ECommerce startup Poshmark is branching out from used clothing to brand new goods.
The firm has announced partnerships with brands, including Style Mafia and Snob Essentials, that will put new wholesale items into the Poshmark marketplace for its most successful sellers to buy. Those sellers can then turn around and resell, on Poshmark or the eCommerce marketplace of their choice.
"It's been exciting to see women leave their full-time jobs and become full-time Posh sellers," Poshmark CEO Manish Chandra said in an interview. Chandra further noted that Poshmark's biggest sellers grab $500,000 in annual sales by independently finding wholesale, overseas and resale clothing.
The wholesale expansion comes along with the firm's creation of the Poshmark Fashion Entrepreneurs Fund, which beginning in January will donate 50 grants of $500 each to selected sellers to aid in them in the expansion of inventory.
Poshmark's expansion may also be key to differentiating the brand, as the online market for used clothing is becoming evermore crowded. Consumers looking for used clothing can check out eBay, ThredUp and the RealReal among many, many others. Poshmark is betting on an emerging class of merchants who are looking to sell beyond the confines of what their own closet can provide, and who are in need of inventory to make that happen. To that end, wholesale buying opportunities and small grants could be quite helpful.
Poshmark makes money off of a 20 percent commission on sales of at least $15 and a flat fee of $2.95 for sales under $15. About 95 percent of the sellers on the site are female, though Chandra says the marketplace plans to expand into children and men's items in the future.
