How to start a side hustle selling luxury goods
Fancy the idea of making money from selling luxury goods? Read on to for out what you need to know to get started.
According to Google trend data, searches for “sell luxury items” have seen an enormous uplift of 5,000% in the past month, as reselling items like watches and handbags is set to be a big side hustle trend for 2023.
In this article the experts at Watch Exchange London reveal their tips on how to get started.
The luxury goods market is worth approximately £256 billion, with the largest segment of that market being luxury fashion. People are buying luxury items in order to sell them on, with some items like watches increasing in value in as little as a few years.
The amount you earn from reselling will depend on what you choose to sell, how you sell it, and of course, how much time and effort you’re willing to put in to grow your side hustle business.
Your first steps to selling luxury items
The first step to reselling luxury items is building an online store. There are many eCommerce sites that can help with this, but do your research on what sells well on different platforms and sites, and remember that some will take more of a cut of your profit than others.
You also need to decide who your target customer is. Are they in their 30s or their 60s? How much disposable income do they have, and what would their budget be? Do they want the latest current styles, or do they prefer vintage classics? Choose items that will reflect the lifestyle or aesthetic of your chosen audience.
Watches, for example, are always highly desirable, and can turn into very good investments that sell for more than the original price after only a few years. There are several watch brands that hold, and increase, their value over time. The six main brands are Rolex, Patek Philippe, TAG Heuer, Breitling, Jaeger-Le Coultre, and Omega.
Rolex and Patek Phillipe, in particular, are considered to be the most collectable luxury watches, and the most likely to increase in value over time. They are known for their quality and craftmanship, and their long history adds to their collectability. The brand recognition, popularity and exclusivity add to their resale value.
Invest in good content
Instagram is one of the most popular social media platforms worldwide, reaching 1.28 billion active users. Beautifully shot photos, good quality videos, and a well thought out aesthetically pleasing feed can attract a lot of business.
Paid Instagram adverts can target potential customers, based on their interest in similar products, and you can even use the platform to sell as well as advertise.
Check the laws
You’re allowed a £1,000 tax-free trading allowance, meaning you don’t need to tell HMRC about any income, until you make more than £1000 in a tax year. You may want to register as self-employed, even if you have another job, so you can ensure you pay the correct amount of tax. You can also claim allowable business expenses and deduct certain costs like any office supplies or travel.
Check your employment contract to make sure there’s nothing preventing you from starting your own business, especially if there’s potential conflict of interest.
Develop and grow
Your side hustle doesn’t have to stay on the side-lines forever. If you keep your goals manageable and stay on top of your finances, it can soon be turned into your full-time job – just don’t try and scale up too quickly and take on more than you can manage.
Surround yourself with support, and maybe even hire people to help you expand and grow your business. If your side hustle is successful and you’re passionate about it, and you can see potential to grow, it might be time to go full-time.
Love to start a business but don’t have an idea? Our Business Idea Kit will help you come up with with a business idea that makes you money.
Photo by Laura Chouette