How to Master Online Sourcing for Resellers
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What Is Online Sourcing for Resellers?
Online sourcing for resellers refers to the process of finding inventory to resell by purchasing from digital platforms instead of physical locations like thrift stores or yard sales. It’s an efficient way to source inventory without leaving the comfort of your home. Resellers can shop from platforms like eBay, Poshmark, and The RealReal to find items that fit their niche and profit goals.
One misconception about online sourcing is that it’s only for the luxury reseller or experienced seller. The truth is, anyone can benefit from sourcing online, whether you're flipping vintage finds or designer handbags. The key is to do your research, understand market trends, and know which platforms best suit your needs.
Why Is Online Sourcing Important?
Online sourcing has become a critical part of the reseller ecosystem for several reasons:
Convenience: Instead of driving from one thrift store to another, you can access inventory with just a few clicks.
Scalability: As your reselling business grows, sourcing online allows you to manage higher volumes of inventory efficiently.
Endless Opportunities: With platforms like Poshmark, ThredUp, and Goodwill.com, the variety of inventory is virtually limitless.
Data-Driven Decisions: Many platforms provide insights into sales trends, pricing, and buyers behaviors, allowing you to make informed decisions about your purchases.
Whether you're sourcing mid-tier brands or luxury items, online platforms offer unparalleled opportunities for resellers to build their inventory and maximize their profits.
Real Examples of Online Sourcing Platforms: The Reseller’s Guide to Designer Treasure
Here are five popular platforms for sourcing online and what makes each unique:
1. Poshmark
Pros:
Poshmark’s user-friendly platform has many advantages for both new and experienced resellers.
Many resellers list items without researching market trends, often leading to undervalued inventory.
Great for finding clothing, accessories, and even luxury brands.
Cons:
The cost of items on Poshmark can be higher prices than other platforms, as many users are aware of what their items are worth.
If the item cost is below $500, it won’t qualify for Poshmark’s authentication service, which increases the risk of counterfeit brands.
Pro Tip: Use the search filters to zero in on deals and target items from sellers with lower feedback or limited activity—they often price items to sell fast.
2. eBay
Pros:
eBay is the largest reselling platform with endless inventory, from designer clothing to vintage accessories.
eBay auctions can land you incredible deals. (I once scored brand-new Manolo Blahniks for $90!)
With millions of daily users, you’re sure to find high-demand items in almost any category.
Cons:
eBay has a steeper learning curve, which can intimidate casual sellers, meaning you may miss out on those super undervalued treasures.
Tracking shipping cost and ensuring timely delivery can add complexity to your business model.
Pro Tip: Save searches for your target brands and enable alerts to stay ahead of the competition when sourcing inventory.
3. The RealReal
Pros:
Items at The RealReal are consistently discounted as their consignment period progresses, creating opportunities for savvy resellers to snag designer inventory at rock-bottom prices.
Their volume means items sometimes slip through the cracks. I once scored a $6,000 runway dress for just $80!
Cons:
Most of their deals are final sales, which can be risky if the product quality doesn’t match expectations.
Shipping fees and handling times can cut into your profit margins.
Pro Tip: Use The RealReal to build your luxury resale business. Purchase items in high demand that are likely to sell fast.
4. ThredUp
Pros:
ThredUp offers thrift store-level prices with the convenience of sourcing online.
A treasure trove for beginner resellers, as you can often find items in great condition at extremely low cost.
Cons:
Searching can be time-consuming and feel like digging through a virtual bargain bin.
Their selection isn’t curated, so expect to spend more time sorting through inventory to find gems.
Pro Tip: Use their “Goody Boxes” or curated kits for an easy way to source inventory in bulk and test what works for your reselling business.
5. Goodwill.org
Pros:
Goodwill’s online auction site offers a more curated selection compared to their thrift stores, saving you time.
You can often purchase clothing, accessories, and household items that are ready for resale.
Cons:
Goodwill knows the value of their items, so expect to pay premium prices compared to in-person shopping.
Auctions can be competitive and require patience as you wait to see if you’ve won.
Pro Tip: Set a maximum bid in advance to avoid overpaying and cutting into your profit margins.
Best Tips: Online Sourcing for Resellers
1. Research Before You Buy
Use platforms like eBay and Poshmark to track market trends and understand pricing.
Look for sellers who price items to sell fast or have limited activity on their accounts.
2. Track Shipping Costs
Always factor in shipping fees when calculating your potential profit margins.
Compare shipping rates between platforms to avoid unexpected costs.
3. Set Alerts for Your Favorite Brands
Platforms like eBay allow you to save searches and receive alerts when new inventory is listed.
4. Experiment with Different Platforms
Each platform caters to a different audience and inventory type. Test them all to see what works best for your business.
5. Invest in Tools
Use inventory management software or analytics tools to track your purchases, sales, and profit margins. Personally, I'm all about tracking my numbers as this is a critical aspect of running a business. I even created a Reseller Business Dashboard to help with tracking your business numbers which will enable you to grow your business and make better decisions. My Reseller Genie is also great if you're looking for a more complete accounting solution.
6. Look for Undervalued Gems
Some platforms, like ThredUp or The RealReal, are known for mispriced luxury or vintage items. Take advantage of these opportunities.
Common Questions About Online Sourcing
What is the best platform for online sourcing?
The best platform depends on your niche and business model. If you’re focusing on luxury items, The RealReal is a fantastic option. For beginners, Poshmark or ThredUp are user-friendly and affordable.
How do I ensure profitability when sourcing online?
The key to profitability is factoring in all costs, including shipping and fees. Use tools to track your profit margins and ensure you’re buying inventory that aligns with market trends.
Can beginners succeed with online sourcing?
Absolutely! Platforms like Poshmark and ThredUp are beginner-friendly and provide a great starting point for resellers. Start small, research, and scale as you gain experience.
What should I avoid when I source inventory online?
Avoid overpaying for items by setting a clear budget for each purchase. Additionally, be cautious of counterfeit items on platforms that lack authentication services.
How do I handle returns or items in poor condition?
Some platforms, like Poshmark, allow returns for misrepresented items. However, others, like The RealReal, have final sale policies, so inspect listings carefully before buying.
Conclusion
Sourcing online is a game-changer for the reseller community, offering convenience, scalability, and access to an infinite pool of inventory. Whether you’re sourcing from Poshmark, eBay, or ThredUp, the key to success lies in research, strategy, and adaptability.
By leveraging the tips and strategies shared in this guide, you can build a profitable and sustainable reselling business that aligns with your goals. Don’t let limited local options hold you back—embrace the power of online sourcing and watch your business thrive!
For more tips, strategies, and insider insights on building a successful reselling business, follow me at @theglobalcollectiveco. Let’s take your online resale business to the next level!
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