Sourcing Inventory Poshmark Wholesale

Many Poshmark Sellers begin their selling business’s from selling items from their personal closets, as well as from unwanted clothing items from friends and family members. As you grow your Poshmark business sourcing begins to play a key component in the successful growth. Majority of Poshmark sellers source inventory in the beginning stages through thrifting at Goodwills and other local thrift shops. In this blog post, you will learn the secrets of sourcing Poshmark wholesale inventory from a long-time seller with over 100,000 Poshmark followers. When my husband I first began reselling we started the business with $500 and over a 5 year period grew it to a steady $50,000 a year profit while raising a daughter and working full time. With over 10 years of reselling experience reselling has become a full-time business for us.

Let’s Dive On In and Get Sourcing Poshmark Wholesale

Methods for sourcing

There are four main methods to which a seller can source for Poshmark.

Retail Arbitrage – Often referred to as (RA), is the method that you source from local retailers and then sell those same items online for a profit. An example of this is sourcing clearance items from Marshalls, TJmaxx, Nordstorm Rack and then listing those items on Poshmark for profit. I personally have had a huge success with shoes from Marshalls. This past fall the local Marshalls placed Adidas soccer cleats on the clearance rack for $5.00 each which had an MSRP of $85. We were able to profit approximately $30 per set of shoes. Closeouts and After Holiday Sales are also great ways to catch deals. Dick’s Sporting Goods recently had a massive clearance section on shoes and clothing. Keep Your Eyes on those clearance racks!

Outlets can also be a great source for Poshmark inventory keep in mind that outlets manufacture items exclusively for their outlet store. Take Michael Kors, for example, the bags which you see in a Michael Kors outlet are the lowest grade produced by the brand. Reselling merchandise like such can run into problems when a customer may make claims against its authenticity. I have seen a few Poshmark sellers who have built a business around sourcing at just one outlet store. Many times those resellers actually work at the outlet so they are able to list items that are on hand in the store, they receive an employee discount and resell. From my research, the profit margins are relatively low. Watch the video below! There are numerous sources on the web on this topic.

Online Arbitrage– Often referred to as (OA), is the method that you source from online retailers and then sell those same items back online for a profit. We had tremendous success sourcing early on in this manner. Two great examples of this are Michael Kors and Lids. We signed up for the KORSVIP on Michael Kors which sends exclusive email discount codes from time to time. Once signed up you will receive email alerts to when sales are taking place. To find great deals on an online retailer like such simply navigate to their sales page and select a price range from low to high. We found replacement handbag straps with an MSRP of $99 for just $12.50! Lids.com for example also has a Lids Access Pass which is $5 a year and gives you an additional 20% off of all of your online hat orders. Lids frequently advertise sales using the same technique above searching sale items low to high we were able to score New Era branded hats between $4-$7 which retailed $35+. Keep in mind stick with popular teams that have a large fan base. You can use these techniques just about on any online retailer, it will take a little bit of work and you may not always find a great deal. Patience is key. Retailers we recommend keeping an eye on for sale items: Michaels Kors, Lids, Macy’s, and Nordstrom Rack.

Thrifting– Many Poshmark sellers build successful businesses through sourcing at thrift stores such as Goodwill, Goodwill Outlets aka BINS, Salvation Army, Savers, and Local thrift stores. In addition to thrift stores, Poshmark sellers have had great success sourcing from friends, family, Facebook market place, flea markets, estate sales, storage lockers, and yard sales. A quick google search of your area will provide great leads.

Wholesale Liquidation- You may have heard of Poshmark wholesale, Wholesale liquidation and Poshmark wholesale are completely different. Poshmark offers Poshmark wholesale where you as a buyer can buy items from other approved sellers at a slightly larger volume. We personally do not recommend purchasing from the Poshmark wholesale page. If you are not familiar with Chinese based alibaba.com you should have a look. 75% of the items on Amazon come from alibaba.com. Many of the Poshmark wholesale items are sourced right from alibaba.com, we have tested the quality of clothing items from alibab.com and have never been impressed. With that said the trending popular brand GymShark is source right there from alibaba.com where they have the leggings branded.

The one area I believe scares resellers the most is making that next move to buy on larger scales. When sourcing inventory for Poshmark you also have to consider the time spent driving from store to store finding items to resell. Wholesale liquidation buying allows you to source right from your computer. Over the past few years, this has become our primary method for sourcing inventory for Poshmark in addition to Online Arbitrage. When it comes to buying liquidation lots they can range from a box (Carton) to a pallet or a full semi- truckload. Generally, all items are manifest which are in the lots. We do not buy without a manifest. Condition and price are the most important consideration one must consider. A good rule of thumb on price when it comes to liquidation is to buy at no more than 10-15% of the MSRP price. For example, if a pallet of clothes has a total MSRP of $10,000 we recommend not spending more then $1000-$1,500. Keep in mind the shipping cost for a pallet can range $100-$400 depending on the distance. If you require a liftgate there could be an additional charge as well. Liquidation lots typically are advertised in 4 condition types.

Liquidation Condition Types

New– This is a lot that is considered New, depending on the type of lot you may see these lots selling for a range of 10-30% of MSRP.

Shelf Pull– Shelf Pulls are items that have been sitting on a shelf or rack. Typically they are new items with tags or original packaging. You may encounter a few items without tags in these lots. We recommend purchasing at no more than 10-15% of MSRP.

Customer Returns– These are lots which have been returned, typically they are a mix of New and Salvage conditioned items. These lots come with high risk but also can yield high profits if the lot has a high percentage of New items. We have purchased these lots in the past and tend to avoid them with the risk they entail.

Salvage– Just as it sounds the condition of the items in these lots is Salvage or Broken. We have also purchased lots which were considered Salvage. An example of the lot we purchased was Salvage Beat Headphones. One of the most common issues with the Beat Headphone is that when users place them on their head and extend the earpieces to fit over their ear the repetition of this pulls the wire which runs into the earpiece. This eventually will pull the wire and users will return due to the fact that one ear would stop working. With a simple soldering kit, we would repair the wire within about 10-20 minutes. We would purchase these salvage between $15-20 a unit and resale for $75-80.

Resale Certificate

In order to purchase liquidation lots, many liquidation companies will require a resale certificate. A resale certificate allows you to collect sales tax on items that you are selling. Most liquidation companies will not charge you a sales tax when you purchase from them which is why they require the resale certificate. Visit the link below to learn how to obtain a certificate in your state. Resale Certificate State Forms

Distribution of Merchandise

Direct – The most asked question I get when people find out that we are resellers is “How do you find a direct source for (Fill in the Blank Company)?” That is the like asking for the winning lottery numbers to the Mega Millions! Ha. Reselling is a lot about DRIVE and Passion! You have to be willing to put in the time and work for success. A direct source is having a relationship directly with the company or product you want to source. Let’s take Macy’s for example, You want to purchase liquidation lots and pallets which come from Macy’s. You can either purchase directly or through a secondary company (Middleman) or direct from the source. The hardest part of the reselling game is finding and establishing direct leads. Direct leads offer the best pricing to source at.

Secondary Businesses (Middleman)– In the example above we used Macy’s. Let’s continue in that example. A secondary business or what most would call is a middleman. There are many company’s that have all of the resources such as funding, employees, inventory systems and storage capacity to buy on a large scale from a retailer during closeouts. As smaller sellers most can not store truckloads upon truckloads of merchandise untold it is sold. These companies who are able to buy on a large scale normally are offered a large discount to do so. Many retailers will not work with the small seller for just that fact when they want to closeout inventory they want to free that space in their warehouses. A large liquidation company such as Via Trading (Source below) has an established relationship with Macy’s. Visiting the VIA Trading site will see numerous lots and pallets for sale. Without research, resellers would buy without hesitation from a company like such but this is not DIRECT! To understand the supply chain VIA Trading purchases its inventory from Macy’s at 10% of MSRP and then will list it on its own website for 20% of MSRP to resell to a novice reseller, at which they made a 100% profit! What a smart reseller would do is research and find those direct leads. Yes, you can source directly from Macy’s! Scroll down for my direct source!

Establishing Poshmark Wholesale Leads

There are many ways to find leads for direct sourcing inventory for your Poshmark business.

Google is a very powerful tool when you search for terms relating to sourcing. Try to search these terms and phrases for starters below in your area. Many leads are generated through old school techniques such as calling businesses, speaking with managers and owners. Let say you want the direct lead to Victoria Secret’s, visiting your local store, calling and emailing may not produce great results for the fact Victoria Secret’s is a brand under LIMITED BRAND LLC, Limited Brands include Victoria Secret, Pink, and Bath & Body Works. You would want to search for contacts at Limited Brands. LinkedIn can also be a great tool for establishing contacts within a business.

If you were seeking items from Lane Bryant you would want to contact or research Ascena Retail Group, who is also the parent company for Ann Taylor, LOFT, LOU & GREY, Cacique, Catherines, and Justice.

Google Terms to try.

Liquidation
Closeout Inventory
Closeout apparel
Clothing Pallets

Another Great way is searching the same terms through google images. These terms are very general and to give you an idea of where to start. Play around with search terms and see what you can dig up.

Social Media

There are many larger groups on Facebook geared just towards sourcing products and full of tips and tricks for the reseller.

Trade Shows – ASD

Attending fashion and sourcing trade shows such as ASD can generate leads only attendees will establish. https://www.asdonline.com

Share your Poshmark with Closet With Closet Assistant! Learn More about Closet Assistant

Sources

The list below is just a small sample of sources that are out there. We recommend searching in your local area with the tips suggested above. Sourcing inventory is a lot like being a detective.

BStock Supply– Made up of many 2^nd Level Sellers who source directly in large volume and then sell smaller lots.

https://bstocksupply.com/

BStock Solutions– Direct Source to Companies such as Home Depot, Costco, Lowes, Target, Walmart and more!

https://sourcing.bstock.com/

Liquidation.com– Made up of many middle-Level Sellers who source directly in large volume and then sell smaller lots. Also Direct source to Walmart and Amazon.

https://www.liquidation.com/

Via Trading– Liquidation wholesaler who sources directly in large volume and then sell smaller lots. (California)

https://www.viatrading.com

Discount Truckloads– 2^nd Level wholesaler who sources directly in large volume and then sell smaller lots. (Texas)

https://www.dtlots.com/

Direct Liquidation–

www.directliquidation.com

Simple Lots– Online market place connecting 2^nd Level wholesalers to 3^rd Level resellers.

https://www.simplelots.com/

BULQ– Avoid! Bulq has a large eBay store, the items here are all picked over with little profits.

https://www.bulq.com/

Wholesale Ninjas–

wholesaleninjas.com

Wholesale Central– A great source for Trade Shows and connecting to liquidators.

https://www.wholesalecentral.com/Closeout-Suppliers.html

American Merchandise Liquidators–

amlinc.com

MJ Trade– Typically offers Limit Brand lots. (Ohio)

https://www.mjtradeinc.com

American Jen– Typically offers Victoria Secret lots.

American Jen – Facebook Group

Walmart– In addition to B-Stock Solution Direct Walmart Pallets and Loads can be found here.

https://liquidations.walmart.com

BrickSeek– A great resource to sourcing Walmart and Target clearance items.

www.brickseek.com

Genco– (JCPenny and Kohls)

https://www.gencomarketplace.com/

Other Sources.

Estate Sales and Local Auctions

AuctionZip – Great to find local estate sales.

https://www.auctionzip.com/

Estate Sales

https://www.estatesale.com/

Storage Auctions

https://www.storagetreasures.com/live-auctions

Government and Police Auctions online.

Gov Deals

https://www.govdeals.com/

GSA Auctions

https://gsaauctions.gov/gsaauctions/gsaauctions/

Wholesale Clothing

There are numerous websites who offer wholesale clothing for Boutiques. Searching for terms, Sourcing for Boutiques or wholesale clothing on google will generate numerous leads. The fashion districts in New York, LA, and Chicago are also great if you are looking for boutique clothing items. I would avoid buying from sites like Alibaba and DHgate for Poshmark. The sizes and quality can vary. Always buy small or ask for samples before going all in!

Macy’s Direct Source

As mentioned above it’s all about sourcing direct. Below is the link to sign up to become a direct buyer of Macy’s liquidated merchandise. Macy’s offers three ways to purchase lots/pallets. Buy it Now, Auctions, and Email discounts. Macy’s will send emails out to all of its approved buyers when they are really attempting to move product. These emails typically are in an excel format and offer the best purchase price of lots, these lots sell very quickly when the emails are sent out. Macy’s also runs weekly auctions on pallets the prices normally are very reasonable depending on the bidders. Avoid the Buy it Now unless you plan to slash your margins.

One thing to keep in mind review the manifest! You will see pallets with top brands mixed in with lower brands. Retailers do this to move the lower branded items that are stale and sitting. A common tactic is a pallet of clothing “Women’s Designer Clothing by Free People, Michael Kors and more” When you dig into the manifest there may only be 10 top branded items mixed into a pallet of 300 items. When buying directly from Macy’s for your Poshmark Closet, Pallets start between $1000-$1500 excluding shipping.

Macy’s in Store

With many of their stores closing throughout the country, Macy’s offers a clearance section in stores “Last Act”. This section can be a great way to the source while allowing you to pick brands you know will sell! Sourcing in this manner you want to find those 85 % off or more off items!

Macy’s Liquidation – Click Here

Keys To Sourcing Poshmark Wholesale

Discipline – Whenever and where ever you are sourcing for Poshmark you must have a plan and strategy. You must know when to pass and to buy on items.

Know What You’re Buying- Whether it’s sourcing at Marshalls, Goodwill or a wholesaler you must know what you’re buying! What are the policies of that supplier in case you encounter an issue with your purchase or order? Does this Retailer or Supplier have positive reviews? When purchasing from liquidation suppliers I cannot urge enough to review the manifest! I have seen time and time again where new buyers do not review manifest!

Checking Comp’s- Wherever you source inventory for Poshmark, YOU MUST ASK YOURSELF “What is this item selling for?” and “Can I make a profit on this?”

TIP: When contacting sources a business email goes a long way! If you are using a Gmail, Yahoo, Hotmail, and for some of you an AOL email, it’s not professional sounding. Many companies will not take you seriously if your email is CUPCAKE@GMAIL or TooSexyCutie@Yahoo. Many hosting sites like GoDaddy allow you to create a professional email for a small amount.