Do you want to clear your closet and make some extra cash along the way? Then you have probably heard of selling clothes on Poshmark. It appears to be quite popular for women who are into fashion, but is it worthy of your time? Well, we shall find out in this review.
What Is Poshmark?
Poshmark is an app store that allows you to sell new and gently used clothing that you don’t want to wear anymore. Founded in 2011, the site currently has more than 1 million users online re-selling everything from hairpins to prom dresses.
How to Sell Clothes on Poshmark?
Getting started on Poshmark is fairly easy. Here is a quick guide on how it works.
- First, you’ll need to download the app on your iPhone or Android devices.
- Then, create a user account with an image of yourself using your Facebook profile or an email address.
- Next, you need to set-up your network by connecting with your friends on Facebook or Twitter OR follow other active Poshmark users.
- When your item is ready, click the ‘sell’ button on the home screen and your camera would be on standby. For one item, you can take up to 4 cover shots for the listing.
- After that, you need to add as much description as you can to the item in order to attract potential buyers. You would also be able to see the earnings that are automatically calculated for you.
- To advertise your item, you would need to share the listing on various social networks (Pinterest, Facebook, Twitter, etc.) or join Posh Parties to get more exposure.
Now, all you do is just rinse and repeat. By following other shoppers, resharing their items and engaged in user comments, you would increase your clothing sales on Poshmark.
What Are The Benefits of Using Poshmark?
Honestly, this marketplace can be quite addictive if you are the kind of person who loves fashion. Here are some of the advantages from a seller’s standpoint.
- It just takes a few minutes to list an item (for free) on Poshmark. If you are very ‘fluent’ with mobile devices, you shouldn’t have any problem with this.
- The flexibility of selling through mobile means you can connect with buyers at anytime and anywhere.
- Shipping cost is paid by the buyer while Poshmark prepares the delivery boxes and prepaid labels. All you need to do is just pack and ship it out.
- The marketplace is backed by a strong community of shoppers (mostly female) who love designer collection, at a bargain. If this is your targeted audience, then you are in the right place.
- As of February 2016, you can apply for a wholesale license and sell new merchandise under your own fashion brands. This makes starting an eCommerce business easier for newbies.
What Are The Limitations of Using Poshmark?
As great as it may sound, running a virtual boutique is no bed of roses. Before you even think of earning a fortune, consider the following situations to see if Poshmark is your ideal platform.
- While listing an item is easy, successful sellers would recommend that you try to advertise at least 30 items to kick start your closet portfolio.
- Four shots per item can be very limiting, especially if you are sharing something that requires close-up details.
- Although listing is free, Poshmark takes $2.95 for items selling under $15 and 20% sales commission for those selling over $15.
- Social sharing and Posh Parties are the two main ways to drive traffic to your virtual boutique. If you are not active in these areas, your item can sit on the listing for a very long time. This can be frustrating if you are in a hurry to empty your closet for the next season.
- At current, this marketplace is only available to the US shoppers.
- Even though you are selling second hand items, buyers can still negotiate for lower prices. There’s a feature that provides for this. If you agree to the offer, your earning potential would reduce further.
- If the brand of an item is not popular or never heard of, it can be quite difficult to attract shoppers’ attention, much less sell it.
- As the marketplace continues to expand opportunities for independent sellers and retail outlets, you are up against a tough competition if you are not diligent in advertising your listing through social channels.
Is Poshmark Worthy of Your Time?
Here is how I see it. When you sell second hand clothing, you are actually selling at a depreciated value (often times 50-70% of the original retail price). In other words, you are just earning back a certain percentage on what you have spent in the first place.
On top of that, the company takes a small cut of your sales. So, it’s not really a pure income. But if that’s what you want, then there’s no harm in trying out Poshmark.
Secondly, you can only provide one item per buyer so you can’t generate recurring income unless you have the capability (or the money) to replenish the same stock quickly. So unless you are associated with clothing retailers, earning sustainably from Poshmark can be quite challenging.
Are There Any Better Ways to Sell Clothes Online?
When it comes to making money online, I am a big advocate of following your interest – in this case, fashion – and start an online business. There are two ways to go about this.
(1) Create an Online Store
If you still want to empty your wardrobe for cash, then you should create an online store on YOUR OWN website. That way, you will have better control of your listing and pricing. Most importantly, you can keep 100% of the profit to yourself.
With a free builder like SiteRubix, you get to publish on WordPress using a free hosting service. You can even write a blog about your closet and drive online traffic from search engines, instead of relying solely on social channels.
(2) Join Affiliate Programs
Once your website is setup, you can multiply your income streams through various affiliate programs. In this business model, you earn in the form of a sales commission whenever you refer someone to the merchant and they purchase something through the official website. I personally prefer this method of monetization because;
- You don’t have to handle any shipping or stock up products. In fact, you don’t even have to communicate directly with the customer.
- The income potential is recurring because the merchant would maintain the stock instead.
- People who buy original items are generally serious buyers. They appreciate good quality products, they don’t haggle over the prices and most importantly, they are willing to pay for what it’s worth.
Here are some affiliate programs and the commission payout that you may want to consider;
- Banana Republic – 2-4%
- American Apparel – 3%
- Forever 21 – 4%
- Hello Kitty – 5%
- Crocs – 5-10%
- Chinese Laundry – 7%
- Modcloth – 7%
- New Balance – 7%
Build Long Term Monetizing Goals
Converting clothes into cash isn’t a bad idea, but if you could think beyond your closet (and consider long term benefits), you’ll find that having a personal website is way better than selling on Poshmark. It gives you an opportunity to start an online business, explore your creativity and reach out to a bigger audience.
Hopefully, this review has given you a better idea about Poshmark and what you can expect from a seller’s standpoint. If you like to venture into the clothing business online, see how you can get started at my recommended training platform here.
“Your brand is the single most important investment you can make in your business.” – Steve Forbes
Do you have any thoughts or questions about this topic? Just leave them in the space below and I’ll get back to you.
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