How do you make money reselling online?
There is a common motto when talking about making money in the stock market or real estate market and that is
Buy low, Sell high
The same can be said for making money reselling online. It all comes down to profit margin.
Our ideal profit margin is 1,000% profit on each and every item. For example, if I buy something for $1, then I expect to sell it for $10. If I buy something for $10, then I expect to sell it for $100.
When reselling, I recommend paying attention to an itemβs market value especially if it is used. Some brands hold their value well and other brands do not.
Example: J.CREW is an exceptional brand by way of style and quality but their resale value has tanked. Most of their dresses will resell for $14-$20, and while that isnβt necessarily a low price, it is rare that you will find a used J.CREW dress for less than $7. If I buy any dress for $7 then I expect to resell it for $70, therefore making J.CREW a wonderful brand to thrift for yourself but not to resell.
Search eBay for J.CREW dress and you will notice there are 50,000+ active listings. That my friend is a saturated market.
If you filter the results for βUsedβ condition and βSoldβ then you will see that most of their dresses sell for $10-$20. There will be outliers but most of the time, you are looking at a small return on your investment.
Returning to our motto of 1,000%, I allow this to be our guiding star when identifying clothes to sell online.
When reselling home goods, you can find plenty of everyday items but keep your eye out for unique brass pieces, collectible china, tote bags, sporting equipment, and the like. Most home good items are priced fairly at thrift stores. Keep in mind that yard sales are a great avenue for sourcing these kinds of things at rock bottom prices.
Reselling Fees
Each platform will have varied policies regarding fees collected on items listed and sold through their website. It is best not to get hung up on these fees but just come to expect that 15% of sales price will be allocated to reselling fees.
Rarely is this an issue if you stick with the motto of 1,000% profit.
Head out thrifting this week to your local secondhand store, antique mall, estate sale, or yard sales and keep your eyes peeled for unique items and high-value brand names. Donβt expect to find a carload full, but 5 - 10 items is a great week in my opinion. :)
Happy Reselling!
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