Reselling Clothes: A Strategic Moneymaker During Coronavirus
May 27 2020 - 10:02AM
Dow Jones News
By Jacob Gallagher
AT THE END OF MARCH, Diana Karen Mireles was furloughed from her
job as a marketing coordinator at a Los Angeles shoe store, yet
still managed to pay off a longstanding car loan within weeks. How
did she pull off this budgetary wizardry? By raking in over $3,000
selling her old clothes on Poshmark, an online resale marketplace.
"Most of it is things that I just haven't worn and that have been
taking up space in my closet, " said Ms Mireles, of the more than
200 pairs of shoes, sweats and other clothing items she
unloaded.
Many other Americans with more time on their hands and less
money in their wallets are making money by flipping unwanted
clothes through e-markets like Poshmark, Grailed, eBay and Depop.
The latter, a site focused on clothing for thrifty millennials, saw
an over 100% year-over-year increase in traffic this April. From
mid-April to mid-May, Poshmark experienced a 50% increase in
clothing and accessories sales compared to the previous year.
Though it did not provide specific figures, Grailed also reported
an uptick in new product listings and site usage in April, as
well.
EBay experienced its own spike. Since around mid-March when many
lockdown orders were initiated in the U.S., clothing listings on
its American site surged by nearly 67%. "With people stuck at home
during a traditional spring cleaning season, many are looking for
at-home projects or ways to make extra money," said Jordan
Sweetnam, the senior vice president and general manager of eBay
North America. "Decluttering, revamping their wardrobe or starting
a side-hustle have become pastimes for people."
Emily Chen is one such hustler. Since getting furloughed from
her job as an office manager in New York City on April 1, Ms. Chen
has used Poshmark to clear out little-worn shirts, jeans, sweaters,
shoes and T-shirts in her closet. In some cases, the clothes --
from brands such as Madewell, Zara and Gap -- still had their tags
on. Her new side-gig has proven to be quite lucrative: By the end
of April she'd earned a couple hundred dollars, and still had over
100 items listed. The obvious monetary benefit aside, Ms. Chen said
that selling clothes has been a good way to occupy her suddenly
empty workdays.
Flipping fashion can certainly demand a lot of hours. On some
days, Ms. Mireles starts building out the Poshmark listings and
photographing her pieces at 10 a.m. and doesn't wrap until 6 p.m.
When his in-person classes halted in March, 21-year-old Nathan
Schoeck, a college student at Texas A&M, finally had the free
time to list his collection of vintage jeans and jackets for sale
online. Mr. Schoeck hawks his pieces through @foreverweathering,
his dedicated Instagram resell account, coordinating sales with his
followers, after they send him a direct message. He prefers
Instagram to sites like Depop and Grailed because he doesn't have
to pay a fee to a middle-man, cutting into his profits. "This is my
side thing to get my own money to just buy clothes or buy food,
things like that," he said.
Platforms are trying to assist all the new sellers who are
jumping on this particular bandwagon. Since March 28, Poshmark has
staged over 600 virtual "Posh N Coffee" workshops via Zoom,
intended to guide users and answer questions. For its part, Grailed
published a Covid-19 help guide that answers questions such as "I'm
unable to leave the house to ship -- what should I do?" and "Will
there be shipping delays?" The sellers that I spoke with reported
no issues with shipping in the last while. Most of them schedule
United States Postal Service pickups at their homes, which have
gone smoothly. One seller even reported that packages were being
delivered faster than he'd anticipated.
These amateur vendors have seen little indication that the
pandemic is dampening America's shopping fervor. "I've actually
seen an increase in sales," said Christopher Juan, 20, a college
student living in Burbank, Calif., who has been a longtime Depop
seller. With more people idling at home, he theorized, they're
turning to online shopping to fill the hours. After one of Ms.
Mireles's clients made multiple Poshmark purchases of around $250
each, she messaged her star shopper. The woman admitted she was now
working from home and splurging on Poshmark to break up her work
day.
None of the sellers I talked to reported any concerns among
their buyers about purchasing contaminated clothing. Medical
experts have said that the risk of catching coronavirus through
fabric is low, yet a representative from eBay recommended washing
all clothes purchased on its site before wearing them as an extra
precaution.
The coronavirus has affected what sort of item constitutes a hot
seller. Grailed, whose vendors specialize in hyped streetwear and
high fashion, witnessed a jump in listings of designer face masks,
like one from Virgil Abloh's brand Off-White which recently sold
for $110. Sofa-bound shoppers are also gravitating to anything
cozy. At Depop, sales in the U.S. of sweatshirts are up 320%,
tracksuits up 170% and loungewear sales are up 260% compared to
last year's figures. New York's Ms. Chen noted that any of her
items that are relevant to downtime sell swiftly on Poshmark. "I
listed some workout pants that I haven't worn, and those sold
pretty quickly because people are looking for an at-home
loungey-wear thing."
But as our collective need to dress for social outings has
largely evaporated, not all clothes are flying off the digital
shelves. Predictably enough, Mr. Sweetnam at eBay noted that sales
of formalwear and dress shoes are down. Strappy sandals don't get a
lot of screen-time at Zoom parties.
Write to Jacob Gallagher at Jacob.Gallagher@wsj.com
(END) Dow Jones Newswires
May 27, 2020 09:47 ET (13:47 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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