Inventory management and storage is a real challenge as your reselling business grows. Here are your options.
Most resellers start by storing inventory at home — a spare room, garage, or section of a bedroom. Invest in shelving units (IKEA Kallax units are popular among resellers) and clear labelling so you can find items quickly when they sell. If you use a room exclusively for business, you may be able to claim a proportion of your home costs (rent, mortgage interest, utilities) as a home office deduction.
When home storage is maxed out, self-storage units become necessary. Typical rates in Australian capital cities range from $100-300/month for a small unit (4-6 square metres). The entire cost is deductible as a business expense. Consider location (close to home for frequent access), climate control (important for clothing, books, and leather goods), and security.
Label every item with a reference number that links to your inventory spreadsheet or software. Use clear containers so you can see contents without opening. Organise by category or listing date (oldest items near the front). Good physical organisation saves time when packing sold items and makes stocktake easier.
Self-storage costs are fully deductible. Home storage requires more careful calculation — you can claim a proportion of home costs based on the floor area used exclusively for business. See our inventory tracking guide and deductions guide.
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