How This 23-Yr-Previous Began A Facet Hustle That Now Earns Her 124K/Yr
Who would have thought you may earn over 6-figures reselling gadgets on-line?
Effectively, we talked with Sophie Riegel and he or she tells us precisely how she earned 124K final yr reselling gadgets.
Sophie shares what platforms she makes use of to promote, what gadgets she makes probably the most revenue from, and a lot extra!
OK, right here you go…every part it’s essential learn about beginning your on-line resale enterprise.
1. Are you able to inform us somewhat bit about your self and what impressed you to start out your online business?
I grew up in NY and went to varsity in NC at Duke. I graduated in Might 2023 with a level in Psychology. Along with being a reseller, I’m additionally an expert speaker, licensed coach, and creator.
I communicate all around the nation about my expertise with psychological sickness and have written three books associated to that subject. In 2022, I went to teaching faculty (each of my mother and father are coaches) as a result of I needed to assist mother and father navigate their relationship with their children. Now I work full time as each a coach, speaker, and a reseller.
How did I grow to be a reseller?
Throughout my freshman yr of faculty, we had been all despatched dwelling due to COVID and instructed to proceed all of our lessons asynchronously. Once I was at dwelling, it felt like there was nothing to do and my mother and father instructed me and my twin brother that we would have liked to discover a passion.
That’s once I began going by means of my closet and promoting these gadgets on platforms like Mercari and Poshmark. I had nothing however time to determine the ins and outs of reselling clothes and I shortly realized how worthwhile this could possibly be.
In November of 2020, I started going to thrift shops to seek out gadgets to promote on the platforms I realized a lot about. From that time on, I knew I needed to know every part there was to learn about reselling and my enterprise took off from there.
2. May you element the steps concerned within the launch of your online business?
These had been a number of the steps concerned in launching my enterprise:
- Discover locations to supply gadgets
- Get all needed transport provides
- Get a storage unit for my stock
- Develop into conversant in the reselling platforms
- File for an LLC
- Analysis, analysis, analysis!
- And extra
3. What varieties of gadgets do you specialise in reselling? Is there a sort of merchandise that’s all the time in demand?
I specialise in promoting grownup sneakers, garments, and equipment. Athletic sneakers are all the time in demand since they’ve a excessive retail value and are utilized in each season.
Excessive-end/designer baggage and backpacks are additionally in demand all year long, particularly as a result of they don’t exit of favor as shortly as garments do.
Different gadgets like winter jackets, boots, sandals, swimwear, and so on. are way more seasonal gadgets and due to this fact promote nicely for only some months out of the yr.
4. Are you able to stroll us by means of your online business mannequin and your course of for on-line promoting?
I’m going to thrift shops, yard gross sales, and so on. and purchase undervalued gadgets and promote them on-line.
For instance, I’d stroll right into a thrift retailer and discover a pair of nike sneakers for $5 after which I’ll deliver them dwelling, clear them if wanted, and get them itemizing on the completely different reselling platforms.
Then I anticipate the merchandise to promote and ship it to the customer. I’ve over 1,300 gadgets in my stock proper now.
Primarily, these are the primary steps:
- Do tons of analysis to know what to search for
- Supply stock
- Clear stock (if needed)
- {Photograph} stock
- Edit images
- Retailer stock
- Listing stock (and do analysis on every merchandise to determine the value to listing it at)
- Promote stock
- Pack stock
- Ship stock
- Repeat
5. The place are the perfect locations to seek out your stock, and what methods do you utilize to make sure the standard of the gadgets you promote?
I discover good high quality stock at most thrift shops. Anytime I journey, I’m going to the native thrift shops and I discover nice gadgets. Whereas some areas I’ve been to have higher stock and costs than others, I feel wherever you might be, you could find high-quality gadgets.
Within the hotter months, I additionally go to flea markets and yard gross sales.
If you recognize what to search for and have a depth of information, you could find good stock virtually wherever.
I keep away from consignment shops as a result of the costs are too excessive for me to hit my desired revenue margin.
Earlier than buying any gadgets, I do a radical high quality management verify. For sneakers, I verify for put on on the soles, uppers, and the within (there may be typically put on behind the shoe by the heel). I additionally do the “bend take a look at” to be sure that if I bend the sneakers, they don’t collapse or crack.
On clothes, I search for stains, holes, and extreme put on. On baggage, I make sure that each the within and outdoors are clear and I verify all zippers to ensure they’re working correctly.
I do make errors generally, although. I’ve missed flaws in gadgets and located them as soon as I began my photographing course of. In that case, I’ll both re-donate them or promote them and be aware the flaw within the description.
6. Are you able to describe your course of for pricing your gadgets? What elements have an effect on the value?
Elements that have an effect on the value are merchandise situation, seasonal demand, competitors, sell-through price, and so on.
Once I discover an merchandise, I often use Google Lens to go looking my merchandise and discover different comparable listings on eBay, Poshmark, and Mercari. I can seek for my merchandise on these platforms and see what my precise merchandise has offered for previously.
Resellers name this course of “checking comps.” I’ll often value my merchandise a bit larger than what it has beforehand offered for to go away room for presents. If I’ve the one one among that particular merchandise listed, I’ll improve the value since there is no such thing as a competitors. If I need to make a faster sale, I’ll lower the value.
For instance, if I discover a coach purse, I’ll search for the model quantity that’s written on the within of the bag. As soon as I do this, I’ll discover the title of the model and kind it into eBay.
Then I’ll filter the listings on eBay to offered listings and see what it has offered for previously. If I see that it’s constantly promoting for round $40, I’d value is at $45 or $50 and take a suggestion from a purchaser. If I need to eliminate it shortly, I’d value it at $30.
Once I value my gadgets, there may be a whole lot of analysis concerned. I’m contemplating the situation of the merchandise, the availability and demand, the novelty, the scale, and way more.
7. How do you market and promote your on-line resale enterprise to draw clients and generate gross sales?
I don’t do any advertising. I simply make sure that I’ve prime quality and fascinating gadgets at a very good value and the purchasers come to me. I’ll sometimes run gross sales on the reselling platforms which does assist drive enterprise my approach.
8. What platforms or channels do you utilize for promoting clothes and different gadgets you promote?
I promote on Poshmark, eBay, and Mercari. I discover Poshmark to be probably the most user-friendly of the three platforms. Round 45% of my gross sales are on Poshmark, 30% on eBay, and 25% on Mercari.
9. How a lot do you earn with your online business?
Since I began reselling 3.5 years in the past, I’ve had about $350,000 in gross sales and round $205,000 in revenue after charges, value of products, and different bills. In 2023, I had a income of $124,000.
10. How do you deal with logistics and transport for gross sales?
On Poshmark, there’s a flat transport charge of $7.99 that my patrons pay. As soon as an merchandise sells, I obtain and print the transport label, pack up the merchandise, put the transport label on the bundle, and drop it on the publish workplace. I’m usually transport out between 60 and 90 packages per week and right here is my course of:
Two to a few occasions per week I’ll do that:
- Print transport labels from all platforms utilizing a thermal label printer
- Write the title of the merchandise on the again of the transport label
- Pull the gadgets from my stock
- Undergo the pile of transport labels and pack the merchandise that’s written on the again
- Put all of my packages in giant duffel baggage
- Convey them to the publish workplace and drop them off
Transport on eBay is extra difficult which is why I like to recommend utilizing Poshmark to start out.
11. What challenges have you ever encountered in operating your resale enterprise?
It’s exhausting to run any enterprise alone, particularly as a 20 one thing yr previous.
Listed here are a number of particular challenges I’ve encountered whereas operating my enterprise:
I like to do the procuring, however the different components of the method are much less gratifying. It has been a problem for me to get motivated to get the boring components of the method carried out (transport, photographing, cleansing, itemizing, and so on.).
However I’ve to do all of this stuff to maintain my enterprise operating and my clients glad. I additionally don’t have anybody to carry me accountable so it is rather simple to slide right into a sample of simply doing what’s gratifying and procrastinating the remaining. It’s a whole lot of work to do each step of the method, particularly when this isn’t my full-time job.
It is usually tough to say no to stock when it is rather low-cost. For instance, if I see one thing for a greenback and I do know I can promote it for $10, it may be exhausting to show it away. But when I’m going primarily based on that mannequin, I’ll have extra stuff than I can presumably cope with and I’d reasonably deal with larger revenue gadgets.
It is extremely simple to think about different resellers as competitors. Once I first began reselling, I undoubtedly had that mindset and would get aggressive and aggressive with the opposite resellers within the shops.
However there may be sufficient stuff for everybody and being mates with different resellers means you may collaborate, bounce concepts off of one another, commiserate, and extra. Now once I see different resellers, I remind myself that them doing their job doesn’t take something away from me.
The final problem that I’ve encountered most lately is that there are a whole lot of haters.
When the CNBC article about my reselling enterprise was revealed, I used to be flooded with messages of individuals telling me that I used to be stealing from the poor or that I’m what’s incorrect with American or that I made up my numbers to get publicity.
I even had individuals criticizing my seems or telling me that I in all probability made cash on OnlyFans and didn’t need to admit it. In every single place I look, there may be somebody telling me that I’m a nasty particular person for operating this enterprise, that I clearly don’t care about underprivileged individuals, or that I’m dumb for pondering that this can be a reliable enterprise.
And at first, these messages had been hurtful. However I can’t make everybody glad, and that’s simply life.
Now I simply remind myself that I created a 6 determine enterprise on my own as a 20 yr previous and I’m pleased with what I’ve constructed. This job has given me a lot pleasure, independence, and monetary freedom and I wouldn’t change it for something, regardless of what the haters say.
12. Is clothes resale a aggressive market? How do you differentiate your self from different sellers?
The clothes resale market could be very aggressive. Virtually any time I stroll right into a thrift retailer, there may be one other reseller there.
One factor I do to distinguish myself from different sellers is that I’m continually studying new manufacturers and tendencies. A whole lot of resellers know the massive manufacturers to look out for, however I’ve taken the time to study 1000’s of manufacturers that promote nicely, and that signifies that I will discover stock that another resellers might not have recognized about. As well as, I’m very detailed in my itemizing titles and descriptions, which helps with the search engine optimization. Apart from that, I depend on the truth that I’ve high-quality gadgets at good costs and I’ve a superb repute on the reselling platforms.
13. What recommendation would you give to somebody who desires to start out a web-based resale enterprise?
- Begin small and don’t spend some huge cash.
- The very best factor to start out promoting is your individual stuff.
- Have enjoyable with it and be open to studying.
- There’s a enormous studying curve so don’t get discouraged when it isn’t extraordinarily worthwhile firstly.
- It takes a whole lot of time, work, and consistency. Be sure to are keen to place within the work to get outcomes.
- Be good to the employees on the thrift shops!
14. How can others discover you- as we’re all followers of you now?
Yow will discover me on my Substack, Instagram, and YouTube. You may as well see my retailer on Poshmark.
Listed here are the hyperlinks:
Substack: https://riegelreselling.substack.com/
Web site: https://sophieriegel.com/
Instagram: @riegel.reselling
YouTube: https://www.youtube.com/channel/UCAR0bfnb695MPJivlLnPBuA
Poshmark: https://poshmark.com/closet/sophie_riegel
Wonderful! Thanks a lot Sophie! That is such an superior interview with so many suggestions and tips for on-line resale. We respect you sharing this with us.
Be sure to comply with Sophie and take a look at her different hyperlinks to seek out out much more about making over 6 figures by reselling gadgets on-line!