Earning extra income on the side by working odd jobs or freelancing is now mainstream, thanks to the modern gig…
Earning extra income on the side by working odd jobs or freelancing is now mainstream, thanks to the modern gig economy.
Approximately 34% of Americans had a side hustle in early 2021 and another 24% were planning to start one during the upcoming year, according to a survey by automation platform Zapier. For workers who departed from offices in droves during the Great Resignation, side hustles are one avenue to fill financial gaps.
However, a side hustle doesn’t necessarily have to involve delivering takeout or giving rides. It could be selling thrift store finds online. Today’s online consignment and resale shops make it easy for people to clear out closets and make some money while they do it.
“Many of these online resale or buyback clothing shops are built on a win-win for the business and customers alike,” says Carlos Castelán, founder and managing director of The Navio Group, a retail management consulting firm.
Through the resale model, businesses receive an inventory, customers get a deal and resellers may earn more money than they could through other options such as garage sales. What’s more, online consignment shops may help keep items out of landfills. “This circular economy of clothing goods is a step toward larger sustainability initiatives while being good for the bottom line,” Castelán says.
Here are some top online consignment shops and resale stores for selling clothes online:
— The RealReal.
— Vestiaire Collective.
If you want to cash in on this trend, read on to learn more about some of the best websites to sell clothes.
Best for: Formalwear such as evening dresses, prom dresses, cocktail dresses, bridesmaid dresses and glam jumpsuits.
Founded in 2019, Queenly was developed as a way to buy and sell formalwear of all sizes and at all price points. CEO and co-founder Trisha Bantigue competed in pageants for scholarships and noticed a common theme. “I saw that women were having a hard time finding and affording their evening gown,” she says. “So the idea for Queenly was really born out of necessity and a gap in the market for affordable formalwear.”
Today, the website serves as both a platform for small businesses to sell their inventory as well as a marketplace for individuals to sell previously used formalwear. Dresses selling for less than $500 are sent directly to buyers while those costing more than $500 go to Queenly for a quality check first.
Items can be listed for sale using the Queenly app, and the site provides a prepaid label for shipping. When an item sells, the site takes a 20% commission. Buyers have three days to accept an item, and seller earnings are distributed within three days of delivery or acceptance. Payment can be received via PayPal, Venmo, CashApp or Zelle.
Best for: Luxury goods. The RealReal is one of the top online consignment shops for brands like Burberry, Chanel and Hermès.
At The RealReal, sellers can request a shipping package with prepaid postage to mail their clothes. In some areas of the country, The RealReal also offers in-home pickup of goods for consignment or operates consignment offices where people can bring items to be valued.
Sellers get paid on a sliding scale. Those with sales of less than $1,500 will get a 55% commission, while items with an original resale list price below $195 may bring in less. Top consignors receive a 70% commission if their annual sales exceed $10,000. There are also special commission rates for specific items. For instance, watches with a resale list price of $2,495 or more are entitled to the largest commission on the site: 85%.
Certain items, such as some handbags, watches and men’s sneakers, are eligible for Get Paid Now. This feature provides an upfront payment rather than a consignment commission. Consignment items are subject to pricing by The RealReal, which states its goal is to sell items within 30 days. Payment is made via direct deposit.
Best for: Women’s and men’s clothing, as well as bags and jewelry, from luxury brands such as Coach, Prada and Versace. High-end vintage items and some lifestyle goods are also accepted here.
Focusing solely on high-end brands, Vestiaire Collective is making a name for itself as a site for pre-owned luxury goods. The website caters to a global audience and operates on a system of peer-to-peer sales but also offers an authentication service should a buyer have concerns about an item they receive.
Sellers send photos and descriptions of their items to the site for review. If approved, Vestiaire Collective lists them, and sellers hold on to the clothes until they are sold. Once a sale is made, the consignor is provided a prepaid label to send the item directly to the buyer. If a buyer has doubts about the authenticity of their purchase, it is then sent to Vestiare Collective to be checked by a quality control team.
The site collects a flat fee based on an item’s price. Site commissions are $10 for items priced below $80 and $2,000 for items sold for more than $16,500. Sales for items priced between $80 and $16,500 are subject to a 12% commission. There is also a payment processing fee of 3% for all items except those priced at less than $80 — that processing fee is just $2.
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Best for: Women’s, men’s and kids’ clothing and accessories in a wide variety of brand names such as Forever 21, Under Armour and Old Navy as well as some designer labels.
Poshmark isn’t a traditional consignment shop because sellers must manage their own listings. Sellers take photos, upload descriptions and determine their own price. The company has a user-friendly mobile app and an active marketplace that seems to attract millennial and Gen Z shoppers.
“Generally, Poshmark is best for making a bit of side money selling new or gently used, mid-range name-brand items,” says Shannon Vissers, retail analyst for Merchant Maverick. “You do have to list and ship each item yourself, but Poshmark makes both of these tasks super easy.”
For items with a sale price lower than $15, Poshmark charges a flat fee of $2.95. More expensive items are subject to a 20% commission. When an item sells on Poshmark, the company provides a prepaid shipping label that sellers use to mail the purchase directly to the buyer. Items with a value of $500 or more are eligible for free authentication through the Posh Authenticate feature.
Best for: Affordable baby, kids’ and women’s clothing in brands such as Gymboree, Gap and Matilda Jane.
Kidizen is a popular place to buy and sell kids’ clothing. The company, which has a website and an app, isn’t an online consignment shop in the traditional sense. Rather than sending items to Kidizen, sellers set up a virtual shop, snap and upload photos of their clothes and manage their own prices.
When an item sells, Kidizen provides a shipping label to send the goods. The service charges a marketplace fee of 12% plus 50 cents for each transaction. Sellers are responsible for covering the shipping cost.
Sellers can use Kidizen’s extensive seller’s guide for tips and tricks to improve sales. Or if you don’t have time to list your own clothes, you can work with one of the site’s Style Scouts. Although not available in all areas, scouts will make house visits, evaluate available items and sell them. Profits are then split between the scout and seller.
Best for: Women’s, kids’ and maternity wear in a wide range of value, mall and premium brands, including J. Crew, Motherhood and Carter’s. Also accepts shoes, handbags and designer items.
While other consignment shops focus solely on luxury brands, ThredUp makes online clothing sales accessible to the average person. The downside is that there is relatively little profit to be made compared to higher-end stores. “ThredUp takes a fee that’s between 20% to 95% of what an item sells for,” Vissers says. “So, if you sell an item for $10 or less, you can probably expect to make less than a dollar on that sale.”
Sellers can request a clean-out kit to send in their clothing, shoes and handbags for consideration. The postage is prepaid by the company. ThredUp uses an algorithm that looks at the brand, style, season and current inventory to price items. Sellers have a 12-hour editing window to adjust the listing price, though. Payouts range anywhere from 5% to 15% of the sale price for items listed from $5 to $19.99 and up to 80% of the price of goods listed for $200 or more.
Items that are not accepted or that do not sell are recycled. Sellers can also ask for their clothing to be returned, but they must pay a fee to do so. “ThredUp is best for making a bit of money on a bag of clothing and shoes you were probably going to donate to Goodwill anyway,” according to Vissers.
Best for: Diamonds and high-end jewelry as well as luxury watches in brands such as Rolex, Tag Heuer and Cartier.
For high-end jewelry and watches, try selling on Worthy. Rather than selling items to consumers, Worthy auctions off fine jewelry to more than 1,000 professional, vetted jewelry buyers.
Potential sellers start by describing their jewelry to see if it meets the site’s criteria, and a prepaid label for insured shipping is provided once an item is accepted. A third-party authenticator does an independent review of the item’s quality upon receipt by Worthy. Jewelry is then auctioned with a reserve price of the seller’s choosing. If an auction ends below the reserve price, the seller can accept the lower price or have their item returned. Worthy pays the return shipping for any unsold good.
The sale process generally takes about 10 to 14 days, and Worthy doesn’t charge a fee unless a sale is made. Then, it collects a commission that ranges from 18% on items up to $5,000, to 10% for those selling for $30,001 or more.
If you have a closet full of items you no longer wear, now may be the time to reevaluate your wardrobe. Don’t let your clothes and accessories gather dust when you could be selling them for cash on one of these top online consignment shops.
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Top Online Consignment Shops for Selling Your Clothes originally appeared on usnews.com