Is reselling used clothing profitable?

Growing Market Demand

The resale clothing industry is expanding quickly. In the U.S., secondhand apparel sales reached $43 billion in 2023, up from about $23 billion in 2018. This growth is roughly seven times faster than traditional retail clothing.

Globally, secondhand clothing sales exceeded $197 billion in 2023 and are projected to reach $350 billion by 2028, growing at double-digit rates. Economic pressures and sustainability trends are driving over 50% of consumers toward resale channels to save money.

Strong Margin Potential

Resellers often see 50–80% gross margins, much higher than traditional retail’s 30–50% range.

Example: buying a dress for $5 and selling it for $25 can result in around $15 net profit after fees and shipping. That’s roughly a 5× return on cost.

“Good” profit margins in the resale space typically range from 10% to 50%, depending on sourcing methods, pricing, and overall business efficiency.

Challenges to Consider

While resale can be profitable, it’s not passive income—especially at first.

Time and labor: Sourcing, cleaning, photographing, listing, and shipping take significant effort. Beginners often see modest per-item profits until they streamline operations.
Unsold inventory risk: Capital can get tied up in items that don’t sell. Success depends on sourcing brands and styles with high sell-through rates.
Platform and fulfillment costs: Marketplaces like eBay or Poshmark typically take 10–20% fees. Offering free shipping can also reduce margins.

Real-World Examples

One hobbyist sold 474 items in her first year, generating about $14,000 in revenue and $8,700 in profit. She credits careful sourcing and learning from the resale community as key factors.

On the other end, some sellers have scaled into full-time operations, generating up to $25,000/month by selling high volumes of low-cost inventory through live-sale platforms.

Tips to Maximize Profitability

Strategy	Impact on Profitability
Source low-cost, high-demand items	Boosts gross margins and reduces risk of unsold stock
Optimize platform and shipping fees	Limits overhead costs
Streamline operations	Increases listings per hour and effective hourly profit
Leverage market trends	Targets brands/styles with high sell-through, like Lululemon or Patagonia

Key Takeaways

The U.S. secondhand apparel market hit $43 billion in 2023 and is growing much faster than traditional retail.
Many resellers average 50–80% gross margins when sourcing wisely and pricing effectively.
Scaling requires time, strategy, and process efficiency, not just stock.
The biggest risk is unsold inventory, but when quality meets demand, resale can be a profitable, scalable business.

What profit margins can I expect when reselling used clothing?

Most resellers achieve gross margins between 50–80% by sourcing low-cost inventory and selling at typical online prices. For example, NuSource’s curated bundles average \$4 per item and can sell for \$14–\$20, helping sellers hit these margin targets.

How do marketplace fees impact my resale profits?

Marketplace fees typically range from 10–20%. Poshmark charges 20% on orders over $15 and $2.95 on orders under $15. Building these fees into your pricing or charging shipping separately ensures your margins stay intact.

Why is smart sourcing essential for resale profitability?

Smart sourcing reduces upfront cost and unsold inventory risk. Buying brand-sorted packs, such as those offered by NuSource ensures access to high-demand labels, improving sell-through rates and margins.

What inventory selection strategies minimize risk?

Focus on brands with proven resale value (e.g., Patagonia, Lululemon) and test with small starter lots before scaling. NuSource’s performance dashboard lets you analyze which SKUs sell fastest to guide buying decisions.

Can reselling used clothing become a full-time business?

Absolutely—by optimizing sourcing, minimizing fees, and automating workflows, many sellers scale to full-time operations. Reinvest profits into inventory, marketing, and fulfillment to grow multi-channel revenue.

Where can I find curated wholesale clothing bundles?

NuSource.io offers curated and custom-sorted wholesale packs, tarter boxes, brand-specific assortments, and pallets designed to help resellers achieve target margins and streamline sourcing.