You’ve probably either had a yard sale or know someone who’s had a yard sale. What is the biggest seller at these yard sales? Clothes. People love buying clothes, and they love it regardless of the age of the clothes being bought. But what if you could turn other people’s love of buying clothes into a source of income? This is where reselling comes into play.
What Is Reselling Clothes Business All About?
Reselling clothes is simple: resell your clothes. Or, alternatively, you can buy clothes at a discount and sell them at the retail price online. Reselling anything, especially clothes, is easier than ever thanks to websites like ETSY and eBay. If you go to eBay and search for clothes, you’ll see plenty of resellers making a profit off of either their old clothes or clothes they’ve purchased at a low price and resold them.
Who Is Reselling Clothes Business Suited For?
Reselling clothes is entrepreneurship, and entrepreneurship takes a certain type of person. You have to be self-motivating, disciplined, and able to handle spur-of-the-moment decision-making. Since you’re presumably going into this venture solo, you’ll also have to have at least minimal customer service experience. If you’re reselling clothes over the internet, the third-party websites that you use to list your clothes aren’t going to go out of their way to make sure your customers are happy.
You also have to have the personality for this kind of work. You should always think positively and should refrain from letting yourself get demotivated when things don’t go your way. Always take responsibility for bad things that happen, and then proceed to fix those bad things. You don’t want to be the kind of person that gets discouraged easily.
How Much Time and Money Does It Cost To Get Started Reselling Clothes Business?
Like with any self-starting business, this will take time. Luckily, it’s not going to take as much time starting out as other ventures would. This is something that you can do in your downtime, and it should only take 2 or 3 hours a week at first. If your business starts to take off, you can expect the time needed to maintain it to increase so you can maintain your operation.
What about the starter costs? You could start off by reselling your old clothes, and that should save you some money. But you’re still going to need shipping boxes, and you’ll also need to pay the upfront cost of shipping. Don’t worry, you’ll be able to charge your customers for shipping on whatever website you’ve decided to sell your clothes on. All-in-all, you should expect to pay about $50 for things necessary to get started.
Business Model of Reselling Clothes
Customer Segments: Who Is The Target Audience?
Women between the ages of 18 and 40. You can try to market to men, but they’re far less likely to be interested in actively shopping for clothes.
Value Proposition: What Customers Are Willing To Pay For?
There are plenty of resellers on the market, so you really want to stand out. If you can’t compete on a financial level, be sure to put emphasis on your customer service and reliability. Make it so that your brand of reselling is synonymous with excellent customer service. Other brands don’t put a lot of emphasis on making sure their customers are truly happy, but not you.
You should make sure every article of clothing is properly inspected before shipping out, and you should stay on top of every package that you send out. Customers are willing to pay for peace of mind, and if you can offer them that, you’re already winning.
Channels: What Channels Should You Use To Provide or Inform Prospects About The Value Proposition?
Facebook, Twitter, Instagram, Snapchat… if there’s a popular social media app, you should be using it to advertise your value proposition. Naturally, you should also drive the point home on whatever platform you’re using to resell your clothes. For example: if you’re using eBay, be sure to write a short, to-the-point bio on your profile so people know what you’re all about.
Customer Relationships: How Much Effort Should One Make To Serve Customers The Value (From Personal to Automated)?
When you’re first starting out, you want to develop brand loyalty among your customers. Fortunately, you’ll be able to focus on only a few customers at a time at first. As you grow, you’ll have to be able to decide which customers are worth spending time on, and which ones can be ignored because they’re being a pain.
If you get to the point where you can automate the selling process, it’s suggested that you get some sort of call center that can take complaints or questions from your customers. You won’t be able to personally get involved with every customer that has a problem, but you can take time out of your life to hire contractors that have the same pleasant attitude you do.
Partners: partnership with whom might leverage a value proposition or is a must-have to operate?
When you’re up and running, it might be beneficial to forge a partnership with a clothes seller or wholesaler. Sometimes they can get rid of a certain item and will sell it to you at a discount. This can be mutually beneficial: You get a steady supply of clothes, and the clothes outlet gets paid for clothes they would have otherwise been unable to sell.
You could also partner up with personal shoppers whom you could help find garments for their clients.
Key activities: what one must do regularly to provide or increase value proposition?
First of all, you need to find good garments to sell. Then you need to focus on customer service, product inspection, and ensuring that packages are properly packed every time. Presentation is a big part of increasing value proposition.
Key resources: what are assets that build the value proposition or allow the business to work?
As previously mentioned, the most important asset to have when building your value proposition from the ground up is outdoing your competitors in areas where they’re lacking; customer service. When you’re a fledgling business, you need more creativity to increase your value proposition. When you grow, you can start focusing on other areas such as website presentation or better selling, rarer products.
Revenue streams: one-time payments, subscriptions, commissions?
When reselling, one-time payments are the way to go. Commissions are entirely optional if you feel up to the task of trying to find rarer articles of clothing for prospective customers.
Cost structure: what are the major (regular and irregular) costs one must consider?
You need to have clothes to resell them, so you need to either sell your own clothes or buy them. This is gonna be the biggest cost of the reselling clothes business.
Selling clothes with a help of online auction platforms usually costs some money to put up an ad or a listing. You could search for newly created platforms that usually offer free-of-charge listings.
You must consider the costs of missing packages. Always keep the money from the sale on standby until your customer receives the product they paid for. You may also have to pay for damages that a shipping company may have done to the product you sent out.
If you grow to such a size that you can hire employees, you will have to keep in mind payroll tax, salaries, and other reoccurring costs related to employees.
You should also consider the shipping costs of every item you send out. Boots are heavier than shirts, so they cost more to ship.
You should also keep in mind the cost it takes to maintain a workstation (desk, computer, fax machine, etc. etc.).