Are you addicted to Poshmark like I am? If you are like me, there are only a certain amount of items you have in your closet to sell. What can you do to keep the sales flowing without giving up the beloved items in your closet? Well…there are a few ways to get your hands on more items to sell.
- selling for someone else
- reselling an item (i.e. purchasing an item at a low cost and selling it for a higher amount than you originally paid)
In this post I will be focusing on wholesale. Wholesale is a great way to get a hold of items at a discounted rate that you can sell for more than its original cost. Poshmark now offers the Wholesale Portal where there are a variety of retailers selling items in quantities of 3 or more at a discounted rate. You may list these items as “NWT Retail” because they have been purchased from a wholesaler or distributer and it is being sold to the public for the first time. Purchasing an item at a lower cost in a retail environment and selling for a higher amount does not count as “NWT Retail”. Sure, it still has the tags attached, but it was originally sold to the public so it does not count as a “NWT Retail” item, but it does count as “NWT”. (Sorry, I felt like I had to define NWT Retail and NWT, I see so many listings on Posh that are not actual NWT retail items).
I think Poshmark is a great environment to start purchasing wholesale. First of all, it is easy to get certified to purchase wholesale. You can easily sign up for retail certification. No payment is required. It just requires a few simple steps of agreeing to Poshmarks terms for Retail Certifcation. To see what the 3 things you need to agree to, check out my post about retail certification. If you ever decide to branch out, it would be a great idea to look into your state to see if you need a sellers permit. Sellers permits are usually required for most wholesalers. Most wholesalers will not even let you look at their stock unless you can verify you hold a valid sellers permit. You may be able to find some wholesalers online who do not require sellers permits, but I choose not to go this route because that means there are more people who have access to this item and…..why would you want to sell an item that is easily accessible to the public? I applied for my sellers permit for California online and received it the same day. If you reside in California and want to apply for your sellers permit, you can click here.
Now you have your sellers permit or Poshmark retail certification, now what? Well…its time to shop! I like to pick a theme for the items I would like to sell. I tend to purchase items that are floral and can be worn either day or night. Shopping for wholesale is not the easy part, you have to understand what your target audience wants. This can actually take the most out of your time.
Okay, so now you have purchased your first wholesale item! What do you do now? First of all, take some great cover shots that will grab the attention of your buyers! Some poshers do use the original photos from the wholesaler (if you ask the wholesaler politely or read through their FAQS, you can find out if you will be able to use the original photo or not). Next comes the tricky part, what do you set the price at? Well, here is my logic:
I purchase a summer dress for $30, which includes 6 summer dresses. Shipping costs $4.95. So the total amount I spent is $34.95 (I will round to $35 to make it easier).
I then divide the total cost by the amount of items I have: $35/6 = $5.84/per dress
I then add $5 to each item (this amount is for the work put towards finding, purchasing, and selling the wholesale item), so now the price of one dress will be: $5.84 + $5 = $10.84/per dress
Great! Now I know the price of each dress and the amount of work involved. Now can I sell it at this price? Well no…do not forget about Poshmark fees. Posh usually takes 20% from each sale. Rather than make things more complicated with the math, I like to double the amount of the price of the item. So, I will list the price of the dress as:
$10.84 x 2 = $21.68 (in which I will round up to $22/per dress)
Doubling the amount of the item does not necessarily mean I will make twice the amount of money on this dress. It would be great if I could, but lets be realistic here (most people make offers, posh does take a fee, and buyers can bundle and receive a discounted price). If I did manage to sell the dress for $22, after the Poshmark fee of 20% ($4.40), I will make $17.60 from the sale ($22- $4.40). My total profit will be $11.76 for the one dress ($17.60-$5.84).
I like using this method to sell my retail items because it gives enough wiggle room for anyone that would like to make an offer (90% of my sales come from offers). Some people try to lowball you and make it so you do not make a profit at all, but others are more considerate and make reasonable offers.
Once you figure out the cost of each item and get some amazing cover shots, you can list away! I hope this helps and if you have any questions, feel free to leave a comment.
Happy Poshing loves!