Frequently Asked Questions

Start simple: Source items from thrift stores, garage sales, or your own closet. You don't need inventory to begin—start with what you have.

Pick a beginner-friendly platform: Mercari and Poshmark are easiest to start. eBay offers the most reach but has a steeper learning curve.

Learn to price: Search "sold" listings to see what similar items actually sell for. Price competitively when starting to build feedback.

Reinvest profits: Use early earnings to buy more inventory. Scale gradually as you learn what sells.

Popular high-margin categories include:

• Vintage clothing - 80s/90s brands, band tees, sportswear
• Designer/luxury - Authenticated bags, shoes, accessories
• Sneakers - Jordan, Nike Dunks, limited releases
• Video games - Retro games, sealed copies, rare titles
• Trading cards - Pokemon, sports cards, MTG
• Electronics - Apple products, gaming consoles, audio equipment

The best niche is one you already know. Your expertise lets you spot underpriced items others miss.

You can start with $0 by selling items you already own. Many successful resellers started by decluttering their closets.

$50-100 is enough to start sourcing at thrift stores. Focus on items you can triple your money on.

$500+ lets you buy in bulk at estate sales or liquidation. More capital = faster scaling, but it's not required.

Start small, learn the ropes, and scale with profits. Don't go into debt for inventory.

Income varies wildly based on time, niche, and effort:

• Casual/hobby: $200-500/month (5-10 hrs/week)
• Side hustle: $500-2,000/month (15-25 hrs/week)
• Part-time: $2,000-4,000/month (25-35 hrs/week)
• Full-time: $50,000-150,000+/year

Top resellers earn $200,000+ annually, but that requires significant time, expertise, and capital investment.

Match the platform to your items:

• eBay: Best for electronics, collectibles, hard goods, variety
• Poshmark: Fashion, shoes, accessories (20% fee but easy)
• Mercari: General items, beginner-friendly (10% fee)
• Depop: Trendy/vintage fashion, Gen-Z audience
• Facebook Marketplace: Local, large items, furniture
• Grailed/StockX/GOAT: Streetwear and sneakers

Pro tip: Cross-list on multiple platforms to maximize exposure.

• eBay: ~12.9% final value fee + $0.30 payment processing
• Poshmark: 20% (or flat $2.95 under $15)
• Mercari: 10% + 2.9% + $0.50 payment processing
• Depop: 10% + payment processing
• Etsy: 6.5% + listing fees + payment processing
• Facebook Marketplace: 0% local, ~8% shipped

Use our Compare Tool to see fees side by side.

Research sold comparables ("comps"):

• On eBay, filter by "Sold Items" to see actual sale prices
• Check multiple platforms for price ranges
• Note condition differences that affect value

Pricing strategies:

• Price 10-20% above your target to leave room for offers
• Undercut competition slightly for faster sales
• Consider time value—sometimes a quick sale beats a slow nickel

Yes, technically all income is taxable. However, you're taxed on profit, not revenue. Track your costs!

The 1099-K threshold: Platforms report to IRS when you exceed $5,000 (2024). But you owe taxes even below this threshold.

Deductible expenses include:

• Cost of goods sold (what you paid for inventory)
• Shipping supplies and postage
• Platform fees
• Mileage for sourcing (67¢/mile in 2024)
• Home office, equipment, subscriptions

Consult a tax professional for personalized advice.

It depends on your state and volume. Many casual sellers don't need one initially.

Consider forming an LLC when:

• You're making consistent income ($10k+/year)
• You want liability protection
• You want to separate personal and business finances
• You want a resale certificate for tax-free sourcing

A resale certificate (sales tax permit) lets you buy inventory without paying sales tax, since you'll collect it when you sell.

Good news: Usually no. Thanks to Marketplace Facilitator Laws, platforms like eBay, Poshmark, Mercari, and Amazon collect and remit sales tax for you in most states.

You may need to collect if:

• Selling in-person at flea markets or craft fairs
• Selling through your own website
• Using platforms that don't collect (some local apps)

Check your state's rules and the specific platform's policies.

• Thrift stores: Goodwill, Salvation Army, Savers, local thrifts
• Garage/yard sales: Best prices, early bird gets the deals
• Estate sales: Higher quality, often negotiable on last day
• Auctions: Live and online (estatesales.net, auctionzip.com)
• Liquidation: Pallets and lots (liquidation.com, BULQ)
• Retail arbitrage: Clearance sections at retail stores
• Online arbitrage: Deals on Amazon, Walmart, etc.

Look for:

• Brands you recognize as valuable
• Items in excellent condition
• Complete sets (all pieces, original box)
• Vintage items (20+ years old)
• Limited editions or discontinued items

Check before buying:

• Search eBay sold listings on your phone
• Check for damage, stains, missing parts
• Verify authenticity on luxury items
• Calculate if profit margin is worth your time

Under 1 lb: USPS First Class (starts ~$4)

1-5 lbs: USPS Priority Mail or Pirate Ship rates

5+ lbs: Compare UPS Ground, FedEx, USPS Priority

Pro tips:

• Use Pirate Ship for best USPS/UPS rates (free)
• Get free Priority boxes from USPS.com
• Use poly mailers instead of boxes when possible
• Dimensional weight matters—pack small!

• Free: USPS Priority boxes (usps.com), recycled boxes
• Cheap: Dollar Tree, Walmart, Amazon bulk packs
• Bulk: Uline, SupplyHut, EcoPackables

Save boxes from your own online orders. Free is the best price!