Updated: Feb 24, 2019
You Have Your Boutique Certification, Now What?!
Now that you have your Poshmark Boutique, let’s discuss some aspects that will help your business be a successful one. Once you’ve started your own boutique, you have to define your brand, think about possible advertising and plan financially for expenses and the costs of the business itself.
This blog is going to touch upon the aspect of buying new and boutique inventory for your Poshmark closet. You can sell used clothing on Poshmark, but the point of this blog will be things to remember when buying new clothing inventory.
If you want your boutique to be completely NWT & Boutique, there are 3 ways to do this
Sell all “New with Tag” items. These are items that are purchased from a mall or a store and were purchased at a retail price. These items have not been used and they still have their original retail tag.
Sell all "Boutique" Wholesale from the distributor. This means that you are buying directly from the wholesaler and are reselling these items for a profit.
Sell both together. A mix of New with Tag and Boutique inventory.
When purchasing inventory, there are a few points to keep in mind when comparing wholesaler items and new with tag items.
Popularity of the recognized brand
Customers are more likely to purchase items with a name brand that they recognize or are familiar to them. Customers understand how these brands fit, their quality and they recognize how much these brands usually cost.
When buying and reselling these items, keep in mind that you want to create a deal for your customer. It may take longer for you to make sales if your items are as much as they would cost at a standard mall or brick and mortar store.
You want to create a sense that the customer is getting a great deal by buying from you. You’ll also want to pay close attention to the brand itself. Some brands are popular now because of trends but once the trend fades, the popularity will fade as well. Other brands are well established classics and will always be popular, regardless of the current trends.
POPULARITY OF THE RECOGNIZED BRAND
It’s one thing for a customer to recognize a brand, it’s another thing if the brand is recognized, but no one is interested (I learned this the hard way). “Abercrombie & Fitch” is a prime example of this. This brand was very popular at one point in time but has since faced legal issues which greatly impacted the view of the company to customers.
Customers recognize the name, but because the company is tied to legal issues involving discrimination, many are no longer interested in the brand – even though they may have actually liked the brand in the past.
Knowing this type of information can save you time and money on buying inventory that will simply sit, waiting to be purchased (and may never be purchased by anyone). On the other hand, a company like “Nike”.
Nike has been around for many years and is very well known with a cult following. Even after the most recent controversy, Nike is still a brand leader. If you have anything made by Nike in your closet, it will sell.
Purchasing wholesale items with unrecognizable brands can be tricky. These items will still sell, but this can be a risky pursuit. When selling brands that are not known by customers, it’s important to do your own review and provide as much information as possible regarding how the sizes run, the materials used in the garment and the overall quality.
Providing this information can make the buying decision process a little easier for your customers. If you’ve built a reputation for being honest, customers will trust your description and will be more likely to purchase, regardless of the name.
On the other hand, if your boutique is new, it may take a little brand building of your own before the customer can trust your advice/review about a garment. Honesty is always the best policy on Poshmark, so if you’re completely honest about the garment (for example: “the material is thin and slightly see-through, you may need to wear a camisole underneath”), customers will begin to trust you and they’ll feel more comfortable buying from you. In turn, this will build your brand.
As stated previously, customers want a deal. If you’re boutique is new, people are less likely to choose purchasing from you over a closet that they are familiar with or even one with more followers or more inventory.
For this reason, you want to give customers a reason to purchase from you. In my personal experience, I slash prices by at least 50% (or more) for new with tag items and reduce prices by at least 20%, based on the MSRP (Manufacturers Suggested Retail Price) when compared to other retailers.
Unknown by many customers, stores charge as much as 400% mark-ups on clothing in their stores. With this type of price hike, you can easily charge a 100%-200% mark-up for wholesale items and still offer a deeply discounted price.
One mistake I’ve seen some Poshers make, is to offer inventory at the standard retail price. In my opinion, this is a mistake that will always lead your customers elsewhere. If customers don’t feel like they’re getting a deal or if they feel that you’re overcharging them, it will automatically turn them off and they won’t buy it (at least not until it goes on sale), you may even lose a potential customer.
Me, myself, if I see a Posher charge an arm and a leg for an item that I know I can get a lot cheaper, I end up disregarding the rest of their closet because in my mind, everything is overcharged. Keep this in mind when deciding your prices.
Pay close attention to brands and their popularity.
Price your items reasonably (at a price that’s deeply discounted when compared to the MSRP).
Make the customer comfortable by providing honest information regarding your items.
Be descriptive in your listings.
I hope this article has been useful in helping you to decide how to buy for your Poshmark closet.
Feel free to leave a comment with questions or suggestions.