How to use referrals to get new buyers
Mar 1, 2025
Unlocking Growth: The Power of Referrals for Beginner Resellers
Referrals are one of the most effective—and often underutilized—ways to grow your buyer base as a reseller. Whether you’re selling collectibles, electronics, or fashion, a well-set-up referral system doesn’t just bring you new customers: it builds trust, boosts repeat business, and helps you stand out in crowded marketplaces. This guide walks you through a simple, actionable approach to getting new buyers through referrals, while keeping your inventory, listings, team, and fulfillment process organized and efficient.
1. Why Referrals Matter for Resellers
Referrals work because buyers trust recommendations from people they know. Instead of relying only on ads or search algorithms, you tap into satisfied customers’ networks—usually at a much lower cost. For new or growing resellers, this can mean:
Faster growth with less marketing spend
Stronger buyer loyalty and repeat purchases
Wider reach without complex advertising
2. Set Up a Simple Referral Program in 3 Steps
Decide on your referral reward. Example: "Refer a friend and both get 10% off your next purchase" or "Earn $5 credit for every new buyer you bring." Simple discounts or store credits work best for most resellers.
Create an easy way to refer. Make it as simple as sharing a unique link, code, or even a printable card. Digital referral codes are easiest to track (many marketplaces and tools offer this feature).
Promote the program with every sale. After a successful purchase, send a thank you message with a referral offer. Include reminders in your packaging, order confirmation emails, and social media posts.
3. Keep Inventory and Listings in Sync Across Sites
If you’re selling on multiple platforms (e.g., eBay, Mercari, Poshmark), it’s crucial to keep your inventory accurate. Nothing sours a new buyer relationship like selling an item that’s already gone! Here’s how to stay organized:
Use a central inventory system. Tools like Gavelbase make it easy to manage your inventory and sync listings across sites. You can also use spreadsheets to start, but automation saves headaches as you grow.
Update listings promptly. When an item sells, immediately mark it as sold or remove it from other platforms.
Track all incoming and outgoing items. Whether you use software or a simple Google Sheet, keep a log so your referral-driven buyers always find what they expect.
4. Assign Basic Team Roles (Even if It’s Just You)
Even solo resellers benefit from thinking in terms of roles. If you have family or friends helping, clarity is key. Basic roles might include:
Inventory Manager: Handles tracking and updating inventory
Listing Specialist: Creates and edits listings on different platforms
Customer Service: Responds to buyers, sends referral info, and addresses questions
Shipping Coordinator: Manages packaging and shipping or organizes pickups
Assign roles based on strengths and availability. If you’re doing it all, set specific times for each job so nothing slips through the cracks.
5. Track Sales, Fees, and Referral Outcomes
To make your referral program sustainable, you need to know what works. Here’s how to keep it simple:
Log every sale and referral. Note the buyer, referring customer, item, platform, and any rewards given.
Track fees and costs. Use a basic spreadsheet or a tool like Gavelbase to see how much you’re earning after shipping, platform fees, and referral rewards.
Review regularly. Set a calendar reminder to review your referral program monthly. Look at how many new buyers came from referrals, which rewards worked, and whether you need to adjust.
6. Make Shipping or Pickup Smooth for Everyone
Referrals bring in new buyers—make sure their first experience is excellent. Clean, fast fulfillment is essential:
Standardize your process. Use the same packaging and shipping methods for every order. Print labels at home to save time.
Communicate proactively. Send buyers tracking info or pickup details right away. A quick, friendly message goes a long way.
Document your process. Even a one-page checklist helps you or your team avoid mistakes.
7. Keep It Beginner Friendly
Referrals don’t have to be complicated. Here’s how to make sure you actually implement these steps:
Start with one simple referral offer—don’t overthink it
Use tools that are easy to learn and don’t break the bank (spreadsheets, free trials, or beginner-friendly platforms)
Review your process once a month and tweak as needed
Extra Tips and Resources
Read more about setting up referral programs (even if you’re not on Shopify, the principles apply)
Explore referral tracking tools for more ideas
For inventory basics, check out this inventory management primer
Take Action Today
Referrals are a powerful, low-cost way to get new buyers—especially when you back them up with organized inventory, clear roles, and smooth fulfillment. Start small: set up a referral offer, pick a tracking method, and tell your next buyer about it. With each step, you’ll build a stronger, growing business that attracts customers who trust you from the start.