Poshmark is an online resale marketplace and app designed to make selling clothes an approachable side-hustle.
Some entrepreneurs have turned their Poshmark shops into full-time businesses that earn six figures.
Business Insider spoke to two sellers, or “poshers,” who made six figures in annual sales.
They revealed how they scaled their businesses, in four stages, based on sales and followers.
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The next generation of entrepreneurs is looking to earn cash in the most resourceful ways possible, by using an app they can access on their phones to launch six-figure businesses.
YouTube stars, for example, can earn six figure paychecks by posting videos on their channels. Instagram influencers can make thousands of dollars by posting eye-catching photos on the app.
The average price brands pay Instagram influencers for sponsored posts surged to $1,642.77 in 2019, Business Insider previously reported. Prices for sponsored content on YouTube also picked up in 2019, after dipping the year before.
This trend is beginning to translate into retail, where resale is a growing market, especially among Gen Z and millennials. Recycling and reselling clothes allows shoppers to wear new-to-them outfits instead of repeating pieces they’ve already posted on social. People are keeping their clothes for half as long as they used to, according to a report by Business of Fashion.
A 2019 report by ThredUp projected the overall secondhand market will reach $51 billion by 2023, with resale making up $23 billion. The global sneaker resale market alone could be worth $6 billion by 2025.
That’s where the shopping and resale marketplace app, Poshmark, comes in. Scrolling through listings looks much like an Instagram feed, where shoppers can search for their favorite brands and make offers for better deals.
Vinted, TheRealReal, and ThredUp are just a few other popular apps in the resale space.
For sellers, it’s a tool to start a side hustle on a budget. Many start as college students and homemakers, and some are able to grow into a full-time business earning six figures or more in annual sales.
Poshmark cofounder, Tracy Sun, told Business Insider that a lot of sellers scale as they procure more inventory. “The path we often see people take is they start in resale and they learn how to use Poshmark, they build their audience, and then as they want to grow faster, they look to procure brand new inventory,” she said.
Business Insider spoke with two Poshmark sellers who turned their side hustles into successful full-time businesses. Shannon Welch made $127,000 in sales last year and Elaine Ratner has made $1 million in sales since starting her Poshmark shop and subsequent ecommerce site. Ratner declined to tell Business Insider annual revenue through Poshmark alone.
Here’s how they scaled their shops based on sales and followers.
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Source:: Business Insider