Does having more items get you more sales? Should you have fewer items with higher margin or more items with lower margins? Luckily there's an in between area and that's where I like to be.
2 Schools, 1 Goal
On the surface, there seems to be to groups that you can divide Poshmark sellers in.
1. Low Listings/High Margins
2. High Listings/Low Margins
I bring this up because there's a misconception about both sides that need to be addressed and it's really obvious because people talk about the two as if they're mutually exclusive.
No, just because you have few listings doesn't mean they're all high margins. This irks me so much because those who claim this are just assuming it is so. They would even argue that people are wasting their time with lower margin items. While it true that people have their own styles of doing things, I just don't appreciate people figuratively looking down on those with high listings and leaving sly comments on social media about it. Until they provide a transparent spreadsheet with stats that shows their sell-through rate, turnover rate, average cost and sourcing time cost, there's really no context to go off of. That's not to say everyone is snotty, that's just to say these individuals exist.
No, just because you have a lot of listings doesn't mean they're all low margins. While this may be true for a lot of people with a high listing count, this is not true for sellers like myself. I sell low ($5-$15), mid ($16-$50) and high ($51 and above) priced items and currently have about 6,400 listings with a healthy blend of all price points.
What I'm saying is its possible to have a lot of listings with a good blend of prices. Again, everyone has their own way of doing it, I just prefer to have a wider net to get more eyes on my closet. I'm not suggesting you do the same, this is just what works for me. I'm just more interested in having you look at it from both sides of the fence and not be so narrow-minded.
With that out the way, let's move onto the core of the post.
Stay in Your Lane
Having many items does should not mean you should be everywhere in terms of 1st and 2nd level categories. 1st level categories can be broken up into Women's, Men's and Kids. 2nd level is the general categories under the 1st category. I understand this is a little confusing since I just made up the names for these categories so here's a visual to help:
1st and 2nd Level Categories
3rd Level Category
What I mean by this is for you to pick items that you do best with, and trust me, nobody does best in every category. A quote I live by when it comes to strategy is by one of my favorite authors, Michael Porter. He says "The essence of strategy is choosing what not to do." In other words, stay in your lane!
By choosing what not to sell, I am able to buy items within my core competence no matter the price range. Put differently, I don't believe the topic of "Quantities of Listings" comes down to quantities, it comes down to knowing what category you're best at and sticking to. And when you find your strength area, buy a lot of items that fall within that area.
You Are What You List
Understand that what you list most of will be perceived as such to the customers. If your entire closet consists of nothing buy $15 and below items, don't be surprised when you attract nothing but bargain hunters that will always be asking for discounts. If you have a closet filled with $100 and above items, just know you'll be sitting around longer for a sale to happen. And just because you've been selling high priced items since you started, don't be afraid of trying the low or mid-level items. Believe me, those low priced items will come in clutch on slow days. That's where most of the bundles happen for me.
Why Do I Have So Many Listings?
We've finally reached the part that answers this post's title. The answer is BUNDLES!!! By having many items in your closet, again stick to your core competence, you're more likely to get a bundle sale. The biggest bundle I got to date was a 21 piece bundle! Now let me explain how I'm able to consistently get bundle sales. I'll only be using 1 Poshmark category (Dresses) to make my point. First, take a look at this chart:
This chart shows all the sizes that are under Dresses in Standard, Plus and Petite sizes. This doesn't include Juniors and Maternity. The number of all the sizes is 65 to save you the time counting. Let's just look at this realistically and assume you only carry 30 sizes out of 65. Let's also assume you have 200 active listings which I would consider a low listing number. Let's also assume all 30 sizes are evenly divided amongst the 200 listings which would round up to about 7 items per size. You can see why it's unlikely for a customer to bundle something when there are only 7 items available for them to choose from. Compound this with more categories, remember these are just dresses, while still using the 200 active listing number and your chances are even worse.
I think when someone says they have 200 items for customers to choose from, they forget that everyone has a size they wear that they really can't deviate from so realistically they only can choose from what you have in their size, not from your ENTIRE closet. Sounds obvious enough, but we sometimes forget to look at things from the perspective of the customer. If you don't have enough items of their size, you won't get the bundle, it's that simple. They're not going to gain weight or lose weight to fit into a piece, and they're definitely not going to reach out to you and request you add more things in their size.
Sure, you might get that single item sale but you're definitely missing out on the bundles. Remember, customers already paid a flat shipping cost and they're motivated to make that cost work in their favor by adding more items. If you don't have things for them to bundle, they will just buy that single item or just move on altogether. This brings me up to my next point, low listings with low price points.
Low Listings/Low Prices
Don't EVER find your self in this category. This is the worst situation to be in, having a low number of active listings that are all low price.
If a customer finds only 1 item they like from your closet that is let us say $10, and the shipping is $6.79, it's highly unlikely that the sale might go through because the shipping is 67% of the item's cost! And because you had a low quantity of listings, they are unlikely to find enough items they like. This would result in them just ghosting on the bundle they started that only contains 1 item.
But if this is your style, more power to you.
To Wrap Up
Because this is getting a little long and I don't want to lose your attention, let's go over my main points.
1. Find your category
2. Get a lot of items with a good blend of price points in those categories
3. Bundles only happen if you have multiple items in their size
4. Do not have a closet that has a low number of listings with items that are mostly or all low prices
Again, if you sell things that don't have sizes such as jewelry, none of this matters to you. But for most of us, I hope you liked this one.