Introduction
In the world of traditional retail, restocking inventory is relatively straightforward: you place an order with a supplier, select your quantities and sizes, and wait for your shipment.
But resale? That's a whole different game.
In this article, we’re diving into the fascinating world of inventory sourcing for resale merchants. Whether you’re a seasoned business or just starting out, understanding how secondhand inventory is acquired—and how sourcing strategies evolve—is key to building a successful and sustainable resale business.
Why Inventory Sourcing Is So Different In Resale
Resale doesn’t come with a catalog. You can’t reorder the same exact bag in five colors or restock that sold-out vintage tee in all sizes. Each item is unique. That means inventory availability is constantly shifting, and resale merchants have to be both strategic and creative in how they source.
Instead of relying on a single supplier, resale businesses often use a mix of methods to keep their inventory fresh, relevant, and flowing. Let’s walk through the most common sourcing strategies.
1. Wholesale Suppliers
Wholesale resale suppliers are a great option for businesses looking to acquire higher volumes of inventory, especially after testing the waters by selling from their own closets or sourcing locally through estate sales and auctions.
For many resale entrepreneurs, the tipping point comes when the e-commerce side of the business is running smoothly - but inventory levels can't keep up with customer demand. That's often when they make the jump to wholesale. In most cases, sourcing from wholesale suppliers is the intermediate step before developing a strategy to acquire inventory directly from customers.
These suppliers give merchants access to bulk quantities of secondhand items — including designer handbags, clothing, shoes, jewelry, and more. Depending on the supplier, you might receive a shipment of unseen items or have the opportunity to hand-select inventory from the wholesaler's online portal.
While wholesale is efficient and can help you scale quickly, it's without trade-offs:
- It can become capital intensive, especially if you're buying large lots up front.
- Margins may be lower, depending on your resale pricing and sourcing costs.
- You may have limited control over inventory quality, condition, or brand mix - particularly if your buying sight unseen.
Still, wholesale is a solid and proven way to jumpstart growth, especially when you're trying to keep up with increasing sales.
Some trusted luxury resale wholesale providers include:
2. Estate Sales & Auctions
For many new resale merchants - especially those who've already tapped into their own closets and those of friends and family—the next logical step is sourcing inventory from estate sales or local auctions.
This channel is ideal for anyone with a sharp eye and a love for the thrill of the hunt. Estate sales and auctions can be gold mines, offering the chance to uncover rare or high-value pieces at incredibly low prices. Success here often comes down to deep product knowledge, solid negotiation skills, and the patience to dig through less-than-stellar inventory to find hidden gems.
At Trendful, we actually began our journey as an online resale store, and estate sales were one of our first sourcing strategies. You really have to be selective about which sales you attend—and prepared to move quickly at the popular ones.
We’ll never forget one of our best early finds: a vintage Chanel blouse from the 1980s that we picked up for just $3.
While estate sales can deliver great margins and unique pieces, this method is also time-intensive and not easily scalable. Still, many resale entrepreneurs build strong reputations (and loyal followings) by curating standout inventory from these kinds of treasure hunts.
Looking to start sourcing from estate sales? Try checking out EstateSales.net, EstateSales.org, or an online platform like Everything But the House (EBTH), a digital option.
Looking for local auctions beyond eBay? Websites like Liveauctioneers or Invaluable aggregate local nationwide auctions.
3. Customer-Base
One of the mose sustainable and scalable inventory strategies? - sourcing directly from your customer-base. This model is fantastic since it turns your buyers into sellers and helps create a circular ecosystem around your brand.
Typically, this sourcing model is utilized once you have created a loyal customer-base interested in also selling to you. It is a great way to foster a sense of community and create more brand loyalty to your resale operations.
There are 3 main ways to acquire inventory from customers:
- Buyouts: You purchase the item(s) upfront. This is a great entry point for acquiring inventory from your customers since you will control the inventory, and it usually has better margins and lower upfront costs. We typically see merchants start with buyouts.
- Consignments: You take items on consignment and pay the seller once the item sells. This can be a great option as you scale your business since you can take on more volume without needing upfront capital as with wholesale or buyouts. However, from an operations side it can become complicated maintaining interactions with your customers. Some things to consider, merchants can do more volume but with lower margins than buyouts.
- Trade-in/Store Credit: You offer credit toward future purchases instead of cash. This option is most effective once you have scaled and have enough interest from customers it can help with customer loyalty and retention for your brand.
In general, buyouts are often the easiest to manage when you’re starting out, while consignment and store credit programs become more viable as you build operational systems and customer trust.
A Blended Approach as You Scale
How you source inventory on the resale market isn’t static. There’s no one-size-fits-all approach to acquiring pre-owned items, and sourcing strategies often evolve as your business grows.
If you’re just starting out, the first place most resale merchants look is their own closets—or those of friends and family. Once that supply dries up, the next step often involves attending local estate sales. These can be great for finding unique pieces at low entry costs, but sourcing solely through estate sales can quickly become unsustainable due to the time, travel, and inconsistency involved.
At this point, many new businesses shift toward working with wholesale resale suppliers. This allows them to access larger quantities of inventory more consistently, helping them meet growing demand and establish a broader product offering.
However, the real game-changer comes once a resale business has built up a steady customer base. That’s when merchants begin sourcing directly from their customers — through buyouts, consignments, and store credit trade-ins. Not only does this provide a reliable and scalable stream of inventory, but it also helps strengthen brand loyalty and cultivate a sense of community around the business.
Over time, successful resale businesses adopt a blended sourcing model — balancing inventory from wholesale suppliers, customer contributions, and estate sale finds. Each channel plays a role in ensuring a diverse, steady, and high-quality inventory flow.
The smartest operators put systems in place that can support all these channels while staying nimble and responsive to what’s working best for their business.
Final Thoughts: Build What Works for You
As stated above, there’s no one-size-fits-all approach when it comes to sourcing resale inventory.
The most successful merchants experiment, iterate, and adapt over time. A model that works for one company may not work for another — that doesn’t mean what you're doing is wrong!
If you’re just starting out, try a few different methods. See what works for your brand, your customers, and your operations. And if you’re looking to scale sourcing from your customer-base, Trendful is here to help. Our software makes it easy to accept buyouts, manage consignments, and offer store credit with automated and streamlined workflows.
Want to see how it works?
Book a demo to learn more about how Trendful can support your resale operations, or sign up and get started now to take your sourcing strategy to the next level.