Turn Your Overflowing Closet into Profit
Is your closet stuffed with clothes you never wear? Do you struggle to find an outfit in the morning?
The answers to these questions are probably yes, especially after holidays or a spectacular shopping spree. Even if you have too many clothes, the thought of trashing them probably makes you cringe. After all, clothes are expensive, and throwing them away is a waste of good money.
Luckily, there is a way for you to clean out your closet without wasting your hard-earned cash. Selling your used clothes is a great form of side income that requires a small amount of effort to set up. With the vast amount of resale apps available, you should be able to start your business within a week. Read on to find out how to start a shop out of your own closet.
Choosing a Storefront
Selecting the app or website to host your store depends on your preferences. With the sheer amount of services available, finding a service perfect for your needs should be a breeze. Here are three of the most popular apps and a description of their pros and cons.
- ThredUp is a large online consignment shop, which means that you can get a small amount of cash for your unwanted clothes. This service is extremely easy since you can just pack your items into one bag, send it to ThredUp, and get your money. There is almost no work on your end. However, if you want a large percentage of the profit made off of your clothes, ThredUp is not a great option for you.
- Poshmark is an application where sellers list their clothes, shoes, and household items, price them and list them for buyers to view. With Poshmark, you get far more control with your products and your pricing. On the other hand, more responsibility falls to you to package the item, ship it, and take care of your finances.
- eBay is one of the most popular marketplaces on the Internet, so you’re sure to find a large consumer base when you post on eBay. eBay offers the largest amount of control over your storefront, and will likely take the most time out of the three options listed here. In addition, eBay works off of a bidding system, so your clothing may sell for lower than you listed it.
If you really want to run a professional business out of your own closet, you should consider sprucing your packaging up. Beautiful packaging can often change our perception of the clothing inside the box, making a consumer more likely to revisit your store. If you choose a storefront that allows you to list and sell your own products, like eBay or Poshmark, try ordering some custom packaging to dress your items up.
The packaging doesn’t have to be expensive, either. With a labeling service like Deepking, for example, you can order a round of labels for .05 cents a pop, which you can then use to dress up any cheap cardboard box. You can find more info about packaging services on the web, so be sure to find the service that works best for you. This small touch will make your customer trust you, and maybe even revisit you for another purchase.
Finally, let’s talk numbers. After all, running a shop out of your closet is about the money, so ensuring that you’re making a profit is key.
To effectively account for a small side income source like this, you can run a google sheet with a list of expenses and income on either side. You can list your item, and mark whether it is an expense or income. In addition, you can factor in the storefront commission as an expense. Then, you simply subtract your expenses from your income for a net total. If you do this for each month, you’ll have a clear view of how much you’re making on your side gig.
The original cost of the item is not important to list. This is what is known as a “sunk cost,” meaning that you will never get it back, so factoring it into any calculations will produce skewed results.
With these tips, you should have an easy time turning your unworn clothes into a simple, profitable side income.