Making sales on Poshmark is a great way to earn some extra money. But some people are unsure how to get paid once they make sales.
So how do you get paid on Poshmark? After you successfully sell something and the transaction is complete (delivery must be finalized), Poshmark will release your earnings to your Poshmark account. You can see available funds by tapping on your account tab in the bottom right of the app (@username), then scroll down to “My Balance.” You can choose to keep the funds on Poshmark to shop, or redeem via Instant Transfer ($2 fee), PayPal ($.35), Venmo ($.35), Direct Deposit (free) or a paper check mailed to you (free).
If you’re still wondering more about “how do I get paid on Poshmark,” this article explains exactly how the process works.
I’ll also give you some tips for making it as smooth as possible so you can get your money fast. After all, you need to have cash flow in order to keep buying new inventory!
Blog posts may contain affiliate links and create no additional costs for you.
What is Poshmark?
Poshmark is a popular online marketplace or resale website where people can buy and sell new or gently used clothing, accessories, beauty products, home decor, pet products and even electronics. The company was founded in 2011 and has since become one of the most popular ways to make money from the secondary market.
You can choose to keep the funds on Poshmark to shop or redeem cash in multiple ways.
Selling on Poshmark is actually pretty easy, and it’s a very flexible business idea. The key is research and knowing the market. You’ll need to know the items and brands that sell best on Poshmark as well as how to price them.
Just about anyone can make money selling on Poshmark with the right strategy (Should you ever list items as “firm on price”?).
How Does Poshmark Work?
The way Poshmark works is that you create an account, upload pictures of the items you want to sell, and set your own prices. When customers buy items from you, Poshmark takes their fee out of your earnings when the item sells. They charge $2.95 for sales under $15 or 20 percent for anything over that.
The buyer typically pays for shipping, unless you offer free or discounted shipping (Does Poshmark ever pay for shipping?). After you ship the package and the buyer receives it, hopefully they will mark it as received so that you get your earnings. If they do not mark it as received, then after three days, the sale is considered complete, and Poshmark will release your earnings to you.
FYI: Poshmark sends emails to the customer throughout the sales process to encourage them to confirm receipt and share a rating. But you still receive your funds even if the customer does not leave a rating.
How Do You Make Money on Poshmark?
Pin It For Later ⤵️
You can use your profits to buy more inventory to sell.
The process is fairly easy to get started as a seller on Poshmark.
Do you want to get started on Poshmark? Sign up with code THRIFTYIQ and get $10 toward your first purchase!
Decide what you want to sell; clothing can be a simple kickstart. You can get started for free by selling things from your own closet or getting items from friends and family members.
Sign up for a Poshmark account and download the Poshmark app so you have it on the go.
Choose a name for your closet (find out how to change your username), take photos of the items you want to sell, and create your listings.
Whenever a buyer purchases something, give great customer service and ship their package quickly. Before you ship, wait the 3 hours they have to cancel a sale.
Like any other business, reinvest in it. For example, you can use your profits to buy more inventory to sell.
Is It Worth It to Sell on Poshmark?
Pin It For Later ⤵️
I definitely think that selling on Poshmark can be worth it.
The nice thing about Poshmark is the platform is easy to use. Listing items is very simple and there are not a lot of required details. Just the important ones. And you don’t need to be too tech-savvy to navigate it.
There are also some great benefits, like free listings. You don’t have to pay upfront to list products, which is great for new Poshmark sellers just learning what clothing or other itemssell best.
Also, while some shoppers on Poshmark are laser-focused on deal hunting, most shoppers are more willing to make purchases. They also are generally willing to pay more for certain brands, (although some shoppers make a sport out of low-ball offers🤨). So, I definitely think that selling on Poshmark can be worth it.
As long as you price your products right, making money on Poshmark is easy. But like anything else, it can take time to learn the process and research to source popular products.
What You Need to Know to Be Successful as a Seller on Poshmark
The way to get paid on Poshmark is to start selling clothing, accessories, and other items to buyers. So here are some tips to help you make money on Poshmark and the steps for getting paid.
Learn the Market
One of the best tips I can give you for selling on this platform is to understand the market. You must pay attention to trends and prices. Regularly check comparable sales. See what other Poshmark sellers are selling similar items for; listing price means nothing until it sells.
Being successful on Poshmark relies on what you are selling and the prices you list items. If you price something higher or lower than everyone else, make sure there’s a good reason.
Know Your Brands and Inventory
Selling on Poshmark and making money requires you to understand the brands you sell, and you must know your inventory. If you know your products, then it’s easier to convince buyers to purchase.
Pin It For Later ⤵️
Sellers that know the ins and outs of the brands they sell are much more successful than those who don’t do the research.
Sellers that know the ins and outs of the brands they sell are much more successful than those who don’t do the research and don’t share item specifics.
You also want to keep your inventory fresh by listing new items regularly.
Learn the Platform
TERMS: To sell on Poshmark, you need to know the platform. As mentioned, you want to make sure you know the rules, so you don’t violate them.
SHARING/FOLLOWERS: But another MAJOR element to Poshmark – unlike other selling platforms – is the social sharing aspect. Yes, to be successful on Poshmark you must grow your followers and share your listings regularly. Aim to share multiple times a day. It can help to share during Posh Parties, themed sharing events held at specific times. While this can be a turn-off for some, sharing and growing your followers are what exposes your listings to more potential buyers.
PRO-TIP: Posh Parties are Noon, 3p, 7p and 10p EST daily. Check the schedule (you may need to sign in to view this info) to find out guidelines for each theme.
BUY SOMETHING: Using the platform as a customer is a great way to understand the complete buying and shipping process through their eyes. You can use this info to make a great impression on your buyers by providing them a superior experience.
Also, connecting with other sellers on Poshmark, on social media or at live events is a great way to get to know the platform and get good tips.
How to Get Paid on Poshmark
Pin It For Later ⤵️
Poshmark gives buyers 3 days to review their order, after which they consider the sale final and release the money.
Once you list an item, potential buyers will see “Offer” and “Buy Now” on the bottom right of your listings. With the “Buy Now” option, people can tap the button and purchase immediately. But with the “Make an Offer,” someone can send you an offer of a lower price, and then you can choose to accept, counter or decline it. Similarly, as the seller, you can see an “Offer/Price Drop” tab on the bottom right when you view the same listing.
Then you want to ensure that your listings are seen, so regularly share your closet within the app and with your social media followers to increase the traffic to your closet.
Ship the Order Quickly
Shipping (and professional, sometimes elaborate, packaging) is a huge part of customer service on the platform. Once you make a sale, Poshmark automatically emails you a shipping label that you need to print off and attach to your Priority Mail box or waterproof envelope (learn how to ship with Priority Mailers).
I’ll briefly go into shipping a little later. Make sure you follow the shipping guidelines, so products don’t get delayed. Poshmark uses USPS Priority Mail for shipping and charges customers a flat fee.
NOTE: If your item weighs more than 5 lbs, you will need to upgrade the label, which you can easily do in the app or online (find out how shipping on Poshmark works). The max weight for a single Poshmark package is 10 lbs.
Wait for the Buyer to Accept the Item or the 3-Day Waiting Period
This part can be annoying because customers are told that they need to “accept” the item once they have checked it over. But many buyers don’t do this. Poshmark gives buyers 3 days to review their order, after which they consider the sale final.
Once the 3 days have passed, you should be able to log in to redeem your money. There are now 5 ways you can redeem your Poshmark balance:
You now have 5 ways to redeem your money on Poshmark, including Instant Transfer.
Instant Transfer: Get funds in 30 minutes or less; $2 fee
PayPal: $.35 fee
Venmo: $.35 fee
Direct deposit: 1-3 business days; no fee
Mailed check: 2 weeks; no fee
Instant Transfer, PayPal and Venmo are the fastest ways to get your money. But there are additional fees. Direct Deposit can take 1-3 business days, but it is free. And it’s the method I use because I prefer to maximize my profits.
Here’s how to redeem your money using the app or web:
Select your account tab/profile picture at the top-right.
Choose My Sales or Order Activity.
From the menu on the left side, select My Balance.
Choose Redeem Your Balance Here.
Select your preferred cash-out method.
FAQs
Do you need a PayPal account to Sell on Poshmark?
No. You can choose to use PayPal to redeem your balance when you make sales. But it’s optional. You can also use Venmo, Instant Transfer, Direct Deposit or request a check be mailed to you.
How Do I Link My Bank Account on Poshmark?
Please follow the directions under “How Do I Get My Money To My Bank Account”
Does Poshmark give you real money?
Yes, this isn’t one of those schemes where you get credits or gift cards for selling things. Poshmark is legit and pays you actual money for the items you sell.
How long does it take Poshmark to direct deposit?
It usually takes one to three business days for the money to get to your bank if there are no errors in your bank account information. It may take longer over holidays.
How do I ship items on Poshmark?
Shipping orders for Poshmark is pretty easy. You can get Priority Mail boxes for free online at USPS.com or from your local post office. You can also use plain or recycled boxes and padded envelopes.
Print the prepaid shipping label Poshmark emails you and attach it to the box or envelope. Buyers pay one flat fee for shipping depending on the weight of the package, which makes it easy for users and sellers.
Then schedule a pick-up or take it to the post office to mail it.
Selling on Poshmark is a great way to make extra money as a side hustle or full-time business.
Now you know the answer to, “How do I get paid on Poshmark?” The steps are simple and easy to follow.
Selling on Poshmark is a great way to make extra money as a side hustle. You also may decide to become a full-time seller.
The key to making money and growing your business is to research and price your items right. Be sure to take high-quality photos of each item you sell, and remember to provide great customer service.
I always think of HoneyBaked Ham when the holidays roll around. Not because the sweet and savory smells make mouths water. But more because the company makes the vast majority of its annual profits during Thanksgiving and Christmastime!
The same can be said for many of us eCommerce sellers. That’s why it’s critical to know how online resellers can prepare for the holidays.
Pin it for later ⤵️
The holiday season can be the most profitable time of year for resellers.
Blog posts may contain affiliate links, and as an Amazon associate I earn from qualifying purchases that create no additional costs to you.
The 4th Quarter (Q4), the last three months of the year, include Black Friday deals and Cyber Monday deals and other online shopping opportunities.
Q4 is almost always THE most important time of year for most eCommerce sellers. My online reselling business, for example, earns nearly 50% of annual profits during this time.
That’s why you need a game plan packed with insider tips for how resellers can prepare for the holiday shopping wave. So join me as we prepare to S.O.A.R. in Q4! Yes, acronyms can be silly, but they also can be helpful memory tools.
S.O.A.R. loosely stands for source, organize, advertise, research, though I recommend doing these activities in a slightly different order.
RESEARCH POPULAR PRODUCTS
Researching popular products to sell should be an ongoing part of your eCommerce business, especially during downtimes like Summer.
Your goal is to identify trends and themes, including colors, brands and products that are expected to be popular this holiday. You can also find out the top-sellers and profit potential for your niche.
So exactly how do you research popular products to sell? There are several ways to find this info.
Review your own year-over-year, month-over-month and season-over-season sales data to spot themes and trends for your shoppers.
Search for terms like “fashion”, “toys”, “kids” and “holidays 2022” on Google, YouTube, Pinterest, Etsy, Instagram, TikTok and the like to see what’s most popular.
Discover the top-sellers on marketplaces like Facebook, Shopify, Etsy, Poshmark, eBay, etc. And be sure to check platforms you don’t currently sell on.
Review marketplace trend reports released directly by selling platforms including Etsy, eBay, Poshmark, Mercari, etc. Check their sites or sign up for their email lists.
Attend seller conferences hosted by online selling marketplaces including Etsy, eBay, Poshmark, Amazon, etc. Many are virtual and free to attend!
Consider popular products and trends in popular culture. A great place to start is social media sites including TikTok, YouTube, Instagram and Pinterest.
STOCK UP ON SHIPPING SUPPLIES
Shop, shop, shop and then shop some more!
Shipping, Packing & Listing
It’s imperative that resellers have enough supplies on hand especially for shipping (boxes, bubble mailers, bubble wrap, tape, etc.), printing (labels, ink) and packing (business cards, thank-you cards, etc.).
You also want to ensure you have enough inventory to sell during the holiday rush. Most eCommerce sellers have zero extra time once the sales rush hits. Plus the shipping of supplies to YOU could be delayed just like order to your shoppers can be delayed.
PRO-TIP: If you have an eBay store subscription, don’t forget to use your quarterly coupon to order free shipping supplies. I currently have a basic store subscription which includes $25 per quarter. It’s not a lot, especially considering the cost of eBay supplies, but every dollar counts in our business🤑
ADVERTISE & ADJUST
Simply put, people can’t buy your products if they can’t find your products. That’s why marketing your shop is so important.
PRO-TIP: One of the best, yet underutilized platforms, is Pinterest where 97% of searches are NON-branded. It functions more like a search engine because the majority of users are in “search and discover” mode. Use this to your advantage to show off the unique designs or features of your products with an Idea Pin that introduces your products and brand.
Email and Sales
Send regular newsletters if you have an email list. Actively post helpful tips (not spammy sales notes) on relevant Facebook groups.
Create “holiday sales” or “flash sales” to create excitement – and value – for your customers. [Grab FREE sales sign templates for Poshmark or Instagram!]
Search Engine Optimization
One of the most important marketing tactics that many eCommerce sellers overlook is optimizing listings.
Revisit existing listings to confirm you have correct inventory levels on hand, pricing is current and other details.
And don’t forget to optimize titles and descriptions for SEO (search engine optimization)! This goes for new and existing products.
Resellers can update listings, including optimizing titles and descriptions, to market online products for sale.
Make These Adjustments
Adjust your prices to accommodate the temporary holiday shipping increases by the US Postal Service if you offer free or discounted shipping. Protect your profits!
If you don’t already do this, then outsource tasks! Seriously. Hire help for listings, shipping, prepping, SEO, copy writing, photographing … anything you don’t want to do or are not good at doing.
Fiverr is my personal fave for quick online tasks. They even have freelancers who focus solely on sharing your Poshmark closet. You can also try Upwork or hire a VA (which I also did on Fiverr).
ORGANIZE
This is a less-than-sexy part of business, but fine-tuning your processes can make or break your profits.
Ensure your inventory is easy to find, pack and ship. Ditto for shipping and packing supplies. You cannot afford to waste time looking for goods that have already been sold.
Consider pre-packing inventory, especially large or unusually shaped products. The last thing you need is to waste time running to a store last-minute hoping to find the perfect size box (assuming they are any in stock).
FINAL THOUGHTS
The holiday season, which is typically the last three months of the year, is an incredibly important time for eCommerce businesses. The 4th Quarter includes Black Friday, Cyber Monday and many other holidays.
These days, many of these shopping “days” have extended into weeklong events. Plus, the Q4 shopping surge can last throughout the following January.
So follow the tips I shared to know how resellers prepare for the holidays. This way, you can capitalize on this potentially profitable timespan.
Do you want to sell on eBay, but you’re not sure if it’s right for you? Or maybe you’re not sure how to start.
I love reselling on sites like Poshmark, Mercari and, of course, eBay. They are excellent secondary marketplaces to sell (and buy😉) pre-owned clothing and other products. Being a reseller is pretty easy once you get used to it – though it does take effort. For eBay, you just need to learn the rules, especially what you can’t sell, and tips to be successful with your eBay business.
eBay is an online marketplace best known for its auction-style and consumer-to-consumer sales.
This blog post is all about eBay for beginners who want to sell clothing and other items. You’ll learn the basics of how to sell on eBay and some helpful tips to become a successful eBay seller.
Blog posts may contain affiliate links and create no additional costs for you.
What is eBay?
If you don’t know what eBay is, it’s an online marketplace best known for its auction-style and consumer-to-consumer sales. In addition to individuals, many businesses open
aneBay store and use the platform as a primary or additional sales channel.
The platform opened in 1995 and has evolved into the huge marketplace that it is today. There are more than 19million sellers and more than 159 active users.
People from all over the world make money or purchases on eBay, and nearly anyone can open an eBay personal account – for individual sellers – or a business account – which allows you to sell large quantities – for free to start selling.
The model is quite simple. You find products like gently used clothes, accessories, household products, etc., at a good price and then resell them for more money on eBay. There are also lots of people who sell brand new, never used items. Just double-check eBay’s VeRo list to confirm brands that you are not allowed to sell.
Why Should I Sell on eBay?
If you’re wondering if you should sell on eBay, my answer is almost always yes! It’s easy to set up a personal or business account, and you get access to millions of customers. HEADS-UP: To be completely honest, listing items can be a huge pain in the butt compared to listing on PoshmarkorMercari. eBay has a growing list of required item specifics that can be a major time-suck. But that is offset by the large volume of potential customers.
Pin It For Later ⤵️
Selling on eBay is a flexible job that allows you to work from home and set any schedule you want.
You can sign up for an eBay account, list an item, and sell it all in one day. With eBay, you can sell new or used products as long as you do your research to see what sells on the platform. And to confirm what you cannot sell.
It’s generally cheap to start as you can find things you don’t use around the house that you want to get rid of and make money. Your eBay business can be a part-time side hustle or even a full-time job.
Selling oneBay is a flexible job that allows you to work from home and set any schedule you want. The flexibility is a draw for many sellers, including me!
Is It Worth It to Sell on eBay?
It really depends on what you’re selling on eBay. eBay is a great choice if you have new or pre-owned products to sell like collectibles, trading cards, electronics, games, toys and, yes, closting. It is worth noting that if you plan to start a business reselling clothes, you’ll want to consider a variety of platforms includingPoshmark, Depop, Grailed and others.
It’s all about doing the research to see what sells, how often and at what price point – all of which can change depending on seasons or shoppers’ moods.
New sellers can get started quickly and relatively easily.
Create An Account
First, you want to create an eBay account – either personal or business. New sellers can get started quickly and easily, and I recommend the personal account (you can change later, if you choose).
When you set up an account for your business on eBay, you need to create a user ID. If you already have an online business, you may want to make that your username.
This account and user ID is what you’ll use to make purchases as well.
Set Up Your Automatic Payment Method
Next, you want to set up your automatic payment method for your eBayaccount. You can connect a credit card or checking account.
This account is the one thateBay will deduct your insertion, final value and subscription fees (if you decide to get one), and other charges for selling on eBay.
Product Research + How to Find Items to Sell on eBay
The research piece is one of the most important parts of selling on eBay. If you don’t list popular, profitable products on the platform, then you’re wasting your time.
Thrifting (check out “examples of a reseller” and “common reselling strategies” for more on thrifting) andretail arbitrage are some of the best ways for eBay sellers to make money. In fact, they are some of the best ways to sell products on many e-commerce sites.
The key is finding things that customers want to buy.
The easiest way to see what items are in demand on eBay is to look at the data it provides. There are two methods to know.
A: You need to determine the sell-through rate of an item. This is essentially the number of listings sold compared to the number of active listings for that item on eBay, stated as a percentage.
A higher sell-through rate illustrates that there is demand for the product. All resellers have their own opinions about the ideal sell-through rate, especially for specific niches. In general, I aim for at least 60-70% but some need at least 50 percent.
To do this, search for your item on the eBay and take note of the number of active listings. Then, filter the search results by using the “Show Only” option to show only sold or completed listings.
Then take the sold number of listings and divide that by the active listings. This gives you the percentage.
A higher sell-through rate illustrates that there is demand for the product. All resellers have their own opinions about the ideal sell-through rate, especially for specific niches. In general, I aim for at least 60-70% but some need at least 50 percent.
B: Another research tool is Terapeak, eBay’s exclusive market analysis tool. Just search on an item you want to sell to get data on previous sales, demand and pricing. “Product Research” is now free to ALL sellers with access to Seller Hub. Terapeak “Sourcing Insights” offers sales data on every eBay category and other information and is free to sellers with an eBay Store Subscription.
The Most Popular Products on eBay
The most popular products sold on eBay include some of the following. But keep in mind shoppers may change with seasons or economic factors:
Garden and Patio – Outdoor furniture sets, canopies and awnings, panel fences, garden lighting, and BBQ tools and accessories.
Home and Garden – Vacuum cleaners, light bulbs, small appliances, lawn mowers, power tools, air tools, outdoor heating, eating and cooking products, etc.
Pet Supplies – Beds, grooming items, poultry products, and training and obedience items.
Automotive – Air and fuel delivery, interior car parts and accessories, exterior parts and accessories, lighting and bulbs, motorcycle parts, alternators, starters, wiring, and ECUs.
Clothing and Accessories – Women’s and Men’s clothing, accessories, and shoes, women’s handbags and bags.
Collectibles – Decorative collectibles, collectible matchboxes, lighters, other smoking items, military equipment, and World War II items.
Watches and Jewelry – Watches, watch parts, accessories, tools, guides, antique and vintage jewelry, fashion necklaces, bracelets, chards, pendants, and more.
Where Can I Find Popular Items to Sell on eBay if I’m Stuck?
If you’re completely stuck on finding items eBay buyers will purchase, here are some tips.
Know What Products are Trending
First, always be aware of trends. Some things are timeless, while other items are only popular for brief periods of time, then no one is willing to pay for them.
But if you stay on top of new and emerging trends, you can take advantage of these items and make a lot of money as they are rising in popularity.
This is where magazines, TikTok, Instagram, YouTube, Podcasts and other sources are helpful.
Everyday Common Products Generally Sell Well
While you can make a lot of money on trendy stuff, everyday items can be in demand. Try selling household necessities like toilet paper, paper towels, shampoo, and conditioner, etc. if this is the type of reselling you’re interested in.
Always Think Seasonally
Seasonality is significant in reselling for many categories like clothing, accessories, outdoor furniture and equipment, crafts, etc.
On average, you make less money selling coats or snow boots in the summer or swimsuits in the winter.
And the last quarter of the year is primie holiday season. So it’s historically one of the best times to make the most money for many businesses because people are buying gifts.
KEEP IN MIND: Just like time zones, the seasons may be different from you in another part of the world. And Christmas/holiday items can sell year-round #XmasinJuly.
Just be aware of the seasons when sourcing items you plan to sell. You often need to list things in advance to make sure customers can find them, especially if you do any marketing on Pinterest. and you can make eBay sales.
Where to Find Items to Sell on eBay
You’ll find plenty of ways to source great products you can sell on eBay. It just depends on your business model. A few ways are:
Buy things in bulk for a low price; think pallets, outlets, clearance sales, etc.
Local thrift shop
Neighborhood garage sale
Auctions, in-person or online (*this is one of my absolute favorites!)
Online stores, other e-commerce marketplaces. You can even buy individual items on sale at retail stores (Wal-Mart, Target, Dollar Store, etc.)
DON’T FORGET: Look out for vintage items. Older, retro or vintage items can be great products to list on eBay, depending on what they are. Often the more unique and collectible an item is, the more money you can make.
Thrift stores, garage sales and church sales are some of the best places to find hidden vintage treasures that customers love. Check out the “How Do Resellers Get Their Products?“ section for some ideas on where to source.
Items You Can NOT Sell on eBay
There is a very extensive list of products you may not sell on eBay. Read it and learn it, otherwise you risk being suspended or banned.
There is also a very exhaustive list of brands you may not sell or mention in your listings. This VeRO (Verified Rights Owner) list allows brands to keep sellers from infringing on their intellectual property rights. A very well-known example is that you are not allowed to say something has “Velcro.” Instead, it’s suggested that you say “hook-and-loop closure.” Seriously.
Selling on eBay: How to Create a Listing
Identify Your Item and Use Keywords
Once you have done some research and selected your products, it’s time to create your first listing!
When you sell an item on eBay, it’s important to show up in search results, so you want to make sure you use keywords in your title and product description so you can show up in the search engine algorithm.
There are a couple of ways you can list something on the platform – the advanced listing form and eBay’s quick listing tool. The quick listing tool is great for new eBay sellers because it guides you through the process, while the advanced listing form has additional features.
To get started with the quick listing tool, just enter the ISBN, UPC code or keywords that describe your product. To identify your products using the advanced tool, type the keywords for your item, then tap “Get Started.”
If you don’t know the keywords, you can find your product using the “Browse Categories” feature.
TITLE TEMPLATE: Brand + Item + Size + Other Descriptive Keywords
Depending on what you sell, listings can require several specifics.
Fixed Price vs. Auction Listings
Now it’s time to choose the type of listing. eBaygives you two options – auctions and buy-it-now listings.
Some items do better with auctions, while buy-it-now works well for many others. It really depends on the product.
With auctions, you set a time limit, and the highest bid wins once the auction is over. You’ll find this type of selling works well with rare, vintage and collectible items. But even then, many sellers select buy-it-now and allow shoppers to send a best-offer.
Auctions are also great for products that you aren’t worried about profitability on and/or you want to sell fast. However, you provide a starting price, and you can create a minimum amount that you’ll accept.
The “Buy It Now,” or fixed price listings are for items you want to make the most money on as you set the fixed price. These types of listings are best when you want to accept a specific price.
And you can allow shoppers to send you offers, which I do on all of my listings. You can set a minimum price you’re willing to consider and you can always counter or decline an offer.
How to Set Your Listing Duration
Once you decide on a selling format, it’s time to set the duration of your listings.
Things to consider:
Auction listings can last from one to 10 days.
Whether you want to set a duration or just leave them as “Good Until Cancelled.”
When potential buyers will be purchasing online – with auctions, more people bid when your auctions close. If you list something at 4 AM, it will end at 4 AM, and there won’t be as many people online.
4. Pricing Items on eBay
Now it’s time to price your listing. You can set a fixed price or you can create an auction. You will get different options either way.
You can also allow “Best Offer.” This option allows people to make offers that are lower than your list price.
Pricing on eBay is VERY important. Setting a competitive price affects your visibility in the search results, and it can’t be so high that buyers are scared off.
Many people just guess or estimate and throw a price up, but you must be strategic and do your research. Check “sold” comps to see how much others have paid for the same item recently. And also consider how many of that item are available; supply vs demand.
But make sure you look at the price of unsold listings too, because they can give you vital data as well. And many sellers use this info to set a price just lower than the current lowest price in hopes of getting the sale. This “race to the bottom” strategy is a bit controversial among sellers, but do what’s best for your business.
5. Set Up Your Shipping Options
The nice, and sometimes overwhelming, thing about eBay is they give you several shipping options. And eBay also offers discounts to sellers when they purchase shipping labels through eBay.
You may offer multiple shipping types to a buyer, such as USPS (First-class, Parcel, Priority Mail, Flat-Rate, etc), FedEx and UPS. And you can choose different shipping options for every item.
Having a scale so that you can weigh the exact amount for shipping is critical! Not only can incorrectly charging for shipping eat into profits, but your packages could be returned to you or worse, sent the buyer with a requirement that they pay additional fees.😟
It’s important to know that the shipping cost can affect whether an item sells or not. Many people don’t factor in these costs when they offer free shipping. If you don’t add this cost to your price, then shipping can eat into your profits.
Should you Offer Free Shipping?
Free shipping is a very attractive incentive to buyers and they may pay more for a product if it ships free. But it’s up to you whether to offer it or not.
I generally don’t offer free shipping. Approximately 10% of all of my listings have free shipping, and it’s usually lightweight items that may cost a few bucks to ship. But I do allow people to send offers to get a discount.
Many resellers will encourage you to make your shipping and return policies as buyer-friendly as possible. They say you should aim to offer free returns and free fast shipping. I say it’s a personal/business decision you need to make for yourself.
KEEP IN MIND: Buyers can sort items they are searching for by many factors including free shipping, free returns, accepts offers and many more.
eBay Guaranteed Delivery
eBay’sGuaranteed Delivery specifications are guidelines that promise customers that they will receive their purchases by a specific date.
There are several requirements for your listing to qualify for Guaranteed Delivery:
Pin It For Later ⤵️
Buyers can sort items they are searching for by many factors.
You must include the postal code for your item in the listing.
Resellers offering same-day delivery should set a reasonable cut-off point.
International: GSP or Not?
You can also choose to offer international shipping. You can go through GPS (Global Shipping Program), which is much easier for sellers, but more expensive for buyers. You just ship the item to a shipping center in the U.S. and then eBay ships it to the customer’s international destination. There are no additional forms or fees for you to worry about.
Or you can use International Shipping, which is a bit more complex for sellers, yet cheaper – and more attractive – for buyers.
I personally use GPS, because it opens up my items to more shoppers while keeping things easier for me.
6.Return Policy
I mentioned a return policy a little bit above. The nice thing about eBay versus other platforms is that you can set your own return policy as a seller.
eBay’s Money Back Guarantee protects buyers when they receive an item that doesn’t match the description (INAD – item not as described) or is damaged.
You don’t have to offer returns, but this could affect your conversions as people may not want to take a chance on your listing. Many eBay sellers say that in our current “Amazon Age”, returns are required to succeed.
Offering 30-day or 60-day returns to buyers can increase your conversion rate and help you sell more items. And you don’t always have to pay for the return.
As a seller you get a certain number of free listings. eBay gives each seller 250 insertion-free listings per month. For some people, that might be all they need.
After you use your 250 free listings you will pay insertion fees. Here is what to keep in mind with these insertion fees:
They are non-refundable even if your item doesn’t sell
These fees are only charged once per listing even for listings that include multiple items.
They are charged per category and per listing. If you list an item in more than one category, you will pay for each category.
These fees are charged for the original listing every time you relist your product.
They are charged per listing if you create duplicate listings for identical items in auction-style formats.
There are also final value fees. A final value fee is charged once your product sells and is calculated as a percentage of the total amount of the sale. Sales tax, shipping services, handling charges, and the price of the item are included in the final value fee.
There are also some basic fees that differ per category. You can learn more aboutall eBay seller fees here.
Things to Do After You List an Item on eBay
Once you’ve listed an item on eBay, your job isn’t over yet. There are some things you still need to do.
No time to relax yet!
Managing Your Listings
Once your listing goes live on the website, you’ll get an email saying that it’s active. After this, you’ll be managing your listing which could mean engaging with potential customers, answering questions or responding to offers.
DON’T FORGET: Make sure to check your account or email daily! You don’t want to miss questions, offers or sales. I did this once and thankfully was able to reconnect with the shopper. But I learned my lesson that day.
Of course, once you make a sale, you’ll be shipping your buyer’s purchase.
How to Promote Your Listings and eBay Store
You’ll also want to promote your store or items listed. You can actually do this right on eBay with ads. You can set up a promoted listing under the “Sell It Faster” option.
It’s much easier than some other platforms. There are no daily budgets, keywords, etc. to track. The rate for your ad is a certain percentage of the final sale price, and you are only charged if the item sells.
You can also promote your store (if you have one) or just your listings on your personal website, social media accounts (Instagram, Pinterest, YouTube andTikTok are all great) and email newsletter if you have one.
What to Do After You Sell an Item on eBay
How to Ship Items on eBay
Once an item sells on eBay, the buyer receives a confirmation email and has several days to actually pay for it unless you require immediate payment. Like many things with eBay, this is a controversial policy that they say will go away but never does.
Pin It For Later ⤵️
Before you ship an item, make sure the buyer has paid for it
Before you ship an item, make sure the buyer has paid for it. You’ll get confirmation in your account and via email. Then make sure you create a great customer experience by ensuring that you:
Use the shipping service specified in your listing
Then leave feedback for the buyers and if you run into any issues, make sure you communicate with the buyer.
Do everything right, and the customer will likely leave you positive feedback.
KEEP IN MIND: “Feedback” is another contested area on eBay. Sellers are not allowed to leave any negative feedback for a buyer, no matter what happens. Seriously.
And some buyers use feedback as hostage by incorrectly claiming INADs (Item Not As Described) or by requesting refunds. Just beware!
Tips for Selling on eBay
Here are some tips for selling your items on eBay.
Pin It For Later ⤵️
Tips & Tricks
Turn on International Shipping
It’s easy to turn on international shipping, especially GSP. So take advantage of this expanded marketplace as more people will have access to your items.
Look for Deals Online
If you do your research, you can find great places to source your items. There’s a website calledbrickseek.com that allows you to see online deals on products. If you search by zip code, you can find local deals.
Consider Signing Up for an eBay Store Subscription
As you grow your reselling business, consider signing up for an eBay store. They have five main subscriptions with different benefits:
Starter
Basic
Premium
Anchor
Enterprise
You get many benefits, like access to additional tools you can use to manage your business, discounted seller fees, FREE SHIPPING SUPPLIES every quarter and more. Learn more about eBay stores here.
Join Reseller Groups
New eBay sellers can benefit from the various reselling communities that share tips and support each other.
eBay has an exclusive market analysis tool calledTerapeak . The “Product Research” is now free to all sellers with access to Seller Hub. Terapeak “Sourcing Insights” offers sales data on every eBay category and other information and is free to all sellers with an eBay Store Subscription.
REMINDER: You do NOT need a store subscription to start selling on eBay. And I recommend you sell some items before you decide to purchase a subscription, just to make sure that it’s worth the monthly cost for your business.
This tool uses the most recent eBay data on pricing, supply and demand to help you identify trends. And, you will also know what products to market, what price to sell them at and when to list them.
Tools like this make the research part of selling easier.
FAQs
Do I need PayPal to sell on eBay?
No. eBay has a “Managed Payments System.” This connects to your credit card or bank account and is the preferred method of payment for sellers to pay their fees.
Selling on eBay can be very profitable
Do I need a bank account to sell on eBay?
You don’t need to connect a bank account to list products on eBay. However, if you want to receive payments from eBay you need to connect a bank account.
Is it free to list on eBay?
Each seller gets 250 free listings each month; after that, you must pay an insertion fee. So, many sellers using eBay as a side hustle won’t pay to list things. But professional sellers will pay more.
How long does it take to get paid on eBay?
Once a buyer’s purchase is confirmed and paid for, eBay initiates your payment, which is made to your checking account or debit card. It typically takes one to three business days for your bank to receive the funds.
Final Thoughts on How to Sell On eBay
Selling oneBaycan be very profitable if you know what items to list, when to sell them and how much to charge. You must pay attention to trends and seasons, so that you list items people want to buy.
Plus, you need to find places to source good products at a great price.
You’ll find eBay has plenty of resources to help you get started. Learn the platform and guidelines, and you can earn great money selling oneBay.
You may also be interested in these other posts on reselling:
Are you wondering, “Does Poshmark pay for shipping?”
The short answer is No. BUT sometimes Poshmark offers discounted and even free shipping for buyers.
If you’re new to selling on Poshmark (or want to start), maybe you want to better understand shipping? You may even have an item that weighs more than the flat rate shipping covers, and you need to upgrade your shipping label.
Pin It For Later ⤵️
Whether you’re a seller or buyer, Poshmark shipping may cause questions.
Or have you found the perfect top on Poshmark as a buyer, but went to checkout and was shocked at how much the shipping cost raises the price?
Whether you’re a seller or buyer, Poshmark shipping makes you question things.
Like, why do you need to upgrade shipping labels as a seller, and why is Poshmark shipping so expensive for buyers? Can you get free shipping on Poshmark?
Like other reselling platforms including Mercari and eBay, there are ways to save money on everything you buy on Poshmark.
In this article, I will answer all of these questions and give you some tips for dealing with Poshmark shipping as a buyer or a seller.
Blog posts may contain affiliate links and create no additional costs for you.
How Does Shipping Work with Poshmark?
Pin It For Later ⤵️
The buyer typically pays a flat-rate for shipping up to a 5 lbs.
Here’s the big question people want to know the answer to, “Does Poshmark pay for shipping?” The answer is No; Poshmark does not typically pay for shipping, although they do offer shipping discounts occasionally. The buyer typically pays a flat-rate for shipping up to a 5 lbs. If the package weighs more, then the seller must upgrade the shipping label and cover the additional cost.
PRO-TIP: If you know what you’re selling weighs more than 5 lbs, then include the cost of extra shipping into the price of the item(s) to avoid reducing your profit margins.
Once you make a sale and the item is paid for, Poshmark emails you a pre-paid standard shipping label for USPS Priority Mail. You must use this shipping label so that Poshmark can track the package.
If the package is stolen or lost, you get all your money back, so you aren’t out anything. It’s a guarantee for both the buyer and the seller.
Determining the correct total weight of your package is essential. If it weighs too much and you don’t upgrade your label, the U.S. Postal Service won’t ship the package since it exceeds the weight on the shipping label.
PRO-TIP: I highly recommend that any reseller, especially newbies, purchase a scale (This is the scale I bought and still use).
Who Determines Shipping Cost on Poshmark?
Poshmark shipping is a flat-rate fee of $7.67 for expedited shipping with the postal service on all orders. They go by USPS Priority Mail flat rate shipping rates.
How Much Does It Cost to Ship With Poshmark?
As long as the weight doesn’t exceed 5 pounds, the shipping fee for Poshmark is a flat rate of $7.67 for 1-3 day Priority Shipping. This is paid by the buyer. For packages over 5 lbs, the seller needs to upgrade the shipping label and over the cost. The one exception is Closet Clear Out days, which are usually Friday and Sunday. This is a special discount day, when sellers can drop an item’s public price by at least 10% (final price MUST be at least $10), andPoshmark will automatically offer the buyer a discounted shipping rate of $5.95. The difference of $1.72 is covered by Poshmark and not the seller.
Pin It For Later ⤵️
Shipping costs for buyers and sellers are pretty fair considering the increased USPS rates over 1 pound.
Here is the pricing chart for the upgraded shipping label:
Package Weight
Label Upgrade Fee
Up to 5 pounds
No additional charge
6 pounds
$4.50
7 pounds
$9.00
8 pounds
$13.50
9 pounds
$18.00
10 pounds
$22.50
Shipping costs for buyers and sellers are pretty fair considering the increased USPS Post Office rates. It’s actually a good deal for anything weighing over a pound, as typical shipping fees can cost more depending on where you are sending something.
You can cut down on shipping costs as a Poshmark seller by getting free shipping boxes and envelopes on the USPS website or at your local post office. I recommend shipping all your items in free supplies when possible to increase your profit margin.
You can keep various-sized boxes on hand so that you can ship sales quickly. That way, you will always have the right-sized box for your needs.
Why is Poshmark Shipping So Expensive?
If you’re shipping a small piece of jewelry, then it is more expensive because Poshmark only uses priority mail labels.
Poshmark shipping may seem expensive to some people because the first-class mail rate for items that weigh less than a pound, especially 8oz or less, is much lower on other marketplaces like eBay and Mercari.
The shipping fee of $7.67 is great if you’re mailing multiple things or a heavier item. But if all you’re shipping is a small piece of jewelry, then it is more expensive as Poshmark only uses priority mail labels for shipping.
Here are some of the other reasons shipping orders on Poshmark is pricier, in some ways:
Poshmark provides customer service, so this cost is added in.
They track the packages and help handle customer complaints.
Of course, no one wants to pay for shipping if they don’t need to, so there are some tricks to get discounted shipping on Poshmark.
NOTE: Shipping rates change, so this is the current amount for flat rate shipping at the time I’m writing this post.
How Do I Reduce the Cost of Shipping on Poshmark?
The best way to get a reduced shipping rate is to use some of Poshmark’s features to have the customer pay, Poshmark pay, and/or the seller pay for part of the cost of shipping. These features are the best way to get shipping discounts.
Did you know that buyers can negotiate with sellers to pay for all or part of the shipping on items? So, keep that in mind as a Poshmark customer (which many resellers are!) and as a buyer thinking of selling tactics (discover one way to nail your sales strategy).
Buyer Pays Poshmark Shipping
This is the standard shipping practice on the platform. Unless a Poshmark seller pays part of the shipping or unless it’s Closet Clear Out, then this is the default shipping setting.
Did you know that sellers can pay for all or part of the shipping fees as an incentive?
Buyers can filter search results to offers with free shipping or discounted shipping. Keep in mind that many sellers won’t offer a discount for shipping. If they do, it may be a small discount, while some sellers offer free shipping on orders over $100.
Here’s an example breakdown if a seller pays for shipping:
Item Sales Price: $90
Poshmark Fee (20%): -$18
Shipping Cost: -$7.67
Total Profit: =$64.33 vs. $72
That’s a 12% loss without adding in the cost of purchasing the item or time spent sourcing, cleaning, steaming, photographing, packing and shipping.
So, while sellers have the option of providing reduced or free shipping on Poshmark, many may choose not to because it eats away at sales profits. The smaller the profit margin, the less likely a reseller will offer you discounted shipping.
Seller Pays Poshmark Shipping
While some sellers won’t give a shipping discount, they have the option to give buyers a discount or offer free shipping. Here are the options sellers have when listing items:
$5.95 Shipping: The seller pays $1.72, and the buyer pays $5.95
$4.99 Shipping: The seller pays $2.68, and the customer pays $4.99
Free Shipping: The seller pays the full $7.67
No Discounted Shipping: The buyer pays the full $7.67
Buyers can also get the same price for shipping if they bundle items. When you bundle items, the seller may reduce shipping as a nice perk.
It also helps sellers save on supplies when they can ship multiple items in one box.
Poshmark Pays Discounted Shipping
Poshmark doesn’t generally pay the shipping costs; buyers do. And sometimes sellers do. However, there are two exceptions.
The first is when Poshmark has flash sales on shipping costs. It’s pretty random and not on a regular schedule. But they will announce beforehand the exact time they will offer free shipping for a set timeframe. And lots of sellers will promote it in their closets or on social media.
Do you want to get started on Poshmark? Sign up with code THRIFTYIQ and get $10 toward your first purchase!
The other key exception is Closet Clear Out days, which are usually Friday and Sunday, plus some bonus holidays. This is one of my absolute favorite features to drive sales on Poshmark!
This is a special discount day, when sellers can drop an item’s public price by at least 10% (final price MUST be at least $10) andPoshmark will automatically offer the buyer a discounted shipping rate of $5.95. This usually lasts for 6 hours after the price drop. The difference of $1.72 is covered by Poshmark and not the seller.
Making Offers
Sellers can also provide a discount on shipping fees when they list items and when sending offers to potential buyers. They can use the “Make Offer to Likers” feature to send offers to people that have liked an item.
I think the “Make Offer to Likers” feature is a great way to reward repeat customers or convince “likers” to become “buyers.”
NOTE: As a buyer, you can negotiate an item or bundle’s price through the “Make an Offer” feature. But it does not allow you to request discounted shipping. This is why Closet Clear Out is so great; it’s one of the only times a buyer can ask a seller for a shipping discount, but Poshmark pays for it. Win-win!
How Do I Avoid Shipping Charges on Poshmark or Get Free Shipping?
As a buyer, accept offers sent to you that include free or discounted Poshmark shipping.
As you can see, there are several ways to get a discount or free shipping on Poshmark as a customer.
Shop during Closet Clear Out days (usually Friday/Sunday); you may have to ask seller for price drop, which is what triggers the shipping discount
Negotiate with the seller
Look specifically for listings that offer free or discounted shipping
Accept offers sent to you that include free or discounted Poshmark shipping
Look for Poshmark promotions and deals at certain times of the year
Final Thoughts on Does Poshmark Pay for Shipping
Pin It For Later ⤵️
Closet Clear Out days, usually Friday and Sunday, are when Poshmark pays for discounted shipping.
Selling on Poshmark is a great way to make money and buying on the platform lets you score good deals and rare finds (which a lot of resellers do as well!). But shipping can be a pain.
Depending on sales prices, buyers can negotiate with sellers on the cost to ship items or even get free or reduced shipping in certain instances. It really just depends on the seller and their profit margin.
Regardless, as a customer, you can always get a deal on Poshmark on every purchase you make as compared to retail prices. Bundle to get items in fewer packages, and that could also save money.
As a seller, providing free or reduced shipping affects your profits, but it can be worth it to move inventory or reward buyers who frequent your closet.
And don’t forget to take advantage of Closet Clear Out, when Poshmark covers discounted shipping every week.
So you want to start a reselling business? That’s great! Reselling is a fantastic way to make extra money, and it’s something that anyone can do with the right information.
Pin It For Later ⤵️
Retail arbitrage is taking advantage of discounts or sales at a retailer like Wal-Mart, Target or the Dollar Tree and then reselling them for a profit.
In this guide, I will share everything you need to know about starting a reseller business. You’ll learn the answer to “what is a reseller?” and what an online reselling shop is. I’ll also let you know the benefits and some pitfalls of running an online reselling business.
Selling on places like eBay, Poshmarkand Mercarihas given me freedom like no traditional job could, and I’d love to share my experience with you. Are you ready to learn more? Let’s get started!
Blog posts may contain affiliate links and creates no additional cost for you.
What is a Reseller?
A reseller is a person or business who buys products from a manufacturer or supplier and then sells them to customers, usually at a higher price.
To start a reselling business, you’ll need to find products you can sell. After you decide on the types of products you sell, you can look for suppliers (including thrift, retail and your own home!) or other marketplaces to buy them at a good price.
Once you figure out what to sell and where to get the products from, you’re on your way to starting a reselling business.
Buy low, sell high – it’s a simple business model that almost anyone can do.
What Does a Reseller Do?
Basically, a reseller buys products from suppliers or manufacturers (or raids your own closets) and sells them to customers at a higher price.
Pin It For Later ⤵️
Buy low, sell high – it’s a simple business model that almost anyone can do.
To be successful as a reseller, you’ll need to find reliable inventory from suppliers who offer good prices on the products your buyers want. This can be as simple as shopping at your favorite thrift store or garage sale for inventory.
When I started, I chose items from my closet and I bought a mix of items (clothes, shoes, dresses, office supplies, home decor, etc.) at a local Goodwill just so I could test things out and learn what actually sells.
You’ll also need to create a system for marketing and selling your products so that you can reach your target market.
The nice thing is, in some cases, you don’t have to keep a lot of inventory on hand or pay much to market your product, especially if you start a dropshipping business. And you can start reselling clothing and accessories on platforms like Poshmarkand eBay with very little money invested up front.
Online resellers are similar to retail stores, except they don’t have brick-and-mortar locations. They simply sell to customers online instead of in-store.
What Type of Business is a Reseller?
A reseller business model is a type of eCommerce where you typically sell products online, usually through a platform like Amazon, eBay, Facebook, Poshmark, Etsy, Mercari, your own website or many other platforms.
There are many reselling opportunities out there, like selling sneakers, fashion, vintage items, jewelry, home decor, comic books or other collectibles. Or you could even start a consignment store or vintage boutique.
What Are Examples of a Reseller?
RETAIL ARBITRAGE: One example of a reseller is an Amazon FBA seller. Amazon FBA (fulfilled by Amazon) is a program where you can sell products on Amazon, and they will store, ship, and provide customer service for your products. Many of these sellers utilize retail arbitrage to secure inventory to sell (Reseller Nikki Kirk has some great tips on this strategy).
NOTE: Some sellers (like me) also sell as Amazon FBM (fulfilled by merchant), which means the seller handles storage and shipping.
WHOLESALE: Another example is a seller who buys products from wholesalers, manufacturers or authorized dealers and then sells them on eBay at a higher price. This type of seller typically buys in bulk or larger quantities.
THRIFTING/GARAGE SALES: Some sellers who buy and sell clothing, accessories and other products on places like Mercari orPoshmark, frequently shop at thrift stores, garage sales, yard sales, flea markets, consignment shops and the like. You can also source online at auctions or even on your selling platforms. You typically buy individual or a small number of items but can sometimes work out deals for larger quantities depending on the situation (reseller MsTaffy often shops at Goodwill clearance centers aka The Bins).
DROPSHIPPING: Dropshipping is another type of reselling business, and the best thing about it is that you can use platforms like Amazon or Shopify to sell products without keeping any inventory in stock.
Adropshipping business uses a unique method of order fulfillment in which you buy inventory as needed from a third-party manufacturer or wholesaler, who typically ships it directly to the buyer. The dropshipper or reseller acts as the middleman coordinating between the buyer and the manufacturer.
How Does a Reseller Make Money?
Many say the profit is in the purchase.
Resellers make money by buying products at a certain price and then reselling them at a higher price (consider when you should list items as “price is firm“). Most resellers sell products online, but some open physical brick-and-mortar shops.
It’s a fine balance to make a profit as a reseller. You must consider the cost of the item AS WELL AS any fees you pay to sell that item.
You also must regularly research the current value of items, which change depending on seasons and buyer opinions. As such, many say the profit is in the purchase, because the lower the cost of the item, the higher the potential profit even when you must lower prices to incentivize sales.
How Much Do Online Resellers Make?
This is a difficult question to answer as resellers can make different amounts depending on the products they sell, how much they sell, how much they work, their profit margins and other factors.
Just look at any reselling influencer that shares their income and you will see ranges from a few bucks a month to hundreds a month to 6-figure annual incomes and even higher (The Nurse Flipper makes a full-time income by reselling).
Some resellers make a full-time income while others only supplement their income with their online reselling business. But really the sky is the limit with the income you can make with a reseller business. And once you get the hang of it, you start making more money.
As long as you have products that paying customers want, the reseller business model is a smart one. It’s a great type of business to make money reselling online.
How Do Resellers Get Their Products?
There are a few ways resellers can get their products. They could source them from wholesalers, manufacturers, other retailers, or even online marketplaces like Amazon or eBay.
Running a successful reseller business means you have to research what to charge for products and services.
Another option is to source products locally at garage sales, thrift shops, or even on clearance at stores like Dollar Tree, Target or Wal-Mart. Once you find a product, you can research it online and see if it’s selling for more than you paid for it. If it’s enough to cover ALL of your expenses AND leave you profit, then you’ve found yourself a winning product to resell.
Running a successful reseller business means you have to research what to charge for products and services.
If you don’t know how much customers will pay for something, then you could price items too high, and they won’t sell. Or, if you’re reselling things too low, you won’t make enough profit to make it worth the work involved.
What is the Difference Between Wholesale and Retail?
The difference between wholesale and retail is that wholesale is the sale of goods or services in larger quantities at lower prices. While retail is the sale of these same goods or services in small quantities directly to consumers.
Many resellers like to use wholesalers to source inventory or other places where they can buy things at low costs so they can increase profitability. Finding products during good sales helps you increase your profit margin so you can earn more.
Where Do Resellers Sell Their Products?
Resellers can offer products online at many places.
Resellers can offer products online at many places, including:
YES: In general, it is legal to resell products that you have lawfully acquired. You are allowed to resell products you bought at a store, and there are entire online communities dedicated to reselling on the secondary market, like Facebook Marketplace and Poshmark.
Pin It For Later ⤵️
eBay has a VeRO (verified rights owner) list of brand limitations.
NO: There are exceptions, however, such as copyrighted material, trade secrets, guns (though you can sometimes sell gun parts on certain platforms), counterfeit or imitation designer goods, foods and drugs. But detailed exclusions depend on the marketplace.
MORE LIMITATIONS: Also, some brand names may have limitations when reselling their products online and may explicitly say that reselling is not allowed. Meanwhile, some brands may allow reselling, but they may not allow you to use their promotional materials or copyrighted photos in your listings.
EVEN MORE LIMITATIONS: eBay has a specific VeRO (verified rights owner) list to see its brand limitations. A great example is the brand VELCRO. You can’t use that trademark as a description in your listing unless you are referring to the genuine fastener. Many manufacturers have rules about using their trademarks as descriptions as well as selling certain brands.
I CANNOT STRESS THIS ENOUGH:You must abide by the rules of the marketplaces where you sell! They are all different, and if you do not follow the rules, your store can be suspended or shut down completely (find out why eBay permanently suspended this prominent reseller).
WARNING: It is imperative to review and understand the terms of service for each marketplace. (Photo courtesy of Muhammad Daudy/Unsplash)
Do You Need a Business License to Resell?
Generally speaking, you do not need a business license to resell items online. But each state and city is different, so check with your local municipality to be certain.
You also don’t necessarily need an LLC or something similar to resell. But you may choose to create one for liability protection or other reasons.
Either way, you are generally allowed to deduct business expenses, but check with a tax professional and your local guidelines to confirm specifics.
Separately, most states offer what is called a resale certificate or a seller’s permit. This is a special document you can apply for that allows certain resellers to make purchases without paying taxes to avoid paying taxes twice.
However, if you’re just starting out, it’s probably not worth getting a business license unless you have to. There can be a significant cost or time to get any state or local license, and you want to first confirm you actually plan to continue reselling.
What are the Benefits of Being a Reseller?
Selling products as a reseller has many benefits!
Flexibility
Starting a reselling store is a flexible business you can do from home. It allows you to pick from a wide range of products and manufacturers, and you don’t need a huge inventory to start. Many people start with items in their own closets and attics.
Pin It For Later ⤵️
Starting a reselling store is a flexible business you can do from home.
Dropshipping businesses require even less space for product inventory.
Best of all, you determine your own schedule! This allows you to choose when, how often and how long to work on any given day. That means more freedom for you to do what you choose.
You Can Expand Fast
The profitability and flexibility of reselling make it easy to scale your business and grow quickly, if you choose. If you use smart online marketing tactics and build strong relationships with suppliers, you can grow even faster.
Reselling Businesses Don’t Require Much Money to Start
You can start a resale business with very little to no monetary investment. You can start by selling things around your house and even get items from friends and family who want to get rid of items. Then you can reinvest the money you make into buying more inventory. You’ll also need some shipping supplies (check below for some tips on what to spend).
Pro-tip: I recommend buying a good scale to manage shipping costs (find more details below under “what tools you need”).
How Do I Become an Online Reseller?
The process of starting a resale business is simple.
Pin It For Later ⤵️
Decide the type of resale business you want to start.
Do you want to get started on Poshmark? Sign up with code THRIFTYIQ and get $10 toward your first purchase!
Decide the type of resale business you want to start (selling clothes, vintage goods, books, comics, etc.).
Choose the platforms you want to sell on and create accounts
Pro-tip: I recommend starting with one or two marketplaces max so that you can get comfortable with the process.
When you’re ready, try a cross-listing tool like List Perfectly to help you quickly share listings to multiple platforms.
Review all the selling rules on these platforms.
Find items to sell, including from your own house; do some research on the specific items by checking similar items that have recently sold on those marketplaces (i.e. check the comps)
Prep the items if needed, including cleaning, pressing, taking measurements, etc., and then take clear photos in good lighting.
Whenever someone asks a question, reply. And if they make a purchase, package the item neatly and professionally and follow the shipping rules (check out this guide on Poshmark shipping).
Try to invest profits into more inventory or resources to improve your efficiency.
Common Reselling Strategies
Pin It For Later ⤵️
The less you pay for items to sell, the more you will make reselling them. Here are a few helpful strategies you can use:
Thrifting
Thrifting is going to thrift shops, garage sales, flea markets or other places that sell pre-owned products. These can be great sources of highly sought-after vintage fashion, games, tools, electronics and more.
Retail Arbitrage
Retail arbitrage is taking advantage of discounts or sales at a retailer likeWal-Mart,Target or the Dollar Tree and then reselling them for a profit.
Online Arbitrage
Online arbitrage is similar to retail arbitrage, except you buy from a store online like eBay, Walmart, etc. The online arbitrage process is one of the most popular ways to resell, and you can sometimes find other resellers looking to get rid of their inventory (Reseller Steve Raiken has lots of video tips (Reseller Steve Raiken breaks down his Top 3 Strategies to Grow).
Wholesale
This strategy involves obtaining products from a wholesaler and then reselling them. It’s often less expensive per item to buy in bulk, but may require a larger upfront expense.
What Tools Do You Need to Get Started?
Beyond the items you are going to sell, I mentioned a scale to help you manage shipping costs.
There are huge differences among costs to ship 4 oz, 8 oz, and 16 oz, and this can be a dealbreaker for a customer – or a profit buster if you offer free shipping. You can purchase a good scale for as low as $25. This is the first one I ever bought and it still works great.
You’ll also need shipping supplies, which you can get free at the post office if you are shipping Priority Mail. For First Class (typically less than 1 pound), you can get supplies at warehouses and other places that throw away their boxes. You can also recycle boxes from deliveries you or your family gets or buy ultra low-cost supplies at discount stores or on eBay or Amazon.
Pitfalls and Other Things to Consider
If being a reseller sounds perfect to you, then there are some things to consider and avoid.
Sales Slumps
Sometimes sales slow down, which is sometimes called as a sales slump. One of the most talked about stalls among resellers is the summer slow-down, and often, it’s beyond your control which can be frustrating. Meanwhile, sales may be better at certain times of the year, like Q4 (October-December). And certain items sell better at specific times of the year as well.
Pin It For Later ⤵️
Sometimes sales slow down, so you must organize your finances or have multiple income sources to accommodate these slumps.
Seasonality
Sales slumps lead me to seasonality. Q4 (October-December) is typically a major money-making season for most retail, including resellers. And holidays like Memorial Day and the 4th of July can mean fewer sales because more families are doing outside activities instead of shopping. At the same time, notable dates such as Halloween, start of summer and Black Friday
Trends
If you’re selling clothing and accessories like I do, trends play a huge part in sales. Fashion trends change all the time, and it’s the same with other items too (check out this Pinterest board for some popular items to sell). This directly affects the price you could potentially earn.
So, pay attention to what’s popular and try to jump on trends as soon as possible so you can take advantage of them. If you sell the right things at the right time, you can make excellent profits.
Economic and Societal Issues
Changing habits and issues like inflation can have a significant impact on shopping in-person or online. The COVID-19 pandemic is a perfect example when people did the vast majority of their shopping online. This created a huge business opportunity for resellers.
Just a couple years later, as restaurants, stores and entertainment venues reopened fully, more people wanted to break free of their homes. As such, online sales declined, creating a major slump for many online resellers.
Similarly, during inflation the prices of nearly everything rise – gas, groceries, housing, etc. As a result, many people don’t have additional funds to shop for non-essentials as much (get the best reselling tips from Pinterest).
Final Thoughts on What is a Reseller
Now you know the ins and outs of becoming a reseller and starting a reselling business. It’s fairly simple to start with very little upfront costs, and the process isn’t too complicated. But it does require work, especially if you plan to sell secondary clothing and shoes.
Pin It For Later ⤵️
The sky is the limit with the amount of money you can make.
The sky is the limit with the amount of money you can make as long as you identify profitable inventory and make adjustments as you go. Don’t forget to follow each platform’s rules. And pay attention to photos, marketing, shipping, customer service and other areas that can impact sales.
I’d love to hear about you! Are you a new reseller? Thinking about taking the dive? Is there anything else you would add to this list? Let me know in the comments!
As a new buyer or reseller of fashion and products on platforms like eBay, Poshmark and Mercari, you’ve probably seen the phrase “firm on price” or “price firm.” But what does that mean? Many people think it means that the seller isn’t willing to negotiate on price, but that is not always completely accurate.
Pin It For Later ⤵️
Some people think the “firm on price” meaning indicates sellers are not willing to negotiate. That’s not always completely true.
Blog posts may contain affiliate links, and creates no additional cost for you.
When I first started my resale business, I made plenty of mistakes, which is why my goal is to help you avoid them! And, I’ve seen people use “firm price” and “fixed price” interchangeably, and that can be really confusing.
For example, understanding the phrases buyers and sellers use in this market can be a chore in itself. So, if you plan on making reselling an actual business, even just part-time, you’ll want to learn as much as you can about how to sell on a variety of platforms.
In this post, I’m discussing the firm on price meaning as well as what “fixed price” means and other helpful things you need to know about it.
What Does Firm on Price Mean?
So, what am I talking about when I say firm on price meaning?
Normally, firm on price means that the seller has set a specific price for a product, and they won’t accept anything less. But that doesn’t mean that they aren’t willing to negotiate.
This Poshmark seller @mateodaking is firm on prices $10 and below, but may be open to negotiating bundles of multiple items.
The seller may be open to negotiating other parts of the deal like shipping costs or payment terms. This is true on secondary marketplaces like eBay and Poshmark (find out how to cancel an order on Poshmark), but it’s especially true if the seller has something like Shopify or their own eCommerce website.
And sometimes, if the item has been listed a while, they may accept a reasonable offer, not something crazy low though.
In general, a “fair” offer is 5%-35% less than the list price. If you ask for a 40% or higher discount, you run the risk of insulting the seller (but like most things in reselling – there are exceptions).
@thriftyIQ
You may also see the term firm-fixed-price that applies to a specific type of contract. A firm-fixed-price contract is an agreement with a predetermined value for a service or product that is provided – it’s related, but not like the prices of goods you’re selling on sites like Mercari that this article is about.
Should You Negotiate with the Seller or Buyer if the Listing Says Firm on Price?
It really depends on factors like how old the listing is and if there is room for negotiating, etc. As a buyer, if the price is already low, the person likely won’t budge. But I’ve sent reasonable offers that weren’t insulting and have scored some really good deals on my favorite purchases.
It’s much better to approach people about the product in general before you start asking for a lower price. And you may not even want to approach a lower price at all as you could ask for free or reduced shipping or something similar.
Pin It For Later ⤵️
The seller @lvoe_4ever explains they are unwilling to negotiate further on discounted offers they send to likers.
It’s always better to build a rapport with them first, and then start talking about a lower price later if you feel the item is overpriced.
Waiting is your best strategy for deep-discount offers. Then in a few days (or weeks or months, depending on the item), if the item hasn’t sold and you still want it, it’s fine to approach the seller about a lower price. If you want to negotiate with a seller, sometimes letting them know that you saw it was a firm price is typically enough to open them up to negotiation. Since it also proves you read their listing and didn’t ignore it all together.
As a seller, it’s totally up to you and really depends on the situation. Like shopping for a new car, just be prepared to walk away if the person won’t accept your deal.
As a Seller, Do I Ever Negotiate On My Prices?
Absolutely! When I’m listing items, I’m open to negotiation depending on the circumstances. When you sell things on platforms like Poshmark or eBay, you can just price the product slightly higher so that room for some negotiation is built in without listing items as firm prices.
In fact, I promote the fact that I’m open to negotiation with potential buyers. This is especially helpful on marketplaces like Mercari (see image below), where offers are less of the norm compared to Poshmark, where buyers seem to make a sport out of trying to get a lower price😬. My goal is to make buyers feel less awkward about making a lower offer, and to let them know that I won’t be insulted – I either accept or counter with my lowest price.
My actual negotiation offer on Mercari
The 1st gold star of one of my Mercari listings explains that I’m open to a buyer’s discounted offer.
As such, a number of things I sell are typically priced slightly higher for negotiating, but also to cover the cost of cleaning, listing, packaging and shipping the item. But I caution you to not raise your prices too high, or no one will pay for them because your competition will constantly beat out on price.
People often list their items at a firm price when they know the true market value of their product. Or they might recognize the item is in high demand and low supply, or because they think they are offering a deal.
But sometimes they’re wrong. I’ve seen people list pre-owned products at a higher price than the cost to buy them new. Of course, that may be perfectly acceptable for certain items in ultra high demand.
But, there are times when the seller has not done their research to see what the actual sales of comparable items are. And at some point, if the person wants to sell the item, they will need to lower the price.
The flip-side is when you’re listing a popular item, you may encounter buyers who thrive on the hunt for the deepest discount they can get. Or you might get other cheapies that just don’t want to spend a dime. And for whatever reason, they approach you for bargain basement prices.
This seller @jennasch80 confirms they are firm on price of item AND shipping.
In general, some are resellers trying to buy things on the cheap, and then there are real buyers just trying to get something they like at a good price.
As a seller, adding “firm price” to your listing helps you save time fielding low-ball offers that aren’t worth your time. And you can also use it if you’d rather to keep the item rather than let it go at a price lower than you’re asking.
What is the Difference Between Firm Price and Fixed Price?
You’ll see both of these terms whether you’re a buyer or reseller, so you’ll need to know what they mean. You already know what a firm price means, but what about a fixed price?
Fixed Price
A fixed price refers to a price that the buyer will pay regardless of any costs the seller incurs. It is non-negotiable. This is where the firm-fixed-price contract comes into play.
With this contract, the buyer or customer purchases a service or product from the seller or contractor. The buyer pays this amount no matter what it costs the contractor to deliver the services or products. They can’t tag on extra costs to the final price.
No matter how long it takes for the seller to finish the job or deliver the product, the customer still just pays the agreed-upon price. Even if the contractor gets less profit or takes a loss in the end. If they finish quicker, they make more money, if it takes longer, they get less profit.
An example of this type of contract would be one between a freelancer and a client where the client just pays the fixed price.
So, “fixed price” and “firm price” are actually very different and shouldn’t be used interchangeably.
Final Thoughts on Firm on Price Meaning
Now you know whether you should make lower offers on firm price listings and whether you should list your items at a firm price as a reseller.
Some sellers use “price firm” when the cost is low.
Don’t be afraid to make an offer as a buyer. But I would still wait before making a deep-discount offer. You may choose to avoid shopping these listings altogether unless it is an item you are really interested in.
And as a seller, listing your items at a firm price can help you avoid rude low-ball offers.
You also learned not to use the terms firm price and fixed price interchangeably as they do not mean the same thing.
The nice thing is that as the owner of a shop, closet or store, you can do whatever you want!
Do you want to get started on Poshmark? Sign up with code THRIFTYIQ and get $10 toward your first purchase!
Hi and welcome to the new hangout for online reselling for beginners! I’m Q., the creator of the online reselling brand “thriftyIQ” on eBay, Poshmark, Mercari and Amazon. I currently sell fashion, shoes, accessories, jewelry, toys, home goods, a few electronics and some collectibles. I LOVE to shop (yay for thrift and consignment shops!).
And I REALLY love the idea of a circular economy (hence, the circular themes in my brand logos) – which is all about reusing, refurbishing and recycling products as long as possible to limit consumer waste.
Blog posts may contain affiliate links, and creates no additional cost for you.
My Background
So, just how did I get into this business? I’ve been reselling full-time since 2020. Before this, I spent nearly two decades in journalism in local newsrooms across the country. I still do some consulting and coaching in digital media strategy, but chose to really lean in to online reselling when I saw that I was able to make a profit (not just revenue!) from my shopping hobby.
Plus, thrifting and retail arbitrage allow me to spend much more family time with my husband and adorable 2-year-old daughter!
I’ve expanded my business to selling on eBay, Mercari, Poshmark, Amazon, Etsy and even a short stint on Depop. And I’ve invested half of my 2021 profits, so far, in testing new inventory sources, purchasing automation software to make by business more efficient, as well as upskilling myself to scale my business (I’m a HUGE FAN of ongoing education in any field!).
My Credentials
We all know the adage, “Buy low, sell high.” Generally speaking, that’s pretty to the point for our business and nearly anyone can buy a product for Price A, and then sell it for a higher Price B.
BUT there’s A LOT of work behind the scenes to source enough of the right products to actually make a profit aaaand make that money worth your time.
Who I am NOT:
I am not a reseller “guru.”
I am not a professional YouTuber.
I am not awash in hundreds of thousands in profit (yet).
And while I have made some rookie reseller mistakes (see my blog intro below), I also have created a great community of buyers who love my products, and – more importantly – my customer service. PERFECT 5-STAR RATINGSon eBay, Poshmark and Mercari are proof that I am a legit and committed reseller who cares about my customers.
It’s been nearly two years, and I’ve already run into some pretty memorable – and educational – rookie mistakes.
“What kind of mistakes?” you may be thinking. Well, having a $300 jacket returned because I saw the wrong color; selling a $60 untested sewing machine that didn’t quite work right; or buying pricey new sneakers only to discover a major value drop by the time they were delivered to me.
Beyond that, from the very beginning I’ve had (and still do sometimes) what I consider pretty basic questions that I struggled to find useful answers to. “Just go to YouTube” or “Search Facebook” wasn’t very helpful advice. Though they are excellent resources, how do you know who to trust? And who has time to plough through hours upon hours of video or FB posts?
Well…welcome to Rookie Reseller – the place where we can chat about all the ups and downs of reselling for beginners and how to avoid major pitfalls in the future.
I truly believe that sharing is the tide that lifts all business-minded boats, so let’s grab a cocktail (or coffee, sweet tea, or beverage of your choice) and figure this reselling roller coaster out together. Welcome to the crew…I can’t wait to get to know you!
DISCOVER