How to Become a Movie Rental Reseller

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Thanks to the popularity of companies such as Blockbuster, Hollywood Video and Netflix, movie rental resale has become an industry of its own. When a new film hits shelves, stores order large quantities to meet the demand for rentals. Once the demand dies down, however, the stores need far fewer copies, and so former rentals become available as discounted sale items. You can profit from rental resale even if you do not own your own video store.

Things You'll Need

  • Computer
  • Used movies

File the necessary paperwork. In order to conduct business as a DVD reseller, you must acquire a seller's permit, sometimes called a resale license or resale certificate. You will file this through the department that handles business affairs in your state, such as the Department of Revenue, Department of Commerce or Board of Equalization. You will also need to file for a fictitious business name through your county clerk's office.

Choose a method for selling DVDs. If you want to resell movies using eBay, you will need to set up an eBay seller's account. If you want to resell movies using Amazon, you will need to sign up for an Amazon merchant account. If you want to use your own website, you will need to register a domain, sign up for credit card merchant services and design your site. You can also use a combination of these methods in addition to other online services in order to maximize your profits.

Determine which films you can actually sell. Many former rentals, like certain indie films and really bad movies, have been added to the bargain bin for a reason. You must choose carefully the types of movies you purchase for resale, based on the success of each film. Look into variables such as box office numbers, rental histories and critical acclaim in order to determine which films you would like to purchase.

Shop around to find the best prices on former rentals. Different outlets such as Blockbuster, Hollywood Video, Netflix and your local independent video stores will hold different sales at different times, so remain aware of which retailers have the best values to meet your rental resale needs at any given time.

Check to see your competitors' prices for popular used titles. Search sites such as eBay, Amazon, iOffer, SecondSpin and others to find out the average used prices for the films you want to sell, and determine whether you can sell within that price range and still make a profit. You will find some prices difficult to match, while certain other films will show great profit potential. You will want to purchase more copies of films that show the greatest profit potential.

Buy movies. Now that you know which films buyers want and which retailers have the best prices, you can begin stocking up on merchandise to sell for profit. Buy quantities according to how much you can afford and how much profit you hope to make. If you just want to sell as a hobby, you will buy far less than if you want to sell as a full-time business.

Begin selling. Advertise your used rental movies at prices greater than what you paid, while still appealing to budget-conscious consumers. When selling to other retailers who purchase used movies, keep a close eye on the value of your product. When selling online, always maintain honesty and advertise your movies as former rental items. If you mislead your customers, you will lose them.

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