One night stay In 2016, Rachel Petersen woke up at 3 in the morning, trying to put her six-month-old daughter to bed. She was exhausted. In the morning, she will begin another 12-hour shift as a nurse at a hospital in Chattanooga, Tennessee. But more than fatigue, she felt herself overcome both anxiety and tension. She worked part-time at the hospital for seven years without a raise. Along with teaching at a local university, she makes $ 35,000 a year; Her husband made the same amount. Meanwhile, they have an older toddler who is starting to show signs of autism. As she sat on the rocking chair in the dark nursery, she glanced at Instagram on her phone where her eyes looked at the hashtag #resellerrevolution.
She’d seen post after post by women bragging about opening a thrift store for a profit. The women who hit her are independent and take control of their lives. Many of them are using a platform called Poshmark and tag their posts #girlboss and #poshboss. “I can’t wait to learn more,” she said. She fell into the rabbit hole, until two hours later, when she left to begin her shift at the hospital. That day, she took advantage of all her breaks to see more articles. She had a credit card to pay for and an idea flashed that her three giant boxes of clothes that didn’t fit well could be of any help.
After a few months of learning about designer brands and noting trends and prices on the website, she tried listing out her used items. She then started buying more clothes for sale from the nearby thrift stores. She is a natural one. A year later, she quit her two jobs and moved to work on Poshmark. In 2018, she generated $ 80,000 in revenue.
Petersen has stumbled on a growing trend. A few companies now help people sell their second-hand clothes online, but Poshmark, a San Francisco-based startup, is the largest among them. It has 60 million registered users, mostly women, living in most of the US zip codes. Some women claim to make dozens or even hundreds of thousands of dollars a year passed it.
When businessman Manish Chandra founded Poshmark in 2011, he envisioned the app as a marriage of Facebook and eBay – a shopping-oriented social network. Merchants on the app list their items in the “wardrobe” or digital storefront, and the look-and-share lists of Instagram and Pinterest posts. Echo is intentional. Women on the app “see each other as friends rather than customers”, according to one end Press Release, lead them to buy more from each other rather than from a stranger.
Application has grown rapidly. In May 2018, Poshmark said it had made a total payment of over $ 1 billion to its community of sellers; 16 months later, the number has doubled. The company was reported as valuable 1.25 billion dollars.
Poshmark’s secret to growth is that it doesn’t keep inventory. Other retail sites, such as ThredUp, Vestiaire Collective and The RealReal, buy second-hand clothing from consumers, then authenticate and resell. On Poshmark, users do all the work themselves – but in return, sellers can make more money on every item they sell. “We have built a highly decentralized logistics system where millions of sellers provide services, goods and inventory,” Chandra told me in an interview in early 2020. Poshmark holds 20 % of the selling price for everything over $ 15 and $ 2.95 for anything under $ 15. Buyers pay a flat shipping fee of $ 7.11 per order.
According to Tracy Sun, co-founder of Poshmark and senior vice president of new markets, the core goal has always been “enabling a whole new generation of sellers to start businesses and thrive.” . In Poshmark television advisementwomen said they paid for the family vacation, a car, and wedding with the app, and Poshmark provided it. “Start-up Fund” for women to buy inventory.