Yahoo Finance Two fashion-loving Melburnians create game-changing way to sell old clothes: '$2,000 in one week'
Alice and Kelsey allow people to sell their pre-loved clothes and it's attracted the attention of some very famous Aussies.
If you’ve ever growled in frustration at yet another Depop timewaster or had Marketplace interactions that leave you questioning society altogether, I’m right there with you. And so were Kelsey and Alice, two fashion-loving Melburnians with “too many clothes” who yearned for a way to sell preloved clothes without the drama.
The pair launched Rack It Club earlier this year; a circular fashion store that sells your old clothes for you. Gone are the days of sitting at a local market stall by yourself for hours on end hoping passersby check out your stuff.
“We were just two women with too many clothes,” Alice, co-founder of Rack It Club explained to Yahoo Finance. “After a few cocktails, Rack It Club was born.”
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Rent a rack, sell your stuff, make bank
Rack It Club works by hiring out its rack space to individual sellers, and then transacting those sales on the seller’s behalf.
“You rent a rack space to sell your clothes for our fee, [and] we take a 15 per cent commission on anything sold,” Alice revealed.
A rack at one of the two Melbourne stores currently costs $100 for one week, or $185 for two weeks. Racks can hold roughly 45 items at a time.
The store’s online platform allows sellers to input their items and prices, and then print barcodes to attach to their clothes. When shoppers check out, the barcode attributes the sale to the relevant seller’s account.
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$2,000 in one week from a wardrobe clear-out?
“People are always surprised at how much money they can make from a simple wardrobe clean out,” co-founder Kelsey said.
"In our new store in Malvern, we just had one seller make over $2,000 in a one-week rental. In our Hawthorn store, one seller made over $4,000 in a two-week rental.”
Curious, I tried it out for myself. I knew I wouldn’t make thousands, as I didn’t have designer labels or a large volume of pieces to sell, but I was keen to see if I could shift a few items that no longer fit me.
I booked a two-week rack rental at the Malvern East store for $185, and to my surprise, made $342 in profit despite having to empty my rack 3 days early due to a last-minute interstate work commitment.
Melbourne influencers flock to sell their clothes
Rack It Club has attracted a cult following on social media and caught the attention of several Melbourne celebrities and influencers. Model Megan Gale shared her love of the store on social media, and just recently, reality star Ash Pollard rented a rack at the Malvern East store.
Not only is Rack It Club a great place to sell your preloved pieces – it’s a great place to pick up a bargain.
The store’s Instagram page keeps shoppers up to date with the latest gems that sellers bring in, with the pair saying followers “stalk” them for the latest rack drops. Zimmerman, Anine Bing, Aje and PE Nation are all on high rotation.
“That’s the beauty of circular fashion,” Kelsey said. “Rack renters can be shoppers and shoppers can be rack renters.”
Top tips for selling your preloved pieces
If you’ve got your sights set on dollar signs and a cleared-out wardrobe, Alice suggested sellers price their racks carefully. Those that are making bank in-store are following a few simple rules.
“[Pieces] don't have to be on trend but they do need to be in fashion and priced to sell”, she said, and reminded people to “think about what you’d pay for something second hand.”
Their website also recommends selling for the season – coats and knits sell well in the winter months. While higher ticket designer pieces may bring in more coin, all kinds of brands and price points can bring in sales.
But there are a couple of golden brands in high demand
“One thing we will say, is if you have Anine Bing or Alemais - it will sell like hot cakes!" Alice said.
Rack It Club currently has two Victorian stores in Hawthorn and Malvern East.
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