 sizes ($15–$25)
4. A few flat rate boxes from USPS (free)
5. Packing tape ($8 for a multi-pack)
6. Printer for labels (you probably have one — inkjet works fine)

Total: roughly $50–$75 to set up a functional shipping station.

Calculated vs. Flat Rate vs. Free Shipping

• Calculated shipping — The buyer pays actual shipping cost based on their location. Safe for you, transparent for them. Best when starting out.
• Flat rate — You set one shipping price regardless of location. Works well when you know your item fits in a USPS flat rate box.
• Free shipping — You build shipping cost into the item price. Increases click-through rates but requires accurate cost estimation. Better once you have experience.

💡 Pro Tip: Always ship within 1-2 business days of payment. Fast shipping earns positive reviews and improves your search ranking on most platforms. Build shipping into your daily or every-other-day routine.

For a complete comparison of shipping rates and strategies, check out Cheapest Shipping Options for Resellers and Where to Get Shipping Supplies for Less.

Tracking Your Finances from Day One

This is the section most beginners skip and most experienced resellers wish they hadn’t. Tracking your finances from the start saves you headaches, keeps you honest about your profitability, and makes tax season painless.

Why It Matters Immediately

Here’s a scenario that happens constantly: a reseller sells $3,000 worth of items in their first few months and feels great. Then they add up what they spent on inventory, shipping, supplies, and gas — and realize they actually profited $400. Without tracking, they had no idea.

Revenue is not profit. Repeat this until it’s automatic.

What to Track

At minimum, for every transaction:

• Date purchased and date sold
• Item description
• Cost of goods (what you paid)
• Selling price
• Platform fees
• Shipping cost (what you paid, not what the buyer paid)
• Net profit

Simple Tracking Options

Spreadsheet (Free) A Google Sheet or Excel spreadsheet is all most beginners need. Create columns for each item above. Add formulas to calculate fees and net profit automatically. This takes 1-2 minutes per sale.

Dedicated Apps As you scale, apps like AceBudget, Seller Ledger, or myResale can automate some of this. But don’t pay for software before you’ve proven you’ll use it consistently.

COGS (Cost of Goods Sold) Tracking

COGS is the total direct cost of the items you’ve sold — what you paid for inventory. This is your most important tax deduction as a reseller.

If you buy a lot of 10 shirts for $25, your COGS per shirt is $2.50. Track this per item, not per lot, because you’ll sell them individually.

Quarterly Tax Awareness

If your reselling business generates more than a few thousand dollars in annual profit, you should make quarterly estimated tax payments (due in April, June, September, and January of the following year). Failing to pay quarterly can result in penalties.

Set aside 25-30% of your net profit for taxes. Open a separate savings account for this money so you don’t accidentally spend it.

For a detailed guide on understanding your real margins after all costs, see our Reseller Profit Margin Guide. Use our ROI Calculator to evaluate whether a potential buy is worth your time and money.

Building Systems That Scale

The difference between a reseller who makes $500/month and one who makes $5,000/month usually isn’t that the latter works 10x harder. It’s that they’ve built systems — repeatable processes that reduce friction and let them move faster.

You don’t need complex systems on day one. But building good habits early makes scaling dramatically easier.

Inventory Management

When you have 10 listings, you can keep track in your head. At 50 listings, you need a system. Don’t wait until you’re drowning to build one.

• Physical organization: Use shelving, bins, or a dedicated closet. Organize by category or SKU number.
• SKU system: Assign each item a simple code (e.g., SH-001 for shoes item 1, EL-001 for electronics item 1). Write it on the storage bin/shelf and in your listing notes.
• Photo organization: Create folders on your phone or computer by date sourced or SKU. When an item sells, you can quickly find the listing photos.

Photography Workflow

Batch your photography. Instead of photographing one item at a time:

1. Set up your photo area once
2. Photograph all new inventory in a single session
3. Edit photos in batch (crop, adjust brightness)
4. Transfer to your computer/phone for listing

This is significantly faster than setting up and tearing down for each item.

Listing Routine

Develop a consistent listing schedule. Many successful resellers dedicate specific days to specific tasks:

• Sourcing days: Tuesday and Saturday morning thrift runs
• Photo and listing days: Wednesday and Sunday evenings
• Shipping days: Daily or every other day after sales

The specific schedule matters less than consistency. Finding a rhythm prevents the common trap of sourcing a ton of inventory that sits unphotographed and unlisted for weeks.

Reinvestment Strategy

In the early months, reinvest most of your profits back into inventory and operations. A common framework:

• Months 1-3: Reinvest 70-80% of profits into inventory
• Months 4-6: Reinvest 50-60%, start paying yourself consistently
• Months 7+: Find your sustainable ratio based on growth goals

The compounding effect of reinvestment is powerful. $200 in profit reinvested into inventory that doubles can become $400, then $800. This is how part-time reselling becomes a real income stream.

When to Automate

Don’t automate too early — you need to understand the manual process first. But once you’re doing 20+ sales per month, consider:

• Crosslisting tools to post items across multiple platforms simultaneously
• Shipping label software like PirateShip for discounted rates
• Repricing tools on eBay to stay competitive
• Inventory management apps to track across platforms

For a complete breakdown of the best tools for resellers at every stage, see our Reseller Tool Stack Guide.

30-60-90 Day Milestones

Having realistic expectations for your first three months prevents discouragement and keeps you on track. Here’s what a reasonable progression looks like.

Days 1-30: Learn the Mechanics

Goals:

• List your first 10-20 items (start with items from home)
• Make your first 3-10 sales
• Ship your first packages without issues
• Set up a basic tracking spreadsheet
• Visit 3-5 thrift stores and buy your first sourced inventory

What you’ll learn: How to use your chosen platform, what shipping actually involves, how to handle buyer messages, and what your process bottlenecks are.

Realistic revenue: $50–$300 (don’t stress about the number — you’re investing in learning)

Days 31-60: Find Your Groove

Goals:

• Maintain 25-50 active listings
• Develop a sourcing routine (weekly thrift runs)
• Improve your photography and listing quality
• Start identifying which items sell best for you
• Handle your first return or issue professionally

What you’ll learn: Which niches work for your market, how to spot good inventory faster, and what your actual profit margins look like when you account for everything.

Realistic revenue: $200–$800

Days 61-90: Build Momentum

Goals:

• Maintain 50-100 active listings
• Consistent weekly sourcing with a growing “eye” for value
• Your sell-through rate is improving
• You have a shipping routine that takes minimal thought
• You’re tracking all finances and understand your true margins

What you’ll learn: How to scale what’s working, when to drop items that aren’t selling, and whether this is a business you want to grow further.

Realistic revenue: $500–$1,500

These numbers assume 8-15 hours per week of effort. Your results will vary based on niche, market, and how aggressively you source and list.

💡 Pro Tip: The single biggest predictor of success in the first 90 days isn’t what you sell or where you sell it — it’s listing consistency. Resellers who list new items every week consistently outperform those who list in bursts and then disappear for weeks.

For a more detailed sprint plan for your first month, including daily action items, see our First $1,000 Reselling: 30-Day Action Plan.

Common Beginner Mistakes (and How to Avoid Them)

Every experienced reseller has made most of these mistakes. Learning from others’ errors saves you time and money.

1. Buying Without Researching

The mistake: Seeing something that “looks valuable” at a thrift store and buying it on instinct.

The fix: Always check sold comps before purchasing. Use Underpriced to look up items in real time. A 60-second price check can save you from a $15 item that’ll sit in your garage for six months.

2. Ignoring Fees in Profit Calculations

The mistake: Buying an item for $5, selling it for $20, and thinking you made $15.

The fix: Between platform fees (10-20%), payment processing, shipping costs, and packaging, your actual profit on that $20 sale might be $7-8. Always calculate net profit, not gross. Use our Platform Fee Calculator on every item.

3. Poor Photos

The mistake: Dark, blurry, cluttered photos taken quickly on a messy bed.

The fix: Good photos don’t require expensive equipment — just good lighting (near a window), a clean background, and 30 seconds of effort per shot. The difference in sell-through rate between bad and decent photos is dramatic.

4. Not Tracking Expenses

The mistake: Having no idea how much you’ve spent on inventory, supplies, and gas after three months of reselling.

The fix: Track every purchase from day one. Even a simple note in your phone’s Notes app is better than nothing. Upgrade to a spreadsheet within the first week.

5. Spreading Too Thin Across Platforms

The mistake: Creating accounts on eBay, Mercari, Poshmark, Depop, and Facebook Marketplace in week one, then struggling to manage any of them well.

The fix: Pick one platform. Master it. Get 30+ listings up and running smoothly. Then consider adding a second.

6. Analysis Paralysis

The mistake: Spending weeks researching the “perfect” niche, reading 47 blog posts, watching 200 YouTube videos, and never actually listing anything.

The fix: Sell something from your house this week. The best education in reselling comes from doing it. You’ll learn more from your first 10 sales than from 10 hours of research.

7. Buying Too Much Inventory Too Soon

The mistake: Getting excited after your first few sales and spending $500 at a thrift store in one trip, ending up with items you don’t know how to sell.

The fix: Scale your buying slowly. For every 10 items you list, allow yourself to source 10 more. Don’t let your unlisted inventory pile grow faster than your ability to process it.

8. Ignoring Customer Service

The mistake: Not responding to buyer questions for days, being defensive about issues, or ignoring negative feedback.

The fix: Respond to messages within a few hours when possible. Handle problems professionally — a partial refund or return accepted gracefully often leads to a revised positive review. Your reputation is your most valuable long-term asset.

9. Undervaluing Your Time

The mistake: Spending an hour listing an item that will profit $3.

The fix: As you gain experience, develop a minimum profit threshold. Many resellers won’t list anything that won’t make at least $10-15 in profit. Your time has value — factor it into your decisions.

10. Not Treating It Like a Business

The mistake: Keeping all proceeds in your personal checking account, not tracking inventory costs, and being surprised by a tax bill.

The fix: Even if you start small, treat your reselling operation like the business it is. Separate finances, track everything, and set aside money for taxes from the first sale.

Start Your Reselling Business Today

You now have the complete framework to start a reselling business in 2026. Not a vague idea of how it works — an actual, step-by-step blueprint covering legal setup, platform strategy, sourcing, pricing, listing, shipping, and financial tracking.

Here’s the most important thing to understand: the difference between people who build profitable reselling businesses and those who just think about it is action. You don’t need to do everything in this guide today. You need to do something today.

Your immediate next steps:

1. Today: Walk through your home and identify 5-10 items you no longer need
2. This week: Create an account on your chosen platform and list your first 3-5 items
3. This month: Make your first thrift store sourcing trip and list what you find
4. This quarter: Build toward 50+ active listings and your first consistent monthly profit

Download Underpriced to start checking prices before you buy, and explore our free reselling tools to calculate fees, track ROI, and make data-driven decisions from day one. Every tool is built by resellers, for resellers — because the best time to build smart habits is right at the beginning.

The secondhand market isn’t slowing down, buyer demand is growing, and the tools available to resellers in 2026 are better than they’ve ever been. Your future self will thank you for starting now.