I made $133,000 last year reselling on Poshmark. Here’s how I started this side hustle that brings in more than my 9-to-5 and the common mistake I tell newbies to avoid.
This as-told-to essay is based on a conversation with Ashley Peek, a 27-year-old reselling entrepreneur from Dallas. Insider verified the revenue from her reselling income streams. The following article has been edited for length and clarity.
I’ve been on the Poshmark app since 2016. I started selling in college to clear out my closet. I made only pocket money from selling my unwanted clothes, but I enjoyed the process.
I’ve always had a “reseller’s mindset,” selling my clothes at garage sales and Plato’s Closet, but reselling from the comfort of my home was a game changer.
In college, I was always trolling thrift stores hunting for bargains. It didn’t take long after I started reselling on Poshmark to realize I could pick up clothes at the thrift store and resell them online for a profit.
I got more serious about reselling after college
After I graduated, I got a job in the healthcare industry. Around then, I started to devote more of my time, money, and energy to selling.
I was sourcing items mostly from local consignment stores. I bought “mall brands” like Zara, Free People, and Anthropologie to resell. I also expanded my reselling platforms: eBay is my second-highest-selling platform, but I’m also on Tradesy and Whatnot.
Around March 2019, I ramped up my reselling business by shifting my inventory from mall brands to midtier luxury goods. Buying these more-expensive brands was a risk, but the profit margins on my sales were much higher. This move maximized my profit while maintaining the same amount of work on my side.
It’s much harder to find brands like this in your local thrift or consignment stores, so I had to pivot my sourcing strategy.
Instead of searching the racks at Goodwill, I started to use online sites like The RealReal to source luxury goods from brands like Valentino, Gucci, The Vampire’s Wife, and Max Mara at steep discounts.
I also search my preferred brands on Poshmark and buy items listed as below what I know I can sell them for. I’ll relist them at their usual, higher price point, which becomes my profit when they sell.
This pivot toward midtier luxury goods was very profitable. By August 2019, my reselling income matched my full-time salary in the health-insurance industry. I pulled in about $80,000 just from reselling in 2019.
I balance my reselling business with my 9-to-5
I spend about 25 hours a week reselling, on top of my full-time job. Over the years, I’ve been able to streamline this by sourcing more of my inventory online, hiring a virtual assistant to manage inventory, and using software that automates price negotiations with customers on my listings.
My reselling strategy is to check an item’s previous sales on Poshmark before I pick it up. It gives me an idea of how quickly they sell and what kind of profit I can expect to make.
My goal is to turn over items quickly. I don’t want to price anything too high because it might sit in my inventory and keep the funds used to purchase it tied up. I’m working on scaling profitwise while maintaining a smaller, more valuable stock.
I prioritize sourcing light and high-quality items, such as dresses, because they often sell at a significant margin and are easy and cheap to ship.
My advice for anyone starting a reselling business is look closely at what you’re selling. Look up the items’ comparable sales, and evaluate whether they meet your desired profit margins. If an item doesn’t align with your goals, leave it behind. The biggest mistake I made early on was buying items without being sure what they’d sell for.
In addition to the time spent sourcing items and shipping out sales, I’m a reselling-content creator. I run an 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.
I made $133,000 last year from reselling on Poshmark, on top of my salary
I make more selling online than I do in my full-time role. Having a second income has been life-changing.
I no longer live paycheck to paycheck. I’ve been able to start building a savings account and put money away for retirement. Aside from looking to the distant future, I want to purchase a luxury vehicle with my earnings.
I’ve been lucky in my reselling endeavors, but my consistency in posting is the main reason I’ve had such luck growing ReCloth Collection. I’m very active on Instagram, adding to my story every day and my feed at least once a week. I also regularly share items in my Poshmark Closet to allow them to be seen by new eyes and rank higher in the Poshmark search engine.
I have a passion for reselling, and I’m glad it’s become so lucrative for me. To be honest, I could never stop doing it.