Designer handbags are something most women envy.
They are also one of the few things in life some will justify spending a month’s pay to get hold of. Fair enough.
I personally don’t share the same desire for these products since I’m a guy, but I do know how to make money selling products online. And in this article, I’ll shed some light on the various ways you can make money selling luxury handbags. Some methods are more beginner friendly than others, and some will pay much better than others.
Ready? Awesome. Let’s dive in…
Sell Through An Online Marketplace
Perhaps the most obvious and common method of selling handbags online is through some kind of online marketplace such as eBay.
On the plus side, eBay is a very well known site with lots of potential buyers, so items often sell quickly.
The downside to this method is that eBay is quite a broad site with many different products being sold, which means it can be a tough gig trying to sell the more top end brands. There is also a lot of competition on eBay so even if you do find the right kind of product for their audience, it could require a lot of hustling to get into profit. You will likely be starting from scratch as a seller, so it can take time to build your reputation and demand the price you want.
The idea is to do your research to see what other people are selling within eBay and get a gauge on whether or not your handbag will do well, and figure out what kind of price you can demand for your item.
If you don’t want to sell used goods, you could also find a wholesale supplier of the right type of bag for this audience and sell those. Make sure you run the numbers carefully to ensure you can make a profit after all of your costs, including shipping.
Sell Your Pre-Loved Handbag Through a Specialty Site
There are many specialty websites that allow people to buy and sell all kinds of designer handbags from rare heritage pieces, to brand new trending designs and pre-loved bags. Given these sites have established an existing group of buyers and have systems in place to make your life easier, this can be a great way to go.
Here are a few example sites worth looking into in this space…
This site boasts an audience of over 4 million fashion lovers around the globe. They allow you to sell your used handbags using a very simple system.
Step 1: Take a picture of the item and fill out a sellers form
Step 2: Their team checks the details and approves the item to be listed on their website for sale. When it sells, you ship it to them for free.
Step 3: They check the item to make sure it’s legit, and once approved, they ship it to the customer and you get paid.
When it’s all said and done, you will receive an average of around 75% of the final sale price which isn’t bad considering they have are letting you tap into their customer base, and they make everything super simple.
This is another popular website that specializes in selling used luxury handbags, but the difference with this site is that they pay you directly for the item. There is no waiting for the item to be sold.
You simply take a picture of your item and follow the prompts on their site, if they like the item and you agree on a price, they will pick it up within the US or pay for it to be shipped to them. That’s it!
This is an interesting website that decided to take a unique approach.
As a customer, you can either rent a handbag, or buy a new/ used one.
As a seller, you have two options: sell your handbag to the company directly or sell it on a consignment basis.
With the direct selling option, you simply take pictures of your bag and send it in for free for the company to inspect. If they accept your item, you will be paid the agreed amount and if it’s not they send it back to you.
The process is much the same if you choose the consignment option, however, they list the item for sale and pay you after it sells on their website. This takes longer and there is no guarantee you it will sell, but they say you typically make more money than selling it to them directly. This results in 70% of the final sale amount being paid to you within a week or so of the sale.
This is more for the absolute top end luxury designer items that you wouldn’t find on most sites. This company works with you to sell your product via auction to a select audience who will pay very high amounts for the right product.
There are many more sites like these, but this gives you an idea of what’s out there.
The good thing about this approach is that you can quickly tap into a targeted group of buyers, and the process is relatively straight forward. The downside is that you are governed by their policies and they naturally ask for a cut, which can limit your overall profit margin. Either way, these are simple and effective ways to sell used handbags.
But what if you want to sell brand new items online? Read on…
Create An Online Store
Setting up an online store is quite easy these days with platforms like Shopify.
If you can find a good supplier of the right type of luxury handbags, you could buy x amount of stock at a the wholesale price, and re-sell for a profit. Sounds simple, but there is much more to it than setting up a shop and given how competitive this space is and the fact that you are a new shop, it can be difficult to move product this way.
The technical aspect is relatively easy, but this requires building a brand, and an audience to sell to which is a feat in itself. Both time and financially speaking. Also, since many wholesalers have minimum quantities you can buy to qualify for lower pricing, this can also require a substantial investment into buying the product itself.
Thankfully, there is a way that removes this burden though. It’s called drop shipping.
Drop shipping is where you setup an online store in much the same way you would if you owned the products yourself, but you don’t actually stock anything. How does this work? Basically, when a customer orders something from your store, you collect payment and process the order with your wholesaler, who then dispatches the order to the customer directly.
This can be a very lucrative method that effectively removes the need for a large investment on your part, but you still need to work on developing your brand and you are still competing with other, much more established, online shops. Since you are acting as a middle man between the customer and wholesaler, things can also get a little messy.
Overall, it can be easier and it definitely reduces your startup costs, but this will still require a substantial amount of time and effort to get profitable.
Take Advantage of Currency Fluctuations
This is an idea that could work quite well if you know the right people to sell to.
Basically, the very same (brand new) designer bags are sold at (sometimes) drastically different prices depending on which country you buy from.
For example, if you live in the US and buy from a country like France, some luxury handbags can be a LOT cheaper. Also, you are eligible for the the 20% VAT refund when you return to the US which further reduces your overall cost. The end result can be $1000’s in profit for just one single bag. And that’s after you give your customers a whopping discount. The same is true for buying inside the US and selling abroad, although not with the VAT aspect.
Making this profitable in terms of buying and selling is very simple. Do your homework and run your numbers.
The key to making it profitable beyond selling to a few people you know over a few year period, is networking. There are many offline and online ways you can do this such as social media.
Either way, if you can let the right people know that you can supply them with a genuine bag for a solid discount, you can make money this way. You can also find various shipping companies to work with that mean you don’t even need to leave the country.
This would work best for a savvy entrepreneur with an ‘ear to the ground’ so to speak, a decent bank roll, and a good network.
Become a Designer Handbag Affiliate
Hands down, this is the simplest route and potentially a very lucrative one.
This is also the method I know the most about, since it’s how I make money myself. I don’t sell handbags, but the process is the same regardless of what you sell.
How does it work?
Various websites that sell designer handbags (and all kinds of luxury goods) allow you to partner with them for free via what is called an ‘affiliate program’. They allow you to promote their products online through your website as an affiliate, and when someone buys a product through your website, you will earn a commission.
Everything is automatically tracked, so the company knows it was you who sent the customer their way.
I learned how to do this through a platform called Wealthy Affiliate which is free to start and very beginner friendly.
To show you what I mean, I did some digging, and the going rate for affiliates in this space who do this, is between 5-10% commissions. This may not sound like much, but on higher ticket items, it adds up quickly.
For example, you could make up to $250 on a $2,500 purchase, which is not unreasonable to expect within this space. And this is just ONE sale. If all you did was make 10 sales per month you are making a nice little side income doing this, and scaling this to full-time status is very achievable.
One good example of a reputable site with a free affiliate program is MyTheresa.com which pays an 8% commission for any customers you send their way. The cool part about this affiliate program, is that even if a customer decides not to buy immediately, but comes back and purchases within 30 days, you will still earn the commission. It is also possible to make multiple sales within that 30 day window from that one customer.
The great part about this model is that you don’t need to pay massive amounts to stock product, and the entire process of making money is a lot simpler. Also, since you are helping folks with information rather than selling them stuff directly via an online store, your competition is much, much lower.
The drawback is there is some learning to do to get good at this, and it can take several months to start turning a regular profit. But the opportunity is massive for anyone willing to learn and apply.
There you have it. Some simple ways to make money selling designer handbags on the internet that anyone can do. Some methods are simpler than others and are going to be more suitable to your circumstances. Whatever works for you.