Last updated on October 9th, 2022 at 04:43 pm
I started reselling just this past summer on Poshmark when I was clearing out my closet before a big move. There were plenty of items I hadn’t worn in forever and they were just taking up space. The less I had to pack to move, the better! I came across Poshmark by chance one day and the rest is history!
Reselling definitely has a learning curve and I wish I had someone to walk me through all the steps when I first started out. I know it is easy to go on Instagram and other social media platforms and see the success of the other resellers out there. In trying to follow their lead, I made plenty of mistakes along the way. So here are four of my past mistakes I would tell a new seller to avoid when starting their own business.
Brands
When I first started selling I had no idea which brands to pick and which to avoid. I just looked for brands I liked and crossed my fingers other people would like them too. This lasted a solid month before I realized not everyone has the same taste I do. And even if the item sold, people often were not willing to pay the prices I assumed they would. Instagram and fashion blogs can be helpful when trying to research what is on trend for the current season. I learned the most from checking comparable items when shopping at my local thrift store.
Poshmark has a search feature where you can look up an item by brand and then narrow the search to recently sold. There you can see what other Poshmark sellers have sold within that brand and the sale price. I now use this feature every time I head to the thrift store to make sure a brand is worth purchasing. ALWAYS check your comparables before purchasing if you’re not 100% confident in a brand or item. Trust me, it will save you time and money.
Equipment
Social media leads you to believe you need all the latest equipment in order to start a successful business. All you really need is a phone with a decent camera or smart phone, clothes to sell, a place to store your merchandise, and hardwork! Fancy lights and a back drop are definitely a plus when it comes to growing your presence online and establishing a business, but not a requirement. When you are just starting out the basics are plenty in order to find out if reselling is for you! If later you would like to invest in products to further your business, go for it! When you are first starting your business, simplicity is key.
COG (AKA Cost of Goods)
The most costly mistake I made was not paying attention to the cost of the item and researching a potential sale price. When I first moved on from selling clothes from my own closet, I was thrilled when I would find a cute shirt at the thrift store for $5. This is a score if you are buying for your own closet! In reselling world the general rule to follow is you need to be able to at least triple the cost of your good in a sale to make it worth buying. Depending on what platform you sell on a percentage of your sale is taken by the company (Poshmark takes 20%). So this $5 shirt you bought may only sell for $15 on poshmark, and after the fees and cost of goods are subtracted, you as the seller make $7 on the sale. Small sales do add up in the long run, but it is important to keep in mind your potential profit when sourcing merchandise to ensure it is worth your time.
Another acronym to pay attention to is your Average Selling Price (ASP). Starting out your ASP may be less than $15. As you learn about brands and what is more likely to sell on different platforms your ASP will increase. Search around the different thrift stores in your area and watch out for sales. I know some Goodwill stores have $1 tag days or some thrift stores discount old merchandise in bulk by the pound. These are both easy ways to keep your COG down as low as possible, leading to bigger profit margins
Procrastinating Listing
This may seems obvious, but if you don’t list it your item can’t sell! I know listing can become tedious at times and can seem like a mundane task. Trust me it is not my favorite part of reselling. I spend hours at thrift store only to leave bags of clothes sitting in my resell closet for weeks unlisted. Consistency key keep to your shop growing and increasing your inventory for buyers to find. Try to set a time at least once a week to list a bunch of items at once. I’ve found if I knock out a bunch of items all at once while blasting some of my favorite tunes it makes the less exciting part of my business more fun!
Have Fun!
Just like starting any business, reselling can be overwhelming and stressful at times! I was down on myself time and time again when items were not selling or buyers were not accepting my offers. At the end of the day, you are new to this reselling business and success won’t happen overnight. But if you are willing to work hard I know you can start a successful side hustle and have some fun at the same time!
Ready to get started reselling? Click on this link and use my code CurrentlyJess to open your own reselling closet. And continue following my site for more reseller tips and tricks
