Frequently Asked Questions About the Video Game Reselling Business
Video game reselling—buying used games, consoles, and accessories at lower prices and selling them for profit—attracts people looking for flexible, low-barrier side income. This FAQ addresses the practical realities of running this business, from startup costs to realistic earnings and common pitfalls.
How much does it cost to start a video game reselling business?
You can start with $500 to $2,000 depending on your approach. A minimal setup requires $500–$800 for your initial inventory (sourcing games from thrift stores, estate sales, and local marketplaces), shipping supplies, and a listing platform account. If you want a more competitive inventory of 50–100 items upfront, expect $1,500–$2,000. You don’t need a physical storefront or special equipment, making this one of the lower-cost online businesses to launch.
How long until I make my first money?
Your first sale typically comes within 2–4 weeks if you source inventory efficiently and price competitively. However, your first actual profit (revenue minus costs) may take 6–8 weeks because you need time to build inventory, gain seller ratings on platforms like eBay, and establish pricing confidence. Experienced resellers reinvest early profits into expanding inventory rather than taking them immediately.
Do I need a business license or certification?
Requirements vary by location, but most jurisdictions don’t require a specific license to resell used games as a sole proprietor. You will need to register for sales tax in your state if your sales exceed the threshold (usually $600–$1,200 annually, depending on your state), and you must report all income to the IRS on Schedule C. Consult your state and local tax authority before assuming you’re exempt—ignoring this can create liability later.
Can I run this part-time or on weekends?
Yes, this is one of the most flexible side businesses. Most successful part-time resellers spend 5–10 hours per week sourcing, listing, and shipping. You can do sourcing on weekends at local thrift stores, estate sales, and flea markets, then handle photos, listings, and customer service during weekday evenings. Many people run this alongside a full-time job for 1–2 years before considering scaling.
How do I find my first inventory and customers?
Sourcing comes from thrift stores (Goodwill, Salvation Army), estate sales, Facebook Marketplace, Craigslist, local buy-sell-trade groups, and pawn shops. Customers find you through established platforms like eBay, Mercari, Facebook Marketplace, and specialized gaming sites like PriceCharting. Don’t expect to build your own customer base early—use existing platforms where buyer traffic already exists. Once you establish 50+ positive reviews on a platform, you’ll see repeat customers.
What are the biggest challenges in video game reselling?
The main obstacles are sourcing consistent inventory (especially popular or retro games), competition from other resellers driving prices down, managing shipping costs (games are heavy relative to their value), and dealing with seasonal demand fluctuations. You’ll also face occasional returns, damaged items in transit, and the time investment of photography and detailed listing descriptions. Success requires patience and willingness to iterate on pricing and sourcing strategies.
How much can I realistically earn?
Part-time resellers typically earn $300–$1,200 per month once inventory reaches 50–150 items. This assumes 15–35% profit margins and 10–15 sales per week. More serious operators with 200+ items and optimized sourcing may reach $2,000–$4,000 monthly, though this requires 20–30 hours weekly. Full-time resellers with strong supplier relationships and high-volume inventory can exceed $5,000 monthly, but that’s the exception, not the norm.
Do I need to form an LLC or business entity?
Not initially. You can operate as a sole proprietor and file Schedule C on your personal tax return. An LLC becomes valuable once you exceed $5,000+ in monthly revenue, at which point liability protection and tax efficiency justify the $150–$500 annual cost. Many successful resellers operate 1–2 years as sole proprietors before formalizing, so don’t over-complicate early on.
What insurance do I need?
General liability insurance is optional for a home-based reselling business but worth considering once revenue exceeds $3,000 monthly (cost: $300–$600 annually). You don’t legally need it, but it protects you if a buyer claims an item caused damage or injury. Standard homeowners insurance typically doesn’t cover business inventory, so check with your provider. Most part-time resellers skip this early on and add it as they scale.
Can I run this from home?
Completely. You need a clean space for photography, secure storage for inventory, and reliable internet. Most successful operators dedicate a closet, shelf unit, or spare bedroom corner to inventory and use natural light for product photos. Home operation eliminates rent and overhead entirely, which is a major advantage over brick-and-mortar alternatives.
What separates successful resellers from those who quit?
Successful operators treat this as a real business from day one: they track inventory in a spreadsheet, test different pricing, invest profits back into sourcing, and build systems to reduce time per sale. Those who fail typically expect quick money without effort, treat sourcing as random treasure-hunting, overpay for inventory, or give up after 2–3 months of mediocre sales. The difference is consistency and willingness to learn from slow weeks.
Is video game reselling seasonal?
Yes, significantly. November–December (holiday season) typically sees 40–60% higher sales volume and better pricing power. Summer months are slower but still viable. Back-to-school (August–September) creates a secondary bump. Winter can bring slower traffic. Smart resellers stock heavily in fall and maintain patience during slower months, sometimes bundling items or running promotions to move inventory.
How do I price my inventory?
Use PriceCharting, eBay sold listings, and Mercari to research current market prices for each game or console. Price 10–15% below the current average to sell faster, especially if you’re new and building reviews. Factor in platform fees (12–15% on eBay, 10% on Mercari), shipping costs ($2–$5 per item), and your time. A $25 game with a $3 shipping cost and $3 in fees leaves roughly $15 gross profit; after sourcing cost ($8–$12), net profit is typically $3–$7 per sale.
Can this replace a full-time income?
For most people, no—not in the first year. You’d need to reach $3,000–$4,000 monthly profit to replace an average full-time salary, which requires 200+ active listings and strong sourcing discipline. A small percentage of resellers achieve this after 18–24 months, but they typically combine video games with other categories (consoles, retro items, tech) to diversify income. Treat it as a realistic side income for 1–2 years, not an immediate salary replacement.
What is the biggest mistake beginners make?
Overbuying expensive inventory without confirming demand first. New resellers often pay $20–$40 for bulk game lots hoping to flip them for profit, only to find those games sell slowly or have lower margins than expected. The smarter approach is to start with 10–15 carefully selected items, learn pricing and customer behavior, then scale. Also avoid listing everything at once and expecting passive sales—successful resellers refresh listings, adjust prices weekly, and actively manage inventory.
How do I handle returns and damaged items?
Set clear return policies (eBay defaults to 30 days) and test all games before shipping. For damaged items, document everything with photos before shipping and provide tracking numbers. Most platform disputes favor buyers, so build in a small buffer for occasional returns when calculating profit margins. Experienced resellers accept 2–3% of sales as returns and budget accordingly.
Should I specialize in a particular game system or era?
Specialization (retro Nintendo, PlayStation exclusives, etc.) can improve efficiency and pricing power, but it limits sourcing opportunities and makes income more volatile. Generalist resellers (handling multiple systems and eras) have steadier income but require broader knowledge. Most successful operators start generalist to learn the market, then gradually specialize once they identify their strongest categories—usually where they have genuine knowledge or local sourcing advantages.
What tools or software do I need?
Start with what you have: a smartphone camera, free eBay or Mercari accounts, and a spreadsheet (Google Sheets is free) to track inventory, costs, and sales. Paid tools like Sellfy, Inventory Lab, or Airtable become valuable once you exceed 100 items, but they’re not necessary early on. Many successful part-time resellers operate for months with just a spreadsheet and phone camera before investing in anything beyond basic shipping supplies.
How do I avoid getting scammed by sellers?
Buy from established local sources (thrift stores, known estate sale companies) rather than strangers offering suspiciously cheap bulk lots. Test or inspect items before paying when possible. On platforms like Facebook Marketplace, meet in public and bring a friend. If sourcing online, use Paypal G&S or similar buyer protection. Your first few months should focus on learning local sourcing; online bulk buying carries higher risk for beginners unfamiliar with detecting counterfeits or condition issues.