A capital of a business could be the main factor when it comes to deciding what product is to be sold. This is also the case with buying and selling items. Expensive products like cars and houses would surely entail millions of dollars to have a decent start in the market. But fret not if you’re planning to start small. There are goods that you can buy and sell with a low capital if ever you’re asking what should I buy and sell with a $5k buying budget.
Five grand is already a handsome cash on hand for a buying and selling business. You can already purchase large inventories of clothing, electronic products, and video games on this range. But the choice of the product largely depends on your knowledge and inclination.
On this post, we’ll discuss these three products that you can choose for your buy and sell business. These three are usually low in capital and will yield continuous profits and many capital turns per year.
Before we dive into the products, it’s important to factor in other expenses that will add up to your $5k budget. Here are some:
Depending on the hosting service, this may range from $4 up to $50 for some platforms.
Credit card processor
If you’re planning to accept payments via credit card, you should install a processor on your website. Most of the time, these are free to install but it will charge a certain percentage per transaction.
The likes of Shopify, WooCommerce, and Wix offer an online shopping platform. If you’re starting from scratch, Shopify and Wix are the best options while WooCommerce is for those with an existing WordPress site.
Aside from these, there are other factors that will affect the product of choice regarding your question what should I buy and sell with a $5k buying budget.
Minimum Quantity Order
Your capital of $5,000 is actually big enough for most minimum quantity orders of products. You can wholesale clothes, video games, consoles, and other electronic products on this money. However, keep in mind that the more money you invest in inventories, the higher the risk that you’ll face.
It’s best to start with a smaller chunk of your capital, say $1,000. This way, you have remaining assets in case you experience profit losses on your products. Just keep in mind that this shouldn’t be a hit-and-miss phase. Otherwise, you’ll waste your entire capital.
Local vendors vs. China imports
Local suppliers would surely give lower price paired with fast delivery of the goods in your storage area. With that, you can let about $700 off the window on your first inventories. You can already set up your own delivery service, personnel, warehouse, and office in the comfort of your five grand.
When it comes to China imports, it’s safe to invest up to 1k of your initial five thousand budget. This can cover pallets of the three mentioned products that you can start with. Keep in mind that importing products would take time especially for custom-made clothes. So what should I buy and sell with a $5k buying budget? You have the answer now.
The problem with these three mentioned products is the competition that you have to break through. Buying and selling clothing is a cut-throat industry with the ever-changing fashion sense among customers as well as the tons of designs that you have to choose from.
In terms of video games, you have to be in the know of the latest releases. Buyers usually stay in tune with the new versions of their favorite games. This is your opportunity to make a continuous profit by securing the first inventories possible. The same goes for electronic products.
As much as possible, never buy and sell knock-off products no matter how cheap and durable they appear. Knock-off products are no good.
In buying and selling clothing, you first have to determine what niche you want to stick to. There are the common shirts, couture, kids, and more designs. You have to base the choice on the demand of your consumers.
What should I buy and sell with a $5k buying budget? It’s more than enough to jumpstart your clothing business. Some online businesses make up to $100,000 per year just by selling unique pieces of clothes and you can achieve this in time if you know how to maximize calculated risks. If you want to make a stream of profit, you should have a large inventory of pieces that you think will sell out.
Electronic products like appliances and gadgets are one of the most demanding goods to store. It entails a secure place to maintain its quality and avoid its circuits from frying in the heat. This product is also tied to the demand and upgrades so you have to be on the hook with your supplier about the latest versions.
Somehow, consumers don’t buy tons of electronic products the way they would have a spree on clothes. The key here is getting premium models that will attract a potential buyer to place a purchase. Be reminded of the competition that you have to deal with on this product.
If you want a fast-paced product that will keep up with your personality, you can choose to buy and sell video games. This is the best option if you are a fan of playing these products as you’ll have easier time marketing it to your customers. Just keep in mind that video game prices could be slashed by $10 after two months upon its release. Still, quite a good choice if you have the market on your side.
So you ask: what should I buy and sell with a $5k buying budget? Clothing, video games, and electronic products are good options for such capital. These products are proven to yield profits as well as become a continuous source of income. Have you considered any product for your buy and sell business? Let us know below!