Thrift vintage online stores are all the rage these days, as men and women embrace boho styles from decades ago. Whether they are looking for bell-bottom jeans, 60s style dresses, or graphic t-shirts, people flock to thrift stores to find something new in what was once considered old. While many online thrift vintage stores emphasize the fashion risks that stores like this enhance and enable, others enjoy the bargains they might find during a successful search. But what if you are not satisfied with being a customer and want to run a thrift store? The best way to begin is to emulate companies such as Poshmark and eliminate early costs by establishing your business online.
If this all sounds exciting but overly challenging—it is not! We’ve organized the process into several easy steps in order to make starting an online thrift store business as easy and stress-free as possible. We also have an article on how to start a business. Keep on reading to begin your thrift store journey and contact us for a free consultation for help starting a business!
Douglas Wade, Attorney
1) What is your thrift vintage niche?
Have you visited a thrift store before? If so, you will probably agree that many of them are stocked with an abundance of clothing but appear to have no semblance of order. Often, you find a sweater you can’t live without under an enormous box of old corduroys. Thrift stores sometimes seem so full of things that you do not want that it is hard to find the things you do.
So, think differently about your online store. How can you eliminate the chaos that alienates some customers and instill a sense of order and ease?
In order to do this, we suggest focusing on one item or a series of items. If the goal of any store is to not only help the customers find what they have been searching for but to add value and efficiency to their experience, this is one way to do that. Instead of rummaging through piles of moth-bitten socks, they will be clicking on product details. This is the idea of arranging a curated collection for your new store.
The question for the savvy thrift store owner is: what do they want to focus on? When you carve out a niche, you select one product—or a small series of related products—to present to your customers. We suggest sticking with the “less is more” mantra as you begin your store and then grow your business. If possible, choose an article of clothing that you like and that you are familiar with. This will eliminate some of the research from your to-do list. An example of this might be women’s shoes. Consider how you can zero in on that concept: dressy or casual, or all-inclusive? Retro, modern, or both? The more specific you can get, the better. Will boots be included? Do you have a plan to branch out to men’s shoes in the future? We could go on and on.
Lastly, do a little market research. Target the clothing stores and thrift stores in your geographical location, as well as online, but in your niche. If you are focusing on women’s shoes with a retro angle to start, for example: where are women buying those locally? Nationally? Are they buying them in brick-and-mortar stores or online, or both? Importantly, what are the various price points for these types of shoes, and can you come to some sort of consensus regarding price? While this may seem like a lot of research, it will help strengthen your idea as you begin and also provide a pathway for growth. Doing early market research is invaluable and can also help eliminate problems for your new online thrift biz down the road.
2) Brands Matter – Become Your Brand
Remember when eBay revolutionized online sales? Part of their success can be attributed to a progressive idea, of course. But part of Ebay’s magnetism rested in the brand that they quickly established and still successfully rely on to this day. Currently, Poshmark is an industry leader, having established what they refer to as a “social marketplace for secondhand style.” Their approach is inventive, intelligent, and cutting edge, and several companies have followed suit, among them Thredup, Vinted, and Tradesy. Yet, Poshmark reigns supreme, in part due to its established brand.
At this point in our list, you have chosen a product you wish to sell. Now, let’s develop a brand idea that you can continue to build, an idea that will provide room for growth and target the correct audience for your online store. There are several ways to think about this, and many associate brands only with names and logos. Nike, for example, is a creative and easy-to-remember name with a simple, memorable logo: the “swoosh.” However, your brand is more than these things. It includes your overall tone and vibe, your customer base, your messaging, and your particular style.
Much like conducting market research, asking yourself and your company questions can lead to breakthroughs. So, here we go:
- What do you consider your unique selling point or “USP?” Why?
- Who is your target audience, and how would you describe their interests and overall lifestyle? What are their average age and predominant gender? What are their preferences? Make this simple: how would you describe the customer who loves what you do and cannot wait to come back for more vintage women’s shoes?
- How will the target audience engage with your store? In other words: do they normally shop in-person, online, through social media, or through a mix of all of these?
These answers will provide a brief estimated sketch of your ideal customer. Now, it is time to find them!
Choose a Name for Your New Brand
Do not overlook this important step, and reserve some time and mental energy for this one. Picking out a name for your brand is important and definitely can be a challenge. As you pare down your list of possible names, remember that your brand is signified by your name, so, therefore, it should resonate. A great name choice is brief, striking, and stands out from the rest. Consider how you want to be known by your audience and the nature of your audience, and this might help. You can also play off of concepts, such as the nature of your product or your own first name or surname. Or combine the two concepts, as in “Vanessa’s Vintage Shoes.”
Once you have a shortlist, get in touch with California’s business filing agency to make sure there are no other businesses that have the same name. You can also search through online databases to find out if your idea for a name has been trademarked nationally and check out similar stores through web searches and social media queries. We’ll get into registering your company a bit later in this list, but we recommend securing your social media handles and domain name as soon as you decide on a name.
Tip: We recommend keeping at least three names on your list at all times. That way, if your first choice does not work out, you have a backup.
Promotion, advertising, and marketing will also be later on the list, but once your brand is fully realized, you can immediately start posting images online. Create a buzz and get people talking about the intriguing images you post. If the images are mysterious yet synonymous with the brand’s aesthetic you want to create, all the better. This way, when your shop officially opens, you will already have begun to pace the way for success.
3) License Your Business
Here is a quick run-down on business licenses. You will probably need at least one type of license. However, the specific licenses you need depend on many factors, including where your business is based, what type of business it is, the size of your business, the industry, and many other variables. This means that as specific as this list is intended to be, it is difficult to provide general licensing instructions, and you will probably need to rely on your sharp research skills to find out exactly what is needed. Speaking to a licensed attorney can also help.
However, we can provide a brief overview. In the US, the rules and regulations regarding business licensing fluctuate with the state and sometimes even with the county you are based. For example, in California, online clothing sellers must first obtain a seller’s permit through the California Board of Equalization, not to mention pay sales tax on the thrift threads they sell. In any case, when you do need to apply for the appropriate license, you should have these things ready:
- A sales tax license (get this from your state business agency)
- Your company structure (for ex: are you running an LLC, a sole proprietorship, or an alternative?)
- A record of your company’s activity. Be detailed in your records because you may be asked questions about your transactions and even your projections and goals.
How do you actually obtain a license? This is, like so many other things, up to the state where you will do business. If you’re in California or Los Angeles, we have an article on how to get a business license in Los Angeles. While we cannot go into depth on business license, we do recommend that you apply for a license for your company as soon as possible, even if you find out that you are not currently registering enough profit to need one. This way, you will be all set as your business grows. Generally, you will probably need to head to city hall to finalize some documents, and even if your business is all-online, you will need to appear in person. Right now, online fashion is not federally regulated as, for example, alcohol is, so once you are licensed in your state and have filled out the right forms and, if necessary, been fingerprinted, then you are ready to open your store. This leads us to…
4) Set Up Shop Early
In order to launch your shop, it is fairly obvious that you need products to sell. Sometimes, entrepreneurs start with a small, curated list of products in order to test the waters, and then they let the market, and their customers, dictate which direction they should go in. However, even if you are not quite ready to sell products, visualizing how you will sell them and making a comprehensive plan are both great ideas. You have a few options:
A) Ecommerce Platforms
Ecommerce platforms are efficient, time-saving tools that are easy to set up and allow for business growth. They also allow you to customize your store with the use of a template, and you do not have to know anything about web design, either. The major pitfall of tools such as Squarespace is that you will need to add their monthly fee to your bills. However, overall, they are worth it, especially if you are not web designed and have not budgeted for one.
Use a platform that provides design options, such as Squarespace. Squarespace and its many competitors (Weebly, Wix, etc.) provide an ideal combination of customization and built-in features. Squarespace, for example, features innovative web designs to choose from that you can sync with your brand. Squarespace also has stylish templates, which are great for thrift stores, and a clean and simple management system through which to sell your products. Plus, Squarespace provides the ability to sell gift cards and give/accept donations. Sounds good, right?
In addition to Squarespace, which syncs well with an online thrift store due to its fashion-based templates, Wix is also a great investment. If you have a small inventory and are worried about spending too much, Wix has options that might interest you. Our advice: shop around and see who is currently offering the best deal to small online businesses right now. Do not be afraid to ask questions and do a trial run before committing to a monthly feel either.
B) Self-Hosted Platforms
Self-hosted platforms are for those who have the time and the tech skills to build a site with a platform such as WordPress, which allows for more freedom and customization. However, this can prove challenging and time-consuming, and in order to truly take advantage of the customization options, you need to be able to code. So, if you are not a proficient web designer or coder, this might not be the option for you. Even if it does save you some money upfront, it will undoubtedly sap some of your time unless your coding skills are extensive.
C) Marketplace Selling
Many online vendors, especially when first starting out, use Amazon and/or eBay. These tried-and-true selling choices are trustworthy and provide a platform that instantly places your products in front of the masses. Selling on these sites is also easy to set up, and it is also convenient to collect your payments. Since eBay and Amazon deal with so many sellers on a daily basis, the entire process should remain smooth. However, numerous sellers translate to strong competition, and you need to pay back Amazon and eBay on each purchase—this is known as a “seller’s fee.”
Additionally, many artists and designers swear by Etsy, which has gained immense popularity of late. Yet the same drawbacks exist with Etsy as well. The bottom line is that these services might help you test our products, but if you are serious about your online thrift store business, and want to make it a long-term, legitimate company, then Etsy and the like will not provide the brand-building options or ability to grow that you need to take your business to the next level.
Tip: If you are interested in these marketplaces but are also aware that you need your own website, there is an option for you. Why not integrate the market, let’s say Amazon, into your site? Selling across both platforms will raise your visibility and, ideally, your sales.
5) Source Your Vintage Products
Next, let’s discuss where you will obtain your clothing and other stock and why this is a task you should really pay close attention to. We recommend not spending too much money at first since you will not have a sense of what items sell well, as opposed to those that do not. Rather, start off with a smaller-sized, manageable collection of items.
Where can you find clothes or products to sell at your online thrift store? Here are some options, but feel free to pick and choose based on what fits your budget—and your new product line!
- Garage Sales/Yard Sales
- eBay
- Estate Sales
- Other Thrift Stores
- Flea Markets
- Consignment Stores
- Craigslist
- Amazon (Used Products are plentiful and usually in solid condition)
- Poshmark
- Clearance Sales
Tip:In hip urban areas, thrift stores are popular and plentiful. With that trendiness, however, comes a hike in prices. Why not find some consignment shops and thrift stores in less popular areas or neighborhoods, and do some stock-building there? You will make up for the travel time by saving money and ideally acquiring products that you can sell for increased revenue.
When you find the perfect item, it can be difficult not to buy it immediately. You may already be able to see it up on your website, perfectly photographed and representative of the style and aesthetics that make your brand unique. However, before you spend your hard-earned funds on any clothing for your online thrift store, take a minute or two to check the items out. Here is a quick list of what you should consider.
A) Browse Comparable Items and Prices
Where would this item fit into your current product line, and what are the prices of similar items online. Do you consider this a fair price, and will the selling price make the price you are buying it for worth it (do not go into the red on that used pair of pumps!)
B) Check Out the Wear and Tear
This is an easy one, but be sure to check for dents, stains, cracks, or holes. A few small issues may be conquered by cleaning, but leave the damaged items covered in chocolate or wine stains for the other customers.
C) Consult the Labels
By using the internet, you can find the difference in cost and value between a pair of 1970s Ray-Bans instead of a similar pair from 2020. Also, be on the lookout for cheap knockoffs. This is where checking the tags and labels comes in handy and running some internet checks.
It feels good to have your first real “collection” all set and ready to go. If you have purchased clothes, be sure to wash them—but be careful since they may be old, weathered, or delicate. Do not ruin the vintage “look” with your super-efficient detergent! If you are unsure of the cleaning process, that is what the web is for. Once your purchases are clean and looking good, you are ready for the next step.
6) Find a Place to Store Your Stock
The vision for your new store is getting clearer, so let’s keep going. Now that you have the curated collection you have always dreamed of, what do you do with it?
Storing your products is an important step. As you first start out, and when your collection is relatively small, you should be able to find space in a spare room or closet. However, you need to keep one eye on the future and consider the eventual growth of your business. For many online retailers, especially those who start their companies from home, a storage unit is a more permanent yet accessible option. However, this could be an expensive option and yet another bill to add to your monthly tally, depending on where you live. If you do not have the budget for this or live in a city or urban area where prices for renting storage are exorbitant, then don’t worry; there are other options.
Creating a Storage System for Your Thrift Store
Even for a small company that is just starting out, coming up with a comprehensive system for tracking and storing your product line is essential and will save much money and time later on in your career. First, how is your product line categorized on your site? However you have it arranged and divided (whether by sizes, seasons, or types of sex), use this scheme when you store your products. When you get a series of orders (hooray!), it will be easy to take the correct items out of storage and get them in the mail quickly.
You will also want to spend some time coming up with a system for tracking your items and inventory. All eCommerce companies rely on this type of tracking since it produces valuable data that is relevant to estimating your business performance. Perhaps more importantly, a systematic approach to tracking sold products means that you will never “sell” something online that is currently out of stock.
Remember those eCommerce platforms we mentioned? Many of those systems come with built-in management tools for tracking inventory and keeping track of sales.
7) Create Photo Magic
The pieces are falling into place. You have created the systems and infrastructure in order to lay the groundwork for a successful online venture, and you have done all of your homework. Currently, you have a beautiful collection of curated clothing (or related items, such as shoes) that will absolutely find some eager buyers.
These days, no product line is complete without flattering pictures that can be posted on your website and all of your social media. We cannot say this enough: do not rush the photos because you are so excited to get your business up and running. With careful preparation, timing, and a little research, you should be able to increase your exposure and sales by following these guidelines.
A) You Do Not Need Fancy Cameras or Equipment
Many thrift store entrepreneurs overspend on lenses or backgrounds in order to get their fashion shots “just so.” This is a waste of the money you should be budgeting for something else or saving. You will be in business without the zoom lens if you take your time and produce quality photos of a great collection. Remember, it is quality, not quantity, and good photos are only as good as the collection itself. Also: resist the urge to cut corners. We have all heard of the customer who receives a sweater that looks absolutely nothing like the picture. Making an average product look excellent in the photo will quickly doom your business credibility.
B) Let the Light In
Great shots rely on excellent lighting. This does not mean that you need to “create” anything; it just means that you should be conscious of the light in your photos. Natural light works very well, as does an abundance of lights that are close to the subject. Let your customers see the details of the collection you have worked so hard putting together. A well-lit product makes for a great shot. Natural light is best, but failing that, just put on as many lights as possible and keep them as close as possible to the product as you don’t distort the shape. While some amateur photographers think that the use of a flash makes up for poor lighting, let us be the first to tell you that it does not. Keep the flash off!
C) All Angles Are Good Angles
Prospective customers want to be able to see every side, angle, and detail. So go ahead, show those imperfections, and do not worry about the close-ups. People who are shopping for vintage clothing and thrift store products are used to imperfections—they may even like the rip in the jeans you are selling or the tattered skirt. Let them take a look and decide for themselves.
D) White Backgrounds are the Best Backgrounds
White, as a color, is not distracting, and it shows off the item you are selling. Pure white is the best option here. Why not pick up a big roll of white backdrop paper to use behind all of your photo subjects? The key here is a background that can only be described as “nothingness” and will keep the focus on your thrifty, nifty collection.
E) Editing Can Be the Enemy
We know that you love to edit pictures on Instagram and other socials, but over-editing and using filters will not distinguish or highlight your clothing or accessories. Instead, your colors will not match with products, and your customers could feel duped and review you poorly. Your pictures also might look unprofessional, as opposed to the hip and stylish vibe you were going for when you used a black-and-white filter and blurred the edges. Keep your process professional and traditional; your buyers will thank you.
Tip: One of the best ways to market clothing is to show how it looks on a model. We know you do not have the budget for models—just use your friends or family, and make it a fun get-together! If you promise them pizza and perhaps a free or discounted item, they will show up ready to model.
8) Set Prices for Your Collection
When you price your products, consider the costs that you have paid leading up to this point. For example, when you bring your car in to get fixed, you are not simply paying for new brakes, right? Instead, you are paying for the labor, the small devices around the breaks, taxes, and other fees. This is no different. You spend money on that distressed pair of leather boots that already have garnered 50 “likes” on Facebook; but you also need to include recorded and projected costs on things like shipping, cleaning, storing, packaging, fees you may pay per transaction, fixed costs such as to the platforms you are using, and more.
While many first-time sellers make the mistake of undervaluing their items, the opposite is also true. Overcharging in the name of earning revenue more quickly will sink your business. Awareness of both of these ceilings is key, so do some research into the prices other sellers have arrived at and how and the value of the products you are selling. Products too inexpensive can turn savvy buyers off because they think something is wrong with the product. Overcharging will simply make buyers pursue other options, of which there are a lot these days. The presence of social media makes these distinctions even more important because would-be buyers will quickly take to Yelp and Facebook to write about your business. You want good reviews, not negative testimonies!
Research the Competition
Selling in any capacity is a competition. Checking out the prices of items similar to your stock will give you a baseline for pricing. Keep your pricing scheme competitive, and make the “results” come down to the quality, rarity, and trendy appeal of your niche.
Be Aware of Worth and Value
Remember: check the labels of the items in your collection. Selling a product for less than it is worth is a common mistake, but it will have you kicking yourself when you count the money you could have earned.
9) Ship Your Items
Congratulations on making it this far! One of our last tasks here is of paramount importance: sending your products far and wide. Here are a few guidelines based on our experience with thrift store businesses in the past.
A) Flat Shipping or Free or Real-Time?
Free Shipping
First off, how much will you charge for shipping? We all enjoy free shipping, but it can be costly for small business owners. If you are not covering the cost of shipping for yourself with the cost of your items, you will find yourself in financial trouble. We advise setting some common conditions to go along with shipping, for example, a minimum value to order. Also, perhaps free shipping is only available in the country or state where you are based, depending on costs. You can also advertise with free shipping coupons or offer free shipping for the first order only. If your product line is great, many returning customers will not mind paying the shipping charge when they come back for more.
Real-Time Shipping
When you charge your customers for shipping in “real-time,” you are figuring out the shipping charges for an order based on your location and weight. FedEx and other carriers actually provide real-time shipping calculators. This means that each of your items, however, will have a varying shipping charge, and this can make things complex, especially if you struggle with organization. However, some website builders provide an automatic system for this, as long as you input the correct values. At this point in the process, it really depends on how much work you want to put into the shipping process instead of working on other facets of the new business.
Calculated shipping
Calculated shipping also requires some effort from the seller, but if your store sells large items with variable weights (furniture is a good example), this could be a nice option. Squarespace features a plan for this, and Etsy also offers an option that helps calculate shipping rates for USPS and FedEx, among others.
Flat Shipping
If you are looking for a simple shipping option, you have found it. Flat shipping simply requires sellers to calculate the approximate average price for shipping, then add this cost to every delivery. So when you see the phrase “standard shipping rates apply” on your website of choice, this popular option has been chosen. Sure, you might sacrifice some revenue on large orders, but one of the reasons this method is trusted is that for most sellers, things balance out, and you save time and aggravation.
Picking Up or Dropping Off?
While your company is small, it will not prove too taxing to drop off your shipments. However, as your online thrift store business grows and ideally flourishes, and the orders pour in, you may tire of the travel and lifting of boxes. Some carriers provide an option to pick up packages from your home or office, such as UPS, and when you are ready, this will be key to take advantage of, unless you really love the exercise.
If you are still working with a drop-off point, you should be allowed to choose a place that is near your home, office, or a storage area. As long as you are fine with it, completing your own drop-offs will save you money because fees increase when carriers have to continually come to you. Also, some website builders help with this process and include delivery options, shipping options, and pickup in the interface. One of these is Wix, so why not check them out if this sounds interesting?
There are several US shipping companies that work well with small companies:
- USPS
- FedEx
- UPS
- DHL
Packaging and Labels
If you are familiar with Poshmark, you will know that some sellers really go out of their way to package their vintage clothing. They include colored tissue paper, candy, trinkets, stickers, and even signed notes. While this can be tempting, start out simple so that you do not create unfair expectations since these can create undue pressure. Lightweight but protective packaging is essential in order to prevent customers from receiving damaged goods, which is always a recipe for disaster. If you are keen on branded packaging and want your deliveries to stand out, by all means, go for it! However, usually, it is best to wait until your brand is established.
When buying packaging, consider the size of your operation, and buy in bulk. Amazon works, but if you want to get a sense of what you are buying first, try an art store, stationery store, or even a dollar store.
10) Market Your Online Thrift Store Business
Without a comprehensive marketing plan, the masses may never get to experience your thrift store and browse and buy your carefully curated collection. Start working on your in-depth plan for marketing early, and you will see results. One important aspect of marketing is being aware of your site visitors, clicks, and overall visibility and performance. An analytics platform can be connected to your website easily, and Google Analytics is a good choice, though there are also other options.
What should you definitely include in your marketing plan? Stay tuned to find out.
A) Invest in a Marketing Strategy
Although you may not have the budget for this currently, we will start with a valuable idea that may come in handy a little further down the line. Marketing plans often go hand in hand with advertising, but they are different. Simply make a note that once your site is live and you are making sales, it will be a good idea to try out some pay-per-click ads or ads on sites such as Facebook or Instagram. As the business progresses and grows, you will know what items are selling well or which part of your curated collection has caught fire and is covered by your new customers. Items like that are great for paid ads. For now, simply make a note of this and wait until you have a budget for paid marketing ads.
B) Use Search Engine Optimization (SEO)
Many companies hire a separate SEO writer or SEO expert with the knowledge to use Google and other engines to your advantage. You’ve worked hard on your website and collection, so the goal here is to give your new and modern website the chance to be found. When someone enters “online thrift store” into Yahoo or Bing or Google, you want your site to pop up, right? Here are some things you can do to increase your visibility in the vast ocean of information that is on the internet.
- Add a blog and write interesting posts about the clothes you are selling, the industry, your experiences, or even the process of starting a business online. While you do not want to be too personal, your audience will enjoy your perspective. If you post regularly and hook a few people, they will come back often and browse through your merchandise.
- Try out a keyword tool (Google features a keyword planner, as do other sites and services). This will help you discover useful search terms in the fashion industry. Simply have the writer for your site include these terms, or if you are starting out as the writer, make sure these terms are included within your content. For example, if “vintage” and “distressed” are terms that bring in buyers, you can describe your black women’s boots as “vintage and distressed.”
- Try using an image compressor. This will ideally shrink down your images without sacrificing quality, and then your website will run faster. We’ve all visited websites that are slow to process our requests, and usually, this leads to us moving on to another faster and sleeker website.
C) Tap into Social Media’s Power
The cultural and economic power of social media cannot be underestimated. We would wager that you have purchased something over the last year that you first discovered on Instagram or another website. Let’s focus on Instagram for a moment since it is one of the most convenient and useful tools for purveyors of online fashion. Why? Instagram appeals to a younger crowd, and all eCommerce businesses want to bring in the young buyers who will, in turn, post about their purchases. This creates a chain of demand that will ideally help your business gain popularity quickly.
Before you open up shop, you should build up your Instagram. If you are not comfortable doing this, find help. Curate images and hashtags and make “friends” or follow similar stores. Instagram is a business-friendly networking tool that you must take advantage of, so build your buzz as you make your profile unique and memorable. The Instagram vibe of your online thrift company should fit the clothing and items, so if your stuff is edgy, then follow that aesthetic. If your store celebrates clothing for hiking, for example, then utilize beautiful photos of nature.
When you start selling, keep the posts coming. Showcase your new items and reveal some “behind the scenes” footage so that followers feel as though they are part of something. Also, keep the cycle going: ask followers to post, tag, and repost your stories. Use Instagram (and other social media sites) to inspire the masses and find new followers—which will translate to new buyers.
11) Starting An Online Thrift Store Business: A Recap
We hope that you are full of motivation and inspiration and perhaps a little nervous anticipation. You now have all of the information that you need to start an online thrift store, and the future is bright! Online fashion is a fairly new industry, so you are joining the boom at the right time. Better yet, it is one of the few new industries that are sustainable since you will be recycling clothing items for a great purpose. Perhaps take a second to process all of this information and then begin the process.
The ten guidelines for an online thrift store:
- Locate your niche, and do the research
- Become your brand
- License your business
- Set up Shop Early
- Source your products
- Store your stock
- Create photo magic
- Set prices
- Ship your items
- Use social media
We have written a checklist for starting a business. If you have any questions on how to start a home business, it may make sense to contact a California business attorney at the Nakase Wade law firm. At Nakase Wade, our attorneys have advised a number of new business owners regarding licensing and other issues, so take advantage of our free consultation today. Good luck in the world of online vintage fashion and thrift.