From hanger to hustle: How to turn your closet into cash

Jun 12, 2025

MYRTLE BEACH, S.C. (WMBF) - Whether you’re trying to be more sustainable with your fashion choices or you’re among the 62% of consumers worried that tariffs and trade policies will drive up apparel prices, more people than ever are turning to second-hand shopping.

However, the resale and consignment market isn’t just a way to save money; it can also be a way to make money.

According to a recent report by ThredUp, the global secondhand apparel market is expected to reach $367 billion by 2029, indicating a growth rate of two and a half times faster than the overall global apparel market.

So, if you have unworn clothing, accessories, or other items just hanging up and collecting dust, you’re already sitting on potential profits.

By day, 28-year-old Alex Mahl is excelling in her career as an office manager at a law firm.

But at night, she goes live on social media to sell clothing, handbags and other accessories live to her 225,000+ followers, or handling consignment for celebrities, all through her favorite resale platform: Poshmark.

And business is booming.

“I sell a gross of $15,000 a month,” she revealed.

But her journey started with a much simpler goal.

At 16, when her parents told her to clean out her closet before a move, Mahl realized she was sitting on a goldmine.

“I had expensive things,” she explained. “I worked in a boutique in high school, and I was like, ‘I don’t want to just donate this stuff. I want to try to make some money.”

She started doing research about where she could sell her clothing and decided she wanted to use a platform that was cell phone-friendly, and ultimately came upon Poshmark.

She downloaded the app, listed a few items and quickly saw results.

“As they were being uploaded, they were selling. I was like, ‘Wow! What else can I get rid of?’ So, I started going through my closet and pulling out things,” Mahl said. “And that day I sold like $500 worth of stuff.”

If you ever find yourself going through a closet full of clothing, yet always up telling yourself, “I have nothing to wear,” you’re not alone.

A 2018 study found the average American hadn’t worn 82% of their wardrobe in the past year. That means someone who owns 200 items only wears about 36 of those items.

And, according to a 2025 Resale Report on Circularity from TheRealReal, the average American only wears a item seven times before discarding it.

“Everyone has something to sell. I don’t care what anyone says,” Mahl said. “You have 9,000 pairs of jeans, get rid of 5.”

If you’re still having trouble choosing which items you want to list for sale, Mahl shared this simple advice.

“If it’s something you’d be excited to see in TJ Maxx or Marshalls— upload it,” she said.

Then, decide how you want to sell your items.

Research local consignment shops in your area. Or look at places like Plato’s Closet, Clothes Mentor and Style Encore, which pay cash on the spot for accepted items.

Plato’s Closet specializes in gently used clothing and accessories for teens and young adults.

Clothes Mentor focuses on women’s clothing, including name brands and designer items. It also caters to a broader age range.

Style Encore is geared toward individuals aged 30 and above, featuring more sophisticated styles, business casual attire, and high-end designer items.

Platforms like Poshmark, Mercari, eBay, Depop, ThredUp, and The RealReal are some of the most popular digital resale options, according to Vogue.

If you have high-end or luxury items to sell, Vestaire Collective, ThredUp, and The RealReal are likely your best options to reach your target audience.

The RealReal even offers a service where sellers can book an in-home concierge appointment with one of its luxury managers to review their closet and help curate and sell their items through the company’s website.

If vintage clothing or handmade crafts, accessories, and home goods are your forte, Etsy is likely the platform for you.

If you’re looking to get rid of a wide variety of items from your home, ranging from household goods, furniture, electronics, even vehicles and more, OfferUp, Letgo, Facebook Marketplace, or Ebay may be your platform of choice.

Decluttr might be an ideal option if your closet is full of used technology, such as phones, CDs, DVDs, games, tablets, and video game consoles, that you’re looking to sell.

Once you’ve chosen a resale platform, it’s time to photograph and describe your items.

“Make sure you upload the front, the back, the brand tag, the fabric tag, and any flaws,” Mahl explained. “Think like a buyer. I want to know 3 things: what’s the condition, what are the measurements, and are there any flaws? Really that’s it.”

According to ThredUp’s 2025 Resale Report, these are the top 20 “Best Brands in Resale:”

However, Mahl said your overall success as a reseller usually depends less on brand names and more on what’s trending right now.

“Black-and-white polka dots and red are trending right now,” she said. “So, even if it’s not a [well-known] brand and you upload it, people are going to buy it because it’s on the runway.”

And don’t be discouraged if your items are not brand new with tags or in mint condition. Buyers will often still purchase items with flaws or needed repairs

“Even when things have holes, people will say, ‘I’m going to get this fixed, can you go down a little on price?’ And I’m always like, ‘Yes, of course!” Mahl explained. “Because I’m not fixing it, and I don’t have the time to fix it, I want to get rid of it and make a few bucks.”

However, in situations like this, she said sellers must be forthcoming in the listing about the condition, or you risk receiving a low rating from that buyer and having to do a return since the item was not as described.

Here’s another one of Mahl’s top pro tips: always price your items 30-40% higher than your target sale price.

“Let’s just say I wanted to get $25 for my item. I’m listing it for $40 because someone is going to offer me $25 to $30, whereas if I would have listed it for $25, they’re offering me 15,” she explained.

While she had seen success using Poshmark’s traditional sale features, Mahl said her profits as a clothing reseller skyrocketed once she started doing live sales, which Poshmark calls “Posh Shows.”

“When Poshmark came out with live selling, that’s really where the big bucks were being made,” she said. “I casually started a live show just to see what could come from it. And I sold out my first show. Sold out all 50 items.”

Not all resale platforms offer a live sale component, but Poshmark, Depop, Mercari and Etsy all do allow live selling events.

So, how does live selling work?

“The best way to explain it is it’s eBay bidding, but in real time,” Mahl said. “I can hold up a pair of jeans and show it and explain it and then I’m going to say, ‘OK now I’m going to run this item for $25 for 30 seconds,’ and if you’re interested, or multiple people are interested, they can bid and it will sell right before their eyes.”

Not only are resellers going live on the app to feature their listings, but when it comes to “Posh Shows,” they can sell up to 50 items per session and have an opportunity to communicate with buyers and potentially boost their chances of making a sale.

“Live selling is great because you have the chance to ask the seller in real time, ‘What’s the condition? Are there any flaws? What are the measurements?’” Mahl shared. “These things are important when it comes to reselling.”

Before you get carried away with seeing more dollar signs with each sold item, there is one thing you need to keep in mind: tax liability.

Whether you treat your sales as a hobby or a business can impact your tax obligations and deductions.

If your gross sales exceed $2,500 in 2025, resale platforms will send you, and the IRS, a 1099-K tax form. But depending on your state, the reporting threshold may be even lower.

Make sure you do your research to understand any potential tax obligations and plan ahead.

With each sale you make, Mahl advised that you should keep Uncle Sam in mind.

“Put at least 20% of that sale aside for tax payment. Best case scenario is you’re not going to pay it all, but at least when you get a $20,000 tax bill, it’s not a shock to you at the end of the year.”

Where there is money to be made or exchanged, scammers are almost always lurking.

Mahl warned that scammers are out there on resale platforms and they are known to target new sellers.

Her advice is to never share personal information or agree to take transactions off the platform, even if their messages or requests seem innocent.

“If anyone ever asks you to email them or text them [because] the photos are a little fuzzy and it’s not coming up clear on their phone, that’s a scam. Never go off the app,” Mahl warned.

Always ensure that you read the terms of service, community guidelines, and return policy for your chosen resale platform. Look into whether it offers buyer and seller protection and familiarize yourself with the rules, code of conduct, and other important info to give yourself the best shot at selling and buying safely.

Then, start turning those unused items hanging in your closet into cash.

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