10 Things to keep in mind before becoming a digital product reseller

calendar_today Jan 4, 2023| schedule 27 MIN READ


Do you know what is one of the best products to sell online? Digital products! Yes, you heard it right! Digital products start from music to eBooks to chatbots. No one can touch, hold or test digital products, but everyone wants them. Due to their increase in popularity and ease of distribution, many people build their businesses around these goods. These businesses launch digital products line and become digital product resellers.

Digital product resellers can sell the same product created only once to different customers. You don't need inventory replenishment, ideal creativities for any client. The best point is that it requires less maintenance and is more cost-effective.

So, are you on your way to becoming a digital product reseller? Recent digital transformation has made a massive surge in the enterprises to resell products on the Internet. New or old, you need to know about reselling before embracing this journey,

Before becoming a digital product reseller, continue reading to discover ten things to remember.

What does Reseller mean?

Reselling is buying products from producers, wholesalers, and retailers and reselling them to one's clientele. This company specializes in mass-produced goods that may effectively be advertised and marketed to a specific audience niche.

According to their business strategy, resellers typically don't require a large warehouse to manage and store goods or sell one or more product categories.

This industry might be very tempting for business owners who are good at sales and marketing. Additionally, the ability of the Reseller to add value to the items relative to the source is necessary for the success of the online reselling company. It might be customer support, deals, simple accessibility, etc.

Although reselling is a straightforward internet company concept and easier to carry out, the market is competitive. It necessitates innovative approaches to attract and keep clients.

Reselling also provides various advantages and may be a successful business strategy, mainly if you support your venture with in-depth market research. 

What are Digital Products?

A digital product is an immaterial asset or piece of media that may be continually sold and disseminated online without the requirement for inventory restocking. These goods frequently take the form of files that can be downloaded or streamed, including MP3s, PDFs, movies, plug-ins, and MP3s. 

Pros and Cons of Becoming a Digital Products Seller

Digital products are very appealing to sell since they offer numerous benefits.

  1. Low overhead expenses: You won't need to keep inventory or pay for delivery.
  2. Extremely high-profit margins: Since there is no ongoing cost of products, most sales are yours as earnings.
  3. Possibility of automation: Orders may be delivered promptly, allowing you to handle fulfillment with minimal manual labor.
  4. Flexible items: You may provide free products to expand your email list. You can charge a monthly fee to access premium digital material or sell licenses to utilize your digital goods. There are several ways you may incorporate digital items into your company.
  5. Save time: You don't need to maintain or source inventory when you offer digital goods. Additionally, logistics and shipping are not your concerns.
  6. Scalable: Digital items can be scaled indefinitely. The difference between supplying ten units daily and delivering 10,000 units daily is negligibly small. (However, when your business grows, you'll need to recruit more customer service agents and modernize your website to manage the influx of visitors.)
  7. Automation Potential: You can automate the distribution of digital products relatively easily, freeing up your time to concentrate on expanding your business.
  8. Chances: Before COVID-19, e-learning was expanding quickly, and today more individuals than ever are working and studying from home. As a result, it is anticipated that the e-learning sector will be worth a staggering $374 billion by 2026.

But the digital products also come with specific challenges you'll need to watch out for:

  1. Free material competes with what you're selling: Customers can undoubtedly locate free alternatives to your digital items. To compete, you'll need to choose your target market wisely, provide top value with your items, and establish your brand.
  2. Vulnerable to theft and piracy: You must take steps and lower these risks by using the appropriate instruments to safeguard your products.
  3. Some limitations on selling methods: For instance, Facebook and Instagram's commerce policies require you to use their sales channels if you want to sell real goods.
  4. Rivalry: Since selling digital goods is simple. There is sometimes fierce competition. Additionally, you'll probably face competition from people giving out identifying information if you decide to sell anything.
  5. Piracy: You should implement security measures because it's simple for thieves to steal and sell digital goods.

10 Things to keep in mind before becoming a digital products reseller


Finding the best strategy for a firm requires having a thorough awareness of the market and keen insight into consumer behavior. Begin in with understanding the problem, develop product awareness, and analyze data insights for each enterprise. Research makes this possible, which may be generally categorized into three domains.

Research into the sector is necessary to comprehend its growth trajectory, the best-selling platforms, the items that rule the market, and the most current developments.

Analyzing competitors' offerings, prices, and market performance to determine what works best and what may be improved

To understand the market for your product, your target market, the growth potential, and the demographics and psychographics, you must conduct category research.

Unique branding

In the intense market rivalry, developing distinctive branding that sets your company apart from the competitors is essential. It's important to have strong branding since it leaves a positive impression on your clients and consumers and lets them know what to anticipate from you.

The organization of your company's customer-facing operations is a critical component of branding. The website design, content, advertising, print or packaging, website design, logo, colors, and fonts should all be consistent. Through services like Fiverr, those not skilled in design work may hire freelancers to complete the assignment.

The determine the following aspects of your company to develop your brand:

  1. Decide on your company's mission.
  2. Recognize the kind of consumer you are dealing with.
  3. Identify the brand's mission.
  4. List the features and advantages your brand offers.

Identify a Painful Problem to Solve

It's time to shift gears and examine your ideas once you've compiled a sizable list. Think carefully about the issue that each suggestion addresses as you go forward.

For instance, if you aim to educate people on how to exercise at home without any special equipment, you will assist them in improving their health. Further boosting their self-esteem and saving them time and money they would otherwise spend at the gym or with a personal trainer.

Your digital product will be simpler to promote and sell if it solves a significant and unpleasant issue.

Therefore, order them from most painful to least painful after determining the issues each of your suggestions addresses. Then, pick a solution to one of the most problematic issues.

Networking with business communities

Request opinions on the loop from your friends and followers. When you initially launch a firm selling digital goods, they make up half your audience. Increase the size of your online network and keep them updated before releasing a new product.

Join business forums to learn about various business strategies and identify the best online storefront for your digital goods.

The eCommerce Platform

You need a reliable eCommerce hosting platform if you plan to launch an online business. Although there are numerous readily available eCommerce platforms, choosing the best one takes knowledge of all the capabilities they provide. Examines pricing, scalability, uptime, and various extra services the platforms offer. The look of your store is also governed by the platform you choose. As a result, selecting the platform happens before even creating it.

It would help if you had a thorough guide to choosing the best eCommerce platform because many excellent ones are available. Our comprehensive guide to the best eCommerce platforms for 2021 will assist you in making the correct decision. 

Product sourcing

Before making plans for a firm's other areas, product sourcing will involve meeting with numerous vendors, inspecting the goods, performing quality checks, etc.

To ensure that the orders reach you or your clients on time, starting the logistics support process after choosing your providers is crucial.

The following are the simple methods for finding products:

  1. Local artists offering one-of-a-kind works of art
  2. Antique or antique things that have been restored 
  3. Well-known flea markets in a specific area 
  4. Online reseller applications like Meesho provide a large inventory for reselling.

Identify a target market by niching down.

It is important to identify a target market by niching down: 

  1. Setting your sights on a well-defined target market enables you to.
  2. Tailor your digital goods to the unique requirements of your niche, increasing their allure and worth.
  3. Tailor your marketing messages to your target market's specific requirements, preferences, and even linguistics to make your message more compelling.
  4. Establish yourself as the authority in a very limited area to outperform the competition.

So, niche filled.

Pricing the product

Because many individuals receive digital products for free, choosing the right price for one might be challenging. The secret is to be assured and experiment with various rates for a certain period to gauge how buyers respond to them.

Legal Processing

Many people ignore the legal requirements in creating an online eCommerce business since just a few procedures are required. Future activities will be uninterrupted if the company is founded with legal compliance. The authorities may shut down the business if it does not abide by local legislation. Registering your unique business name and ensuring another organization does not already take your firm's name is also essential.


The basic set of abilities required for an online reseller to succeed is marketing. You'll need to continually create fresh approaches to connect with your customers and differentiate yourself.

Here are some frequently used marketing strategies for reselling, though every business needs a unique approach:

  1. Competitive prices with sporadic discounts and offers 
  2. Free shipping with a minimum cart value
  3. Annual and festival sales
  4. Promotions through endorsements and reviews 
  5. Influencer collaborations 
  6. Referral discounts 
  7. Paid partnerships


Summing up, anyone can become a digital product reseller with only simple steps and procedures. You don't need to hold overhead associates or physical product inventory. You don't need big warehouses or offices to sell digital products. You can start it by sitting at your desk in your room. Launching digital products as a reseller don't need much workforce. All you need is to think out of the box and invest time to take off the business. Follow the mentioned above religiously, and you can successfully become a digital product reseller.

BotPenguin is an AI-powered chatbot platform that enables you to quickly and easily build incredible chatbots to communicate and engage your customers on the website, Facebook messenger, and other platforms.