Selling second-hand goods can be a good side hustle. Whether you are selling your unwanted clothing from some of the best luxury brands or reselling items from British luxury brands that you have gotten at a steal. Some people can even successfully turn to sell second-hand luxury goods into a small side business or even a successful full-time career with the right strategies. One of the best parts about getting started is that it doesn’t require a high investment. You could find some affordable luxury brands that people will be willing to buy, simply by decluttering your wardrobe!
One of the biggest challenges that you are likely to face is how much to charge for the product. While many people are often willing to pay more for luxury brands in the UK, you also have to consider the fact that you are selling preloved goods. People are looking for a bargain. If you ask too much, you may struggle to sell the item. On the other hand, ask too little, and you’re going to miss out on a profit.
So, what can you do to make sure that your second-hand luxury goods are priced correctly every time?
Research the Current Retail Price
Researching the UK luxury brands that you are selling to find the current retail price can provide you with a starting point from which to base your pricing strategy. Knowing how much the item sells for when it is brand new can help you determine how much people might be willing to pay for it second-hand. Allowing you to decide on a price that earns you a profit but is also attractive enough for buyers to want to snap the item up and get a bargain. When researching current prices, make sure that you are looking at the right design. Products are constantly getting tweaked and updated. In some cases, a second-hand luxury product that’s no longer in production or was a limited release could fetch a lot more than the previous retail price.
Research Similar Items
Whether you’re selling items from global luxury brands or slow fashion brands in the UK, you can get an idea of how much people are willing to pay for the items by looking up similar items that are for sale second-hand online. This can also give you an idea of your competition and help you choose a price point that is also competitive and more likely to attract buyers to your product. Consigned Sealed Delivered is an ideal place to start for selling those luxury items that you do not use anymore. CSD is an online platform offering some of the best luxury brands, and browsing through the site before you get started can help you get a better idea of where to price your products. You can then use CSD (Consigned Sealed Delivered) as your main platform for selling your top luxury brands, or even to purchase new luxury clothing items and accessories to sell on.
Consider Depreciation
Almost everything will lose some value after it is originally produced, and fashion items are no different. The main exception to this rule is limited edition luxury products that are no longer available to purchase brand new.
If you are selling an item that fits into this category, you might find that it has gained value over time due to its scarcity in the market. However, in most cases, resale experts recommend pricing items at half their original cost if they are still fairly new. 25% is recommended for anything that is a few years old, and 10% for everything else. But it’s worth considering the category for your second-hand items before deciding on the price using this method, as it does not apply to everything. For example, you may be able to get more for antique accessories and jewelry or vintage clothing items. Unused goods that are still in their original packaging or still have their original labels are also likely to sell at a higher price.
Consider Additional Costs
Along with pricing your items, it’s also important to consider any additional costs of selling. Packaging is a great example. Postage, and any cleaning/repairing costs may need to be paid before your item is in a good condition to send to the buyer. For some items, the cost of packaging and postage might be high. It’s worth factoring this in before you list your product for sale. This is especially true if you are planning to offer free postage in your listing but factor this cost into the product price.
However, bear in mind that asking for too much postage can discourage buyers. There are several things that you can do to make the cost less of a factor. For example, you might want to offer free postage for larger orders, or when the customer has purchased multiple items from you. You could offer a postage cost discount for return buyers, which may help to encourage people to continue shopping with you. Another option is to allow buyers to choose from several levels of postage. This gives them a greater level of control and can make prices seem more acceptable.
Stay Flexible
Using all of the above information will make it easier for you to arrive at an estimated cost when you are selling luxury goods. Pricing all goods at the higher range of your estimate wherever possible will help you make the most profits while attracting customers with a higher price point. Avoid making common mistakes such as pricing your items too low. It is more likely that they are going to sell quickly.
Unless you are more concerned about making space in your home by selling unwanted items than you are about making a profit. Doing this could mean that you are missing out on a lot. Pricing items at a higher amount will allow you to see if this is acceptable to shoppers. Don’t forget that there is always the option of reducing your price to encourage the sale if you don’t get a lot of action for some time.
Pricing higher and then reducing the price can often encourage more buyers to purchase at the reduced price. Everybody loves a sale! Another option is to allow people to make offers. This will reduce the cost of slow-selling items and get a better idea of how much people are willing to pay. This sort of flexibility will make it easier for you to develop your pricing skills over time, and also help you get a better understanding of your target market. In the end, it will help you build a better relationship with your customers by giving them more control.
Selling luxury goods online can be an ideal way to make some extra money. Clear out the things you no longer need, and you could turn it into an easy and lucrative side hustle. Putting in the work to price the items that you sell effectively can help you maximize your profits.
