Start A Secondhand Products Business - Business Ideas

Updated: September 15th, 2022
Start A Secondhand Products Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

The rise of new markets in which products and resources are re-used and redistributed has opened entrepreneurs' opportunities. A second-hand business involves trading previously owned or used products within a B2C, C2C, or B2B business model.

To start a second-hand items business, identify a niche and source of your second-hand items. You can create a website and list the items on eBay or social media such as a Facebook marketplace.

Starting a secondhand products business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell secondhand products, or selling secondhand products online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$12.6B
starting costs
$13.7K
gross margin
40%
time to build
210 days
growth
Organic social media
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Inventory Expenses

$350

$14,750

Software Expenses

$150

$2,794

Website Costs

$13

$215

Advertising & Marketing Costs

$0

$2,450

Total Startup Costs

$513

$27,209

Successful Businesses

Business URL Rank

Patagonia

patagonia.com

4,461

Herman Miller

hermanmiller.com

11,525

KEH

keh.com

37,718

Adsnity.com

adsnity.com

46,379

DotMed

dotmed.com

52,734

Secondhandbazaar

secondhandbazaar.in

109,797

BUYANDSELLPH.COM

buyandsellph.com

170,234

Second Use

seconduse.com

210,807

Med Wow

medwow.com

227,659

Second Hand Mall

secondhandmall.com

353,282

Importers Directory

importershub.com

476,432

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Little startup costs required

The cost to start a secondhand products business costs significantly less money than most businesses, ranging anywhere from 12 to 27,209.

Rewarding work

Starting a secondhand products business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Traffic to your website

A secondhand products business gives people a reason to visit your website and to keep coming back to you!

Cons Description

Crowded Space

Competition is high when it comes to your secondhand products business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Security Issues

With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.

Lack of benefits

With a secondhand products business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

Isolation

Often times, as a secondhand products business, you typically work alone and do not have much face-to-face interaction with other team members.

Taxes

As a secondhand products business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

    Learn more about affiliate program ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜