Buying holiday gifts can be challenging if you don’t have the extra cash. You may want to consider thrifting as a side hustle. You can work at your own pace, recirculate items, and earn money.
Good Things Come to Those Who Thrift!
“Reselling or thrifting contributes to a circular economy and puts money in my pocket,” says Rachel Munger, PR Manager at Coulee Bank. She started thrifting with her sister in 2018. This was a natural move into a side hustle for Munger as she loves to shop. Although, thrifting in her mind has several benefits. She shops for designer clothing and wears it until it no longer serves her. Then, she recirculates the piece and resells it for a profit. She says she is usually money ahead by reselling designer goods.
While the extra cash helps, she feels like she is doing her part to help the environment too. Secondhand stores can’t keep up with the volumes of donations they receive each year. She says roughly 700,000 tons of used clothing donations are being shipped overseas each year where it is sold again or ends up in an overseas landfill.
Start Your Thriftventure?
Munger says to find professional resellers on TikTok or Instagram. If you hear them talk about BOLOs or “be on the lookout” items, you’ll want to shop for those pieces. “My strategy is to hit the secondhand stores and feel the garments. You can typically tell when something is more expensive based on how it feels. Look for quality fiber contents, like silk, linen, or wool,” she says.
If you find a garment that feels luxurious, look up the brand and style on Poshmark or eBay and do a price comparison. Using these sites allows you to see how much a similar item has sold for or if the market is oversaturated with those pieces.
Munger says, “To earn the biggest return, sell your goods on Poshmark and eBay even though they take 6-15% of your sales. These sites have the largest audience and items sell faster and usually at a higher price than Facebook Marketplace.” She goes on to say that on ThredUP, she hasn’t received as good of a return on her sales.
Poshmark Pricing!
Do your homework. It’s important to determine the value of an item by comparing it to similar items. This is known as comps or a comparable. You can use apps like Google Lens or Poshmark. Take a photo of the item using Google Lens. This app completes a reverse search of the item and provides the style name. Go to Poshmark and search for the brand and style name. Munger says you can filter the search and see what it sold for. Price your item similar to the most recent sale.
If you find a great piece, you may want to take the risk and pay a little more for it. Munger says, “Recently, when I was in Rochester, MN, I paid $40 for a pair of designer boots, which is more than I would typically pay for an item; however, I knew they retailed close to $900, and on the secondhand market I could make between $150-$300 selling them. I ended up selling them in less than a week for $200, so even though I paid more than I usually would, I netted a large profit fast, so it was worth it!”
There’s Always Time to Thrift!
For Munger thrifting is fun, so it doesn’t feel like she spends a lot of time working on her side hustle. The beauty of thrifting is you can shop at your own pace and sell at your own pace. She considers it a treasure hunt, especially when she sources items through Goodwill bins. If you shop the bins, you buy products by the pound and pay between $1-$3 per pound. Remember it’s not all shopping and fun though. “Everything you buy needs to be photographed, stored, and eventually shipped, so there are administrative tasks as well,” she says.
You also need to be aware of tax implications. While Munger is not a tax professional, she says you do need to set aside at least 30% of your sales for tax season. But, keep in mind, you can deduct your business expenses. Contact a tax professional for more information on starting a side hustle.
If you enjoy shopping, thrifting may be a great side hustle for you especially if you have an eye for quality fashion items and recognize designer names. You not only put money in your pocket, but you can also be environmentally conscious.