What Is a Resale Business as a Side Hustle? A Guide to Getting Started and Tips for Success

1. What is a resale business?  

A resale business is an activity in which you purchase goods and then resell them at a higher price to make a profit.

The key is to accurately assess the value of the product and list it at the right price.

It also covers a wide range of product categories, including electronics, clothing, books, and collectibles.

It has become increasingly popular as a side hustle that anyone can easily start as long as they have internet access.

In particular, by utilizing online marketplaces (e.g., eBay, Mercari, Amazon), you can easily engage in reselling activities with a wide variety of products.

2. Side Hustles That Make Use of Free Time  

The resale business is an attractive side hustle, especially for those who want to make effective use of their free time.

This is because it can be pursued flexibly alongside a full-time job, school, or family responsibilities.

Here are the key points to keep in mind when running a resale business as a side hustle:

Time Management

Time management is crucial for maximizing results within a limited timeframe.

The key to success lies in efficiently handling tasks such as product research, sourcing, listing items, and customer service.

Whether it’s during your commute, breaks, or before bed, you can handle these tasks anywhere as long as you have an internet connection, so make the most of your spare time.

Research and Selection

It is important to conduct market research to identify high-margin products and niche markets with demand, even if they are small in scale.

Rather than simply chasing trends, selecting products from your own unique perspective is the way to differentiate yourself in a highly competitive market.

Utilizing Online Tools

You can use your time effectively by utilizing online resale platforms, tools for finding suppliers, and price comparison sites.

Additionally, using social media and online advertising for sales promotion is another way to increase revenue.

Consistency

By staying consistent, you can gradually grow your business by building on small successes.

Furthermore, learning from your failures allows you to develop better strategies.

Rather than giving up because of a failure, it’s important to deepen your learning by staying the course.

The resale business is one of the business models you can start with low risk.

By practicing effective time management, conducting market research, and utilizing the right tools, you can significantly increase your chances of success as a side hustle.

1. Start by aiming for 30,000 yen a month  

When starting a resale business, many people set “earning 30,000 yen a month” as their initial goal.

This initial goal serves as a motivator when taking on a new side hustle, and it’s also the first step toward deepening your understanding of how reselling works and the market.

The figure of 30,000 yen per month is achievable, yet it also serves as a benchmark for gauging the progress of your business.

To reach this goal, let’s proceed with a systematic approach.

2. Practical Steps to Achieve Your Goal  

The first step is market research.

Identify which products are in demand and which are most likely to generate a profit.

At this stage, consider competitors’ pricing, market demand trends, and seasonal fluctuations in demand.

Next is procurement.

To maximize profits, you need to source products at the lowest possible price.

You can find products from various sources, such as wholesale markets, online auctions, and clearance sales.

How you sell your products is also important.

You can sell products through various channels, such as online marketplaces, your own website, and social media.

When setting your selling price, you need to consider market prices and find a price that ensures a reasonable profit margin based on the difference between the selling price and the purchase price.

As a reference, the standard profit margin for reselling is said to be around 20%.

It is also important to prioritize customer service—such as fast shipping, clear return policies, and prompt responses to inquiries—to enhance customer satisfaction.

The first few months may require some trial and error, but as you gain experience, you’ll be able to determine which methods are most effective.

It is also important not to stick rigidly to a single approach, but to flexibly adjust your methods in response to market changes.

If you can earn 30,000 yen a month, using that as a stepping stone to pursue even bigger goals is not just a dream.

1. Advantages of the Resale Business    

One of the advantages of this business model is that it requires relatively little initial investment.

You can start with a small amount of inventory and gradually expand your business. Additionally, especially when operating online, you have the flexibility to run your business from anywhere and at your own pace.

Furthermore, the potential to generate high profits through careful product selection and pricing is a major draw.

Furthermore, because you can respond quickly to fads and trends, you can stay on top of the latest information and sell products that meet market demand.

2. Managing Challenges and Risks    

However, the resale business also comes with challenges and risks commensurate with its appeal.

Reselling popular products is highly competitive, and profit margins can be squeezed by price competition.

Furthermore, market demand is constantly fluctuating, and there is a risk that products selling well today may stop selling tomorrow.

Furthermore, issues related to product quality and shipping directly impact customer satisfaction and significantly affect the business’s reputation.

Furthermore, the resale of certain products may be subject to legal regulations, and even if you are unaware of them, you could face legal issues.

1. Domestic Resale

Domestic resale refers to a business model in which goods are purchased in the domestic market and resold within the same domestic market.

Advantages include the absence of language barriers, relatively low shipping costs, and short delivery times.

Thrift stores, clearance sales, and online auction sites are popular sources for sourcing goods domestically.

2. Overseas Import Resale  

Overseas import resale is a model where goods are sourced from overseas markets and sold domestically.

The appeal of this resale model lies in the ability to source products that are hard to find domestically and to generate high profits by leveraging price differences.

However, you may face challenges such as language barriers, high shipping costs, long delivery times, and import duties.

It is essential to find reliable overseas suppliers and have knowledge of import regulations and tariffs.

With the import agency "Hubbuyer for Sourcing from China," all services are available in Japanese, and you can take advantage of low-cost international shipping.

In addition, our professional staff, with extensive import experience, provides personalized support to assist your business with import and sales.

3. Overseas Export Resale    

Overseas export resale refers to a business model where goods purchased domestically are sold in overseas markets.

Japanese products are popular in overseas markets, where high quality and uniqueness are highly valued.

However, this requires an understanding of overseas consumer needs, management of international logistics, and the ability to communicate in foreign languages.

Collaboration with e-commerce platforms targeting overseas markets and logistics companies with expertise in international trade is essential.

1. Product Research Based on Market Needs    

Thorough product research is essential to understanding market needs.

This includes trend analysis, reviewing consumer feedback, and monitoring competitors’ pricing strategies.

You must also pay attention to the possibility of a sudden surge in demand for products related to seasonal trends or specific events, and remain constantly attuned to market trends.

For example, demand for Halloween costumes and accessories tends to spike right before the holiday.

One way to identify high-demand products and niche markets is to utilize research tools, social media, and data from online marketplaces.

2. Sourcing Methods That Lead to Cost Reduction

To reduce procurement costs, consider purchasing in bulk at wholesale prices, taking advantage of clearance sales and outlet items, or negotiating lower prices with suppliers.

Also, be sure to calculate the total cost—including shipping fees and transaction fees—and factor it into your final profit calculations.

1. The Appeal of the Chinese Market    

Due to its sheer size and the development of its manufacturing sector, the Chinese market has become an attractive sourcing destination for resellers worldwide.

China is often referred to as the “world’s factory,” where a wide range of products are manufactured at low cost.

This allows resellers to source products at low prices and generate high profits by selling them in other markets.

Additionally, Chinese manufacturers accommodate small-lot production, making it easy for even small-scale businesses to get started—another key attraction.

2. Sourcing on Alibaba

Alibaba is China’s largest B2B (Business-to-Business) online marketplace and is used by resellers worldwide.

The biggest advantage of using Alibaba is the ability to source a wide range of products directly from manufacturers.

This allows you to bypass middlemen and purchase goods at lower prices.

Additionally, since you can negotiate directly with suppliers on Alibaba, you can customize transaction terms such as price, minimum order quantity, payment terms, and shipping options.

3. Sourcing on Taobao

Taobao is China’s largest C2C (Consumer-to-Consumer) and B2C (Business-to-Consumer) online marketplace, offering a vast selection of products for general consumers.

The appeal of sourcing from Taobao lies in the fact that consumer-oriented products can be obtained at very low prices.

You can also discover trendy and unique products, and resell them in markets outside of China to earn high profits.

However, since Chinese is the primary language on Taobao, there is a language barrier when using the site and negotiating with suppliers.

Therefore, when using Taobao, it is important to utilize an agency service that supports Chinese or to collaborate with a partner who understands Chinese.

4. Make Effective Use of Chinese Import Agents  

Import agents are service providers that handle the entire process of sourcing products and importing them on your behalf.

Using their services can significantly reduce the difficulties associated with language, legal regulations, and logistics in the import business.

Here are the main benefits of using an agent, based on the services offered by the Chinese import agent "Hubbuyer."

Overcoming the Language Barrier

Negotiations and contracts with Chinese suppliers are often conducted in Chinese, making the language barrier a major obstacle.

Hubbuyer’s staff communicates with business owners in Japanese and negotiates with suppliers in Chinese.

This removes the language barrier and ensures smooth communication between you and the suppliers.

Simplifying Import Procedures

We handle complex import procedures, such as customs duties and import permits, on your behalf.

This significantly simplifies the import process, saving you time and effort.

Quality Control

Ensuring quality for the Japanese market is particularly important for overseas products.

With hubbuyer, we can conduct quality inspections locally in China before the goods are shipped.

Returning goods after they arrive in Japan is quite difficult and involves significant time and expense, so it is better to handle this in China.

Logistics Optimization

Selecting the optimal logistics route and reducing shipping costs are also key roles of an import agent.

At hubbuyer, thanks to our special business partnerships with shipping carriers, we can offer rates significantly lower than standard prices.

We also handle a wide range of shipping methods, from air freight to sea freight, allowing us to shorten delivery times and reduce costs to meet your business needs.

Risk Management

Import agents mitigate risks arising from differences in business practices and legal regulations.

If there are any risks associated with the imported goods, our experienced staff will inform you in advance.

Furthermore, even if unforeseen circumstances arise, hubbuyer will take appropriate measures, allowing you to proceed with your import business with peace of mind.

1. Import Business and Legal Regulations

When conducting import business, it is essential to pay close attention to the laws and regulations of the target country.

This includes checking for prohibited import items, complying with safety and health standards, and respecting intellectual property rights.

For example, there may be strict regulations on imports from certain countries, and attempting to import goods in violation of these regulations carries the risk of fines or import bans.

Additionally, when reselling brand-name goods, great care must be taken, as handling counterfeit or imitation products may infringe on intellectual property rights.

2. Taxes and Tax Filing

Income generated from reselling is subject to taxation as taxable income.

You must maintain accurate records of sales, purchases, and expenses to calculate the appropriate taxes.

You are also required to file an annual tax return based on your annual income and pay the necessary taxes.

When filing your tax return, you can reduce your tax burden by properly claiming business-related expenses.

3. Balancing with Your Main Job

In many cases, a resale business is conducted alongside one’s primary job.

For this reason, you must manage the balance with your main job.

In particular, you should verify whether your main employer’s work rules or contract prohibit side jobs, or if you are required to notify the company when engaging in a side business.

You should also be careful to manage the time spent on your side business so that it does not interfere with your main job.

1. Success Stories from the Field  

Many resellers have implemented excellent practices in pricing strategy, quality control, and customer service, achieving consistent customer satisfaction.

As a specific example, we’ll introduce the resale of handmade accessories.

Kyoko worked full-time in an office while making handmade accessories as a hobby.

She then decided to start a side business reselling accessories in her spare time.

Anko started by showing the accessories she made to her friends and family to get their feedback.

She then began selling online on a small scale using Instagram and Etsy.

Anko prioritized social media marketing and direct communication with customers.

By taking the time to photograph her products, writing detailed descriptions, and actively engaging with her followers, she gradually began to attract attention.

She also regularly released new designs tailored to seasonal events and trends to encourage repeat business.

Once her business was up and running, Kyoko began importing unique beads and materials from overseas to create one-of-a-kind accessories brimming with originality.

Since she wasn’t familiar with the complexities of importing, she used an import agent to source materials and handle quality inspections and import procedures.

This further differentiated her products and enabled her to significantly increase sales.

Today, Kyoko’s accessory brand has grown to receive high acclaim both domestically and internationally.

What began as a side business has now become one of her primary sources of income, and she has realized her dream of turning her hobby into a career.

This case study illustrates the process of turning a hobby and passion into a side business and steadily expanding it.

The keys to her success were a commitment to quality, marketing strategies, communication with customers, and, above all, persistence.

2. Step-by-Step Strategies for Business Expansion  

Expanding a resale business requires strategic planning and phased execution.

In the initial stages, start with small-scale pilot projects and gradually scale up while monitoring market response.

When expanding the business, options include entering new markets, expanding the product lineup, and diversifying sales channels.

It is also important to strengthen the business’s foundation by streamlining operations, implementing automation, and building a team.

To scale up the business, continuous monitoring of market trends, in-depth analysis of customer needs, and the effective allocation of management resources are essential.

What did you think?

The resale business is a field where creativity and hard work pay off.

No special qualifications are required to get started, but understanding the market, sourcing the right products, and implementing efficient sales strategies are essential for success.

We sincerely hope this article serves as your first step into the reselling business and that all entrepreneurs who approach it with passion will achieve their goals—and even surpass them.

The content of this article was researched and compiled independently by hubbuyer. We hope you find it helpful.

Leave your Alibaba and Taobao sourcing, as well as FBA direct shipping, to hubbuyer.

hubbuyer has offices in both Japan and China, and our mission is to handle all operations within China and deliver goods to Japan (including FBA direct shipping) on behalf of our business partners.

If you are considering importing and selling products from China, we encourage you to use hubbuyer’s services.