- Ashley Peek sold clothes on Poshmark in college when she needed to clear out her closet.
- She now works 25 hours a week for her reselling business while still working full-time.
- Peek shares her top tips and advice for starting a reselling company, as well as the common mistakes she avoids.
This essay was based upon a conversation with Ashley Peek from Dallas, a 27 year-old reselling entrepreneur. Insider verified her income from reselling streams. This article has been edited for clarity and length.
Since 2016, I have been using Poshmark. To clear out my closet, I began selling clothes in college. Although I only made a small amount of money selling my clothes, I really enjoyed the experience.
I’ve always had a “reseller’s mentality” and sold my clothes at Plato’s Closet and Garage Sales, but it was the convenience of selling from my own home that made a difference.
When I was in college, I used to spend hours looking for bargains at thrift stores. After I began reselling on Poshmark, I realized that I could buy clothes from thrift stores and then resell them online at a profit.
After college, I became more serious about reselling.
After my graduation, I was offered a job within the healthcare sector. Around that time, I began to dedicate more of my energy, time, and money to selling.
I sourced items mostly from consignment shops. To resell, I purchased “mall brands” such as Zara, Free People, or Anthropologie. I also expanded my reselling platforms: eBay is my second-highest-selling platform, but I’m also on Tradesy and Whatnot.
In March 2019, I increased my reselling business and switched my inventory from luxury brands to mall brands. Although it was risky, the margins on my sales were much greater by purchasing these higher-priced brands. This allowed me to maximize my profit and still put in the same amount of effort.
It is much more difficult to find brands such as these in consignment or thrift stores. So I had to adapt my sourcing strategy.
Instead of looking for luxury goods at Goodwill racks, I turned to online shopping sites such as The RealReal. These websites offer steep discounts on brands like Valentino and Gucci.
Poshmark is another place I use to find my favourite brands. I buy items below the price that I believe I can sell them. I will relist them at the usual higher price point which is my profit when they are sold.
This pivot towards mid-tier luxury goods proved to be very profitable. My reselling income had surpassed my full-time earnings in the health-insurance sector by August 2019. I earned about $80,000 in reselling alone in 2019.
My reselling business and my 9-to-5 job are balanced.
On top of my full-time job, I spend 25 hours per week reselling. I’ve managed to reduce this time over the years by hiring a virtual assistant, sourcing more inventory online and automating price negotiations with customers through my listings.
Before I buy an item, I check its Poshmark sales history. This gives me an idea of the speed at which they sell and how much profit I can expect.
I want to sell items as quickly as possible. I don’t want anything to be priced too high as it could sit in my inventory and tie up the funds that were used to buy it. I am trying to scale profitably while keeping a smaller stock that is more valuable.
Because they are light and easy to ship, I prefer to source high-quality, lightweight items like dresses.
If you are thinking about starting a business selling reselling products, I recommend that you look closely at what your items are selling. Compare the sales of similar items to determine if they are comparable and if they offer you the desired profit margins. You should return any item that isn’t in line with your goals. My biggest mistake was purchasing items without knowing what they would sell for.
Apart from the time I spend sourcing products and shipping them out, I also create reselling-content. I am an entrepreneur. Instagram account with 30,000 followers and share tips with other resellers. I also have a Website where I sell in-depth PDF guides for reselling.
Poshmark was my reselling platform. This made me $133,000 in addition to my salary.
Selling online is more profitable than what I do in my full time job. A second income is life-changing.
I don’t live paycheck to paycheck anymore. I have been able build a savings account and save money for retirement. In the near future, I plan to purchase a luxury automobile with my earnings.
Although I have been fortunate in my reselling efforts, my consistency in posting has been the key to my success growing ReCloth Collection. I am very active on Instagram. I add to my story and feed at least once per week. I also share items from my Poshmark Closet regularly to make them more visible to new eyes and rank higher on the Poshmark search engines.
Selling is my passion, and I’m happy it’s been so profitable for me. To be honest, it’s something I couldn’t stop doing.
