As a full-time reseller, I am always looking to discover new ways to utilize different reselling platforms in my business model. One platform that I have been experimenting with over the past few years is ThredUp. ThredUp is a reselling platform that utilizes a consignment style model where all the seller has to do is send their items to the company and then let them handle everything from there. It is a very easy platform to use as it is very user friendly and has great customer service. Today, I wanted to share with you how I am utilizing ThredUp in my reselling business to both liquidate older items and make passive income when sourcing newer items.
How I Utilize ThredUp in My Reselling Business
Many resellers who utilize ThredUp will often discuss how they do not have “good payouts.” Although that may appear to be true at first glance, that is not always the case. With any reselling platform, it is always important to familiarize yourself with their payout structure.
To learn ThredUp’s payout structure, please visit THIS link.
Once you become familiar with ThredUp’s payout structure, it is a lot easier to strategize how you can use this structure to benefit your own business. Personally, I have found that the best way for me to utilize ThredUp for my business is through liquidation and by sourcing certain luxury and contemporary items to obtain a passive income.
Liquidation on ThredUp
I have predominantly used ThredUp over the past year or so to liquidate older inventory. Unfortunately, I have some items that have been sitting dormant within my reselling business for over a year. In order to give myself additional capital to buy new items that will have a greater likelihood of selling, I have to liquidate these items. After doing some quick math, I discovered that by sending my items into ThredUp, I am able to either break even with my items or potentially make a small profit. All I have to do is pull the items from my inventory, remove all active listings, and then send them off in a large box to ThredUp. As someone who values their time, I have found that this is such a quick and efficient way for me to liquidate and recoup my money.
Sourcing and Obtaining Passive Income on ThredUp
This method of using ThredUp is a little bit newer to me as I have only been experimenting with it for a few short months. A few years ago, I used to send in items to ThredUp for profit after learning about it from other resellers on social media. Unfortunately, back then, I was unable to strike the correct balance between my cost of goods and profits so I discontinued using the platform in that way. As some time has passed and the economy has changed, I learned that if I changed my strategy a bit, I could utilize ThredUp to make a passive income that was comparable to the sales I was making on my main reselling accounts.
To do this, I started off by sending in a few higher end pieces with my liquidation boxes to gauge how much they would price the items for and what my payout would be. I learned rather quickly that certain brands, styles, and categories were getting priced by ThredUp for much higher than the standard brands that I was sending in.
Here are some of the items that I experimented with when sending in my liquidation boxes:
After doing some additional research on the ThredUp app, I decided that it was time for me to try and send in a box of items that I sourced specifically for ThredUp with the intention of making a larger profit. The items that I sent to ThredUp in this box were items that I had sitting in my Poshmark and Mercari accounts for months without any interest. My thought was that if the numbers looked good, I could send them to ThredUp and hopefully make enough of a profit that it would be comparable to my Poshmark sales. Once all of the items were processed by ThredUp, I was pleasantly surprised to see that almost all of the items were accepted and that they priced the items fairly. If there was an item that I believed should be priced higher, I could manually adjust it.
As of today, I can say without a doubt that this box has been successful for me. Although not all of the items have sold, most of the items that have sold have given me solid profits. Over the past few month, I have learned what brands, styles, and categories of items perform the best and I will be continuing to send these items into ThredUp in the foreseeable future. It has proven to be a great strategy for passive income in my reselling business. My hope that over the next year or so, I can share with you what items have performed well for me so you can use that info to help you in your reselling business.
Below is my latest luxury box to ThredUp showcasing how much items were listed at/sold for and their respective payouts:
I hope that you find this post helpful! If you have any questions or just want to chat, please reach out!
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