It can be difficult to decide which reselling platforms are best for you and your business. Over the years, I have dabbled with many reselling platforms and know how challenging it can be to decide which ones are worth your time and energy. Today, I thought that I would share with you the pros and cons of each of the 4 reselling platforms that I use on a daily basis. These platforms have shown me the best return on my investment in both time and money. As a result, I would consider learning more about each of these platforms and incorporating some (or all) of them into your reselling business model.
Poshmark
I figured that the best way to start this is with the reselling platform that has given me the most success in my 8 years of reselling, Poshmark. Poshmark is a reselling platform that has grown in popularity in recent years and is a platform that many resellers and consumers utilize on a regular basis. Poshmark is a reselling app and website that allows its’ users to buy and sell items in an online marketplace. This platform is great for newer resellers as it is free and easy to navigate.
User Involvement Rate: High! This platform requires its’ users to participate in many social components. These components consist of sharing items, following other users, and actively interacting with other accounts. In order to make a sale on this app, you have to share your items multiple times throughout the day.
Commission Rate: Poshmark takes 20% of the item’s selling price (if the item is $15 or more), leaving the seller 80% of the selling price for themselves. Once paid out, this money can be direct deposited to a bank account or sent in a paper check by mail.
Selling Items: In order to sell items on the app, it is the buyer’s responsibility to source, photograph, and list their own items which can be time consuming. After the items have been listed, it is the buyer’s responsibility to actively share their listings within in the app.
Returns and Cancellations: When it comes to returns, Poshmark has specific criteria that needs to be met in order for a return to occur. To initiate the return process, a buyer must fill out a form via Poshmark. The buyer can provide photos and additional information in regards to the item. Poshmark and the seller can review the information but at the end of the day, Poshmark will be the one to make the decision in regards to the return. [Note: Poshmark tends to protect and side with the seller.]
To cancel an item, there are 2 ways to go about it. When someone buys an item, they have a small window where they can cancel a purchase if needed. After that window expires, the cancellation is up to the seller’s discretion. Also, if a seller does not send out an order within 7 days, the buyer has the option to cancel the order due to delayed shipping.
Mercari
The next platform that I would like to talk about is Mercari. I have been using the Mercari app since January of 2019 and really enjoy selling on that app. It is very similar to Poshmark but has some slight differences. The audience that uses Mercari is slightly different than Poshmark and as a result, I am able to sell different items across both platforms.
User Involvement Rate: Medium! Mercari is a much easier app to navigate than Poshmark. It does not have a social component so you don’t need to be extremely active on the app to make sales. [Note: Adding new items to your shop everyday does help significantly in making daily sales.] They do encourage you to participate in price drops and send out offers like on Poshmark but these activities are not mandatory for making sales.
Commission Rate: Mercari takes out a flat rate of 10% for each sale which is much lower than Poshmark. However, I’ve learned that you can make more sales on the app if you provide the buyer with free shipping. So at the end of the day, it does end up equaling more like Poshmark’s 20% commission rate.
Selling Items: In order to sell items on the app, it is the buyer’s responsibility to source, photograph, and list their own items. Once the items are listed, you don’t have to do anything else other than ship an item once it sells.
Returns and Cancellations: This process is handled very differently than on Poshmark. On Mercari, buyers and sellers can cancel orders and return items much more freely. A seller can cancel an order at any time and a buyer can cancel an order if tracking hasn’t updated after 7 days from purchase. To initiate a return, there doesn’t have to be a reason in order for someone to return an item. This free-flowing process is great for buyers but can be a nightmare for sellers as some buyers may try to scam sellers.
The RealReal
The RealReal is a very different platform from the two that we covered above. The RealReal is a platform that only sellers high end designer items. Additionally, this platform is an online consignment service where sellers send the items into the RealReal and the platform does all of the behind-the-scenes work. Sounds pretty great, right?!
User Involvement Rate: Low! All a user has to do is source the items and send them in. The RealReal does the rest!
Commission Rate: This is a little hard to explain but I will try my best. The RealReal’s commission system is based off of 2 tiered systems. One system is based off of the value of the item while the second system is based off of where you fall in the membership tier. The more items that you sell on the app, the more commission that you will receive (especially on higher priced items). Commission that a seller receives ranges from 40-70% depending on the item and the member’s placement on the tier system. Your earnings are paid out to you via direct deposit or paper check by mail.
Selling Items: In order to sell items on the app, all you have to do is source the item and send it into the RealReal. The RealReal will then photogram, list, and ship the item for you.
Returns and Cancellations: Returns and cancellations can occur within a selected time frame on the app. However, as a seller, there is nothing additionally that you have to do. The RealReal will handle the return for you. Once the item has been returned, your commission will be deducted from your earnings and the item will be re-listed to the platform.
ThredUP
ThredUP is probably every resellers least favorite platform right now. ThredUP is very similar to The RealReal in that it is an online consignment website where you send in your items and they handle the rest. However, ThredUP is different than the RealReal in that they will try to take more money away from sellers through hidden fees so beware.
User Involvement Rate: Medium! All a user has to do is source the items and send them in. ThredUP will photograph and list the items for you. Once the items have been drafted on the site, it is the buyer’s responsibility to go in and adjust pricing for their items.
Commission Rate: This varies as it is calculated per each item’s cost. It works on a tier system similar to the RealReal where the higher the sale, the higher the commission that you make as a seller. In order to make this app worth it, you either need to have a low cost of goods or sell items that will sell for over $100.
Selling Items: In order to sell items on the app, all you have to do is source the item and send it into ThredUP. ThredUP will then photogram, list, and ship the item for you. [A Quick Note: ThredUP is having a very difficult time processing boxes amongst COVID-19 and is known to place holds on their services. Please be aware of that!]
Returns and Cancellations: Just like the RealReal, returns and cancellations are handled within the app. As with any other platform, the buyer has a specific time frame in which they are able to return an item. If the item is returned, then it is re-listed to the app until the consignment period ends. [Fun Fact: All purses and handbags are final sale so they are a great category to send to ThredUp.]
I hope that you found this post helpful and if you have any questions at all, please feel free to reach out as I am more than willing to help!
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