Selling Clothes: ThredUp vs. Poshmark

There are several resale websites/apps for clothing and fashion items. Two of the biggest are ThredUp and Poshmark. Both have great marketing, but which one is ACTUALLY better to use? I’ve used both, and none of this is sponsored. Just my thoughts and a few quick math calculations on ThredUp vs. Poshmark Let’s explore which is better to make money, and which will help you just get items out.

 

Which Earns You More Money?

If you are trying to make money, Poshmark wins HANDS DOWN. In fact, if you google “ThredUp Reviews,” almost everyone is upset with the tiny return they were given on sending in so many clothes – especially if they are name brand. This is something I wish I would’ve considered a bit better.  Poshmark’s policy is that if an item sells for under $15, then Poshmark will take $2.95. For all items above $15, Poshmark takes 20% and you keep the remaining 80%.

 

Take a look at ThredUp’s “How Much Will I Earn” page (link!) Um OUCH. Thredup will pay back a measly 5% on your items under $15! So just for kicks, say an item sells for $14.99 on both sites. If you were to sell this item on Poshmark, you’d receive $12.04. Not too bad, right? But if you sold that same item for the same price on ThredUp, you would receive $0.74. Yes. UNDER A DOLLAR. An item has to sell for over $300 on Thredup to get the same payback percentage that  Poshmark gives at $15! So here is a quick comparison of what an item would payout on ThredUp vs. Poshmark 

 

Table 1: The price an item is sold for and the comparative costs that you, the seller, would get in return from ThredUp vs. Poshmark… Update as of 12/30/17, the ThredUp numbers would now be lower based on their new payout chart. 

 

Actually, the Thredup Numbers have gotten WORSE over time….

When I originally created this article…this was the screenshot direct from the ThredUp website.

 

 

direct from the ThredUp website….

Updated ThredUp Payouts, now worse for Women’s clothing!

Updated December 2017: Note that two of the most common sections for listings “$15-$19.99” and “$20-$29.99” have decreased their allowance for the seller. Yikes!

directly from the ThredUp website on 12/30/17

And here is the thing, since ThredUp has SO many great affordable options, they are making a killing. As a buyer, you can buy like new name brand clothes for under $15. In fact, if you want a $10 credit to ThredUp for shopping secondhand, {click here}….But for every under $15 happy buyer is an unhappy seller who knows those clothes were worth more than $0.74, and ThredUp is laughing it’s way to the bank. With Poshmark, you can actually make a decent amount of money, it just might require patience.

 

Which is better to Get Rid of Items Fast

 

Now, I do believe that there is a time and place where ThredUp may be better. Again, it  ISN’T better if your goal is to make money. I think the numbers easily prove that above. The time I think that ThredUp is most beneficial is if you are trying to truly do a “cleanout.” If you want to simply get clothing items out of your house and want to potentially make a few dollars (if you’re lucky) and know the rest will be recycled. If you don’t like conveniently near a donation center or don’t have access to a vehicle to get rid of many items at once, then ThredUp would win. If you are moving and don’t want to bother with yet another trip out, then ordering a clean out kit might be better. After all, if you were going to donate the items anyways, it might be nice to get a little something back. Just remember, it really is going to be a LITTLE something.

 

Poshmark, on the other hand, is based on each sale. So if you have twenty items that you want to sell quickly, Poshmark wouldn’t be ideal because selling that many items could take months. Poshmark REALLY depends on the quality of clothing and even more importantly quality of photos. Crappy pictures won’t get you a sale. The better you “style” items, the more likely they are to sell. There is a lot more time and thought put into Poshmark, but along with that is the greater return.

 

So really the choice is, do you want the free space right away, or do you want to make money?  I’ve done both. I sold a clutch for $20 on Poshmark (Which earned me $16). It had just been sitting around and it earned me money, yay! But most of the items I listed on Poshmark didn’t get much traffic, and ultimately I ordered a ThredUp Clean Out Kit a month later. Unfortunately, I didn’t look at the horrible rate of return on the clothing. Had I done so, I would’ve made an effort to get these to a local women’s shelter. In the end I sent in a full bag of like-new items to ThredUp, and received under $15.  I took the easy way out and was uninformed, so I am hoping to let others know to avoid the same experience. Know what you are getting into with either company!

Let me know, have you used ThredUp? Have you used Poshmark? What were your exeperiences like??

-Rachel

note: the Thredup link to get $10 credit {click here} also gives me a $10 credit if you make a purchase. I like Thredup for shopping, but not for selling.



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