Reselling secondhand goods

What it costs to start

Amounts are itemized estimates. “Not verified” means we don’t have a defensible figure; it is not $0.

Ongoing costs

What you need

• Smartphone with camera
• Shipping supplies
• Storage space
• Transportation for sourcing

Licensing: A general business license and a state sales tax permit may apply once you are buying to resell. Payment platforms may report sales on Form 1099-K. Some items carry extra rules, such as recalled products, children’s items and cosmetics, so research before buying.

Skills that help: Sales, Logistics and delivery, Marketing. People commonly start without specialized skills.

Time: Sourcing, photographing, listing and shipping all take time; weekends suit yard and estate sales.

Typical customer: Online shoppers looking for used clothing, collectibles, electronics, furniture, books and tools at lower prices

How it makes money: Sell each item for more than you paid after marketplace fees and shipping

Business model: Online business, Product business, Side hustle

Risks and downsides

• Inventory that does not sell ties up cash and space.
• Buying counterfeit or recalled items can lead to refunds, account bans or legal trouble.
• Returns, damaged shipments and buyer disputes eat into margins.
• Marketplace fee and policy changes can shrink what each sale leaves you.
• Treating a business as casual selling can cause tax surprises; keep cost records for every item.

Your first step

Then

1. Pick one or two categories you can judge well.
2. Check your state sales tax and resale certificate rules.
3. Record what you paid for each item to calculate profit and taxes.
4. Set a rule for marking down or donating items that do not sell.

Sources and review

• Form 1099-K FAQs: What to do if you receive a Form 1099-K (Internal Revenue Service). Supports: Payment platforms may report sales; gains on personal items are taxable, and being in the business of selling changes how proceeds are treated.
• Business guide (licenses and permits) (U.S. Small Business Administration). Supports: Licensing and permit requirements vary by city, county and state.
• Self-employment tax (Social Security and Medicare taxes) (Internal Revenue Service). Supports: Self-employed people generally owe self-employment tax on net earnings.

Last reviewed October 18, 2026. Method: Itemized editorial estimate built from typical starter equipment and setup items. Cited sources support the requirements and context, not each dollar figure. Items we could not price defensibly are marked "Not verified" instead of $0. Local prices vary.