Gen Z Poshmark Vendor Sold Used Clothes To Pay For Wedding And Avoid Debt

At first, Kaycie Morwood just wanted to get rid of her old clothes before starting college.

This was the origin of his online store on Poshmark, a marketplace platform for buying and selling clothing and home items. During her first semester at California State University, East Bay, she made just $400 in sales. But after studying the trends and strategies of sellers, she learned how to return clothes from thrift stores and make her casual side profitable.

Since launching her store in June 2016, Morwood has earned $30,000 on the platform, according to documents reviewed by CNBC Make It. For five years, she saved these earnings. Last August, she spent $17,000 — plus a $2,000 gift from her parents — to cover her entire wedding.

“It was really nice to have some extra money, some wiggle room in my budget,” Morwood, 24, told CNBC Make It. “I didn’t have to worry about my marriage putting me in debt.”

Morwood says her savings from Poshmark made her dream wedding possible: less concerned about money, she could invite more guests and splurge on decorations.

Irina L. at Classic Photographers

Today, Morwood is a full-time biomedical researcher earning $55,000 a year. She devotes two hours a week to her side hustle, which earned her an extra $7,000 last year. “It takes about two minutes to install. Then I’ll watch Netflix, work out, or go to my day job,” she says. “Then at night, when I’m lying in bed, I just answer questions, edit lists, and do easy maintenance jobs.”

Morwood also managed to sell different items on other platforms, including Facebook Marketplace and Mercari, which saved an additional $8,000, she says.

Here’s how she’s using data to navigate these resale markets and what she plans to do with the rest of her savings.

A very lucrative pink puppy

Early in her side hustle, Morwood says she spent months selling clothes she already owned and silently stalking other users’ stores to figure out how to grow their own. She also needed a fashion education: Wearing school uniforms until eighth grade left her outside the style loop, she says.

“I wore the same outfit every day for nine years, so I wasn’t in tune with fashion,” she says. “I quickly realized that people are really biased towards brands.”

In March 2017, she got her first big break with an $8 Victoria’s Secret PINK Princess dog. Another seller was trying to get rid of a set of magenta logo plush puppies. Based on previous research, Morwood figured she might buy the largest of the set and resell it for $50.

After purchasing the dog, she did some additional research and discovered that it was priced over $1,000 on other resale apps. She immediately listed it on Mercari, a Japanese gift and toy-oriented resale platform, for $2,000. It eventually sold for $1,200.

Morwood later learned that it was one of only 20 examples ever made. “It really taught me that anything is possible in terms of resale,” she says.

Resell like a data scientist

Although she’s earned more than $1,000 from the stuffed animal, Morwood says she mostly sticks to selling clothes. Poshmark’s buyer base is larger: it has around 80 million monthly users, according to their website. For comparison, Mercari says he had $19 million a month users last year.

Poshmark’s search function also lists the prices of frequently sold items, which helps Morwood continually adapt its resale strategies. Her constant monitoring of this data helped her roughly double her income every year from 2017 to 2020, she says.

Now that the marriage is over, she puts about $6,000 of her savings a year into a Roth IRA and spends the rest on the couple’s mortgage, she says. The success of the side hustle even inspired her husband Drew to start his own Poshmark store. Their new home has a second bedroom dedicated entirely to Poshmark inventory, Morwood says.

Morwood’s husband, Drew, a financial planner, has his own Poshmark closet. He likes to experiment with different selling techniques, like bundling five items for $5 each, Morwood says.

Kaycie Morwood

With work comes a challenge. Some features of the app prevent sellers from defending themselves, Morwood says: When lawsuits are filed against sellers, usually for damaged or stained clothing, the seller is put into a group chat with a Poshmark representative and the buyer. . The buyer almost always wins,

As a precaution, Morwood says she takes photos of each garment before it is shipped to confirm it was clean and undamaged at the time of sale. In some cases, Poshmark refunded the buyer and still paid her for the sale, she says.

The other challenge is time. If it were up to her, she would quit her full-time job and continue selling clothes full-time, she says.

“The biggest downside to my side hustle is that I enjoy it more than my full-time job,” Morwood said. “If I really tidy up my closet and get to the point where I’m making five figures a year, then I would feel good about quitting my full-time job.”

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