What’s Your Closet Worth? How to Resell and Make Money on Luxury Items You Aren’t Using
The resale luxury market was worth an estimated $30 billion in 2020, according to a report from McKinsey, and experts predict that the market will grow by as much as 15% by 2030. There are now myriad ways that one can jump on the resale market and earn big money from selling pre-owned items. However, breaking into that resale market isn’t always easy. How do you know what and how to sell (or where) — and be successful at it? It’s not as easy as just posting some pics online and waiting for the offers to roll in.
Here are 5 tips for turning your closet into a valuable side hustle (or just a source for some extra cash on occasion).
Know the market.
One of the biggest things you can do? Know your market. After all, how can any business or salesperson succeed if they’re not familiar with what consumers are demanding?
McKinsey’s 2021 study is one good place to start. The globally recognized consulting firm conducted a three-month consumer research study over late 2021, to find out what was happening in the resale luxury market.
A few of the key things that McKinsey found? Most of the luxury pre-owned buyers are Generation Z and millennials, younger generations that are more open to the idea of buying pre-owned. Additionally, about half of the luxury resale market is made up of jewelry and watches, while handbags and shoes take up about another third of the market. One of the biggest draws for new shoppers is that buying pre-owned luxury items gives them access to not only sustainable shopping and luxury items, but also rare and exclusive items that they might not be able to find in-store.
As for those actually doing the selling, McKinsey also found that the top reasons for selling their luxury items were the simple desire to free up space in one’s closet, as well as the simple fact that their style had changed, and they no longer wear or use what they once did. Sound like you? Great. Keep reading so you can start selling.
Market your items.
But no one’s going to buy a luxury handbag that’s described in only a few words on a website, and only visible via a lackluster, dimly lit photo. You need to take care to properly market your items and present them in a way that makes them most alluring to the buyer. That means, when taking photos of your items, you want to use good lighting, a blank or neutral background and a good camera. However, while you might think it’s best to hide those imperfections, scratches or general wear and tear, it’s best to show those. You want to be up front about your items’ conditions, so that the consumer knows exactly what they’re getting.
To enhance your marketing efforts even more, you might consider expanding your marketing to your social media channels, so everyone can see exactly what you have on offer and get excited about upcoming offerings.
Hold on to your packaging.
One of the top things that can actually raise the value of your luxury item, with very little effort on your part? Including the original packaging, such as, for example, the box your Louis Vuitton bag came in, as well as the included dust cover. Tags are also appreciated, when available. The high-end packaging helps make a more complete experience for the end buyer, versus just shipping your luxury item in a plastic bag that you’ve stuffed into a UPS box.
Pick the right price.
What price should your luxury item go for? You don’t want to price your item at such a high price point that it doesn’t sell, or takes forever to sell, but you also don’t want to price it at such a low price point that you’re not getting as much cash as you could.
When picking the price for your luxury item, consider factors such as condition, demand, season and whether your item was a limited release. Look at the brand, too. The most popular brands for resale buyers include Chanel and Louis Vuitton, for example (via Vogue Business). This means items from those brands are most likely to sell quickly and you may be able to price your items closer to their original retail value. According to Coveteur, some handbags may go for 70 to 80% of the original retail price, while some watches may fetch prices even higher than what you paid at retail.
Shop with reselling in mind.
As you do your own shopping, it’s wise to keep your future reselling endeavors in mind. What can you add to your closet that’s going to fetch a high price later? Should you be investing more in classic pieces or limited-edition items? Look at your shopping (and your closet) as an investment and try to achieve the highest ROI possible.
Don’t Want to Worry About Any of the Above?
Yeah, that makes sense. It’s a lot of work and hassle to resell your luxury items all on your own. When you choose Luxury in Reach to resell your pre-used items on your behalf, you don’t need to worry about any of this. Our sales process is easy and simple.
All you must do is submit a quick online form that gives us all the need-to-info on your item, and then we’ll provide you with a quote. If you accept our quote, you ship us your handbag via a complimentary shipping label and free UPS pick-up and, within two to four business days, you get paid. It’s literally that easy. There’s no marketing, no waiting around for a buyer, no answering buyer questions or even paying for shipping. We do all the hard stuff, so you can take advantage of the pre-owned luxury resale market in the easiest way possible.
So, what do you need to know to work with Luxury in Reach?
We only buy the highest-quality luxury items, so we base your quote off of factors such as wear and tear, leather scratches, chips on hardware, watermarks, stains and odors. We also consider factors such as condition, year and season, current retail price and authenticity. Once you receive a quote for your item, you have up to 30 days to accept the quote. We currently accept a range of designers, including Chanel, Louis Vuitton, Hermes, Gucci, Dior, Burberry, Prada, Fendi, Balenciaga, Goyard, Celine, Cartier, Rolex and Van Clef.
Ready to get started? Fill out our simple quote request form today! You never know just how much extra cash could be waiting in your closet.