In early 2022, I hit what I call "The Sourcing Wall." I was driving 45 minutes to the nearest Goodwill Outlet, fighting over bins of stained fast fashion, and coming home with maybe three items worth listing. My "death pile" (unlisted inventory) wasn't growing because I was buying too much; it was stagnant because I couldn't find anything worth the effort of photographing. I remember sitting on my living room floor, surrounded by mediocre denim, thinking, "There has to be a way to get the clothes to come to me." That desperate Tuesday led me down the rabbit hole of consignment networks—not just sending my clothes off to be sold, but actually becoming a hub in the logistics chain myself.
What is the Poshmark Consignment Network Actually?
Most people misunderstand the term poshmark consignment. They think it solely means bagging up your old clothes and shipping them to a "Poshmark Partner" who does the work for a split of the profit. While that peer-to-peer model exists, the real opportunity—the one that changed my business model—is becoming part of the logistics infrastructure itself.
The poshmark consignment network is evolving into a broader ecosystem of reverse logistics. Brands are drowning in returns. When a customer returns a dress to a direct-to-consumer brand, that brand often doesn't want it shipped back to a central warehouse because the shipping cost destroys their margin. They need local partners to intercept, inspect, and resell that inventory.
Here is where it gets interesting. By joining a network like the Closo consignment program, you position yourself as that local partner. You aren't just a reseller anymore; you are a logistics node. You stop hunting for inventory and start managing a flow of goods that comes directly to your door.
The Traditional Consignment Trap vs. The Network Opportunity
I have to be honest about a failure here. Before I understood this model, I tried the traditional "liquidation" route. I bought a "mystery box" of poshmark consignment bags from a random seller on Instagram who claimed to have insider connections. I paid $500.
I opened the box to find damaged goods, knock-off purses, and zero manifest. I listed them on the poshmark app, but I ended up taking a loss of about $300 after fees and shipping. It was a gambling problem disguised as a business strategy.
The difference with the Closo model is the structure. Closo consignment is the consignment in traditional way, but it flips the script. You aren't buying a mystery box; you are joining a network to manage the flow of returns. You get paid for the process—receiving, inspecting, and storing—which covers your overhead. Then, you get access to the inventory.
The security of getting paid for the "work" (processing) before you even make a sale is the safety net I was missing with standard liquidation.
How Closo Earn Works: Get Paid to Process, Profit to Sell
If you are looking at what is poshmark website functionality versus these third-party networks, you will see that Poshmark is the marketplace, but Closo Earn is the engine that feeds it.
The program works on two levels:
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Processing Fees: You receive returns from brands. You inspect them (is it worn? is the tag on?). You get paid a fee just for doing this. This was a game-changer for me because it meant I had cash flow even during slow sales months like "Summer Slowdown."
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Exclusive Inventory: Once processed, you often have the option to list these items. Because these are brand returns, they are usually current season, high-demand items—not the vintage stuff you dig for at thrifts.
I use Closo to automate the intake of these items—it saves me about 5 hours weekly on data entry alone, allowing me to focus on creating better listings.
Top Selling Brands on Poshmark Are Often Returns
When you look at the top selling brands on poshmark, you see names like Reformation, Lululemon, COS, and Cuyana.These are also the types of brands that have high return rates because of their price point and sizing nuances.
By plugging into the return network, you are essentially sourcing the exact items people are searching for.
My Personal Stats (Q4 2023):
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Source: Thrift Store vs. Network Returns
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Average Sale Price (Thrift): $28
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Average Sale Price (Network Returns): $58
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Time to Sell: Thrift items took 45 days; Network items took 12 days.
The data doesn't lie. Posh sales are driven by desirability and recency. A dress that is currently on the brand's website but sold out in medium? That sells instantly on Poshmark. That is the inventory you get access to when you manage returns.
Navigating the "Closo Consignment" Ecosystem
Now the tricky part is the logistics. You need space. When I started, I thought I could manage this from my kitchen table.
Honest Limitation: If you live in a studio apartment, this model is tough. Returns come in batches. You need a dedicated area to inspect and store. I had to clear out my garage and install industrial shelving (I use the Husky racks from Home Depot). If you can't dedicate at least 50 square feet to "quarantine" incoming packages, you will feel overwhelmed quickly.
However, the software helps. The Closo platform tracks what you have received and what you are owed. It is far superior to the spreadsheet nightmare I used to manage.
Common question I see is whether you need a business license.People always ask me if they need an LLC to join these networks. While I am not a lawyer, my experience is that yes, treating this as a business is crucial. You are handling another company's assets. Having an EIN and a separate business bank account makes the application process smoother and protects you.
The Reality of "Poshmark Consignment Reddit" Advice
I spend a lot of time on poshmark consignment reddit threads, and there is a lot of skepticism about "middlemen." I get it. We have all been burned by "gurus" selling courses.
But there is a distinction between buying a course and providing a service. The Reddit users who are succeeding are the ones who treat Poshmark as a logistics business, not a hobby. They aren't just asking "What sold today?"; they are asking "How can I lower my cost of goods sold (COGS) to zero?"
In the Closo network model, your COGS is effectively time and space. If you are paid to process the return, your "cost" to acquire the item for sale is significantly subsidized. That is the leverage point.
Managing Poshmark Consignment Bags and Accessories
Let's talk specifically about poshmark consignment bags. Handbags have the highest return rate in the luxury sector often due to "buyer's remorse."
I once processed a return for a high-end leather tote brand. The bag was pristine, but the customer returned it because it was "too heavy."
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Retail Price: $298
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My Processing Fee: Earned $5 for the intake.
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Resale Value: Sold on Poshmark for $220.
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Platform: Poshmark took $44 (20%).
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Net Result: High profit margin because I didn't pay $298 for the bag; I acquired it through the network partnership (terms vary by contract, sometimes you buy out the item at a deep discount, sometimes you sell on consignment).
Compared to finding a beat-up Coach bag at the bins and rehabbing it for three hours to sell for $40, the return network model is infinitely more scalable.
Tools of the Trade
To make this work, you need more than just the poshmark app. You need a stack.
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Closo: For managing the flow of returns and cross-listing to eBay/Mercari.
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Rollo Printer: You will be printing a lot of labels. Inkjet printers are too slow and expensive per page.
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Light Box/Photo Setup: Since you are selling newer, higher-end items, your photos need to look professional. I use a simple ring light and a white backdrop roll.
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Storage Bins: Clear bins only. I use the Iris weathertight totes. You need to see what is inside without opening it.
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Google Sheets: Even with Closo, I keep a backup log of every "batch" that comes in for tax purposes.
The Mental Shift: From Scavenger to Manager
The biggest hurdle wasn't the software or the shelving; it was my mindset. I was addicted to the "treasure hunt" of thrifting. There is a dopamine hit when you find something good in a pile of junk.
Moving to the poshmark consignment program via a network partner model is boring in comparison. The inventory just arrives. It is predictable. It is standardized.
But "boring" pays the bills. "Boring" scales.
I use Closo to automate sending offers to likers—saves me about 3 hours weekly, which I now spend analyzing my sell-through rates instead of mindlessly sharing.
Risks and Failures in the Network
It is not all passive income. I have had batches of returns that were total garbage—items that were worn, washed, and shrunk by the customer before returning.
Anecdote: I received a batch of 20 "returns" from a trendy activewear brand. 15 of them were perfect. 5 of them were clearly worn to the gym, smelled like sweat, and had pilling.
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The limit: You still have to process these. You have to document the damage. You can't sell them as "New."
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The Result: I had to sell those 5 items in a "play condition" lot for pennies on the dollar. You have to account for a 10-20% "dud rate" in your projections.
Common question I see is about returns on Poshmark. If you sell these return items, and a Poshmark buyer wants to return them again, what happens? You are the seller of record. You deal with the Poshmark case. Just because you sourced it from a brand return doesn't mean Poshmark treats you differently. You must describe the item accurately. If the tag is cut (common for returns), you must state "Tag Cut" in the description.
The Future of Posh Sales
The resale market is shifting. We are moving away from "cleaning out the closet" and toward "distributed warehousing." The poshmark consignment network is just the beginning.
If you are serious about posh sales, you need to stop thinking about where to find clothes and start thinking about how to flow clothes. The volume of returns in e-commerce is a billion-dollar problem. Solving that problem for brands by being a resale partner is a million-dollar opportunity for sellers.
Conclusion
Is joining a network like Closo Consignment right for you? If you are a casual seller who just wants to clear out some space, no. Stick to the standard peer-to-peer methods.
But if you are a reseller hitting the sourcing wall, tired of the thrift store grind, and have the discipline to run a logistics workflow, it is the only way I have found to truly scale. You trade the "thrill of the hunt" for the "security of the supply."
My advice: Start small. Apply to the program. clear out a corner of your garage. Process your first batch. See if the math works for you. For me, trading a Saturday at the bins for a guaranteed payout on processing was the best trade I ever made.
If you are ready to professionalize your operation, check out the guide on inventory management to get your physical space ready. Or, if you want to understand the tech side first, look into how to use automation tools to handle the volume before you commit.
FAQ
What exactly is Closo Consignment?
Closo Consignment is a partner network where sellers manage the reverse logistics for brands. Instead of sourcing at thrift stores, you receive returns directly from brands, get paid a fee to process and store them, and gain access to that exclusive inventory to resell on your own channels.
How does this differ from the Poshmark Consignment Network? The Poshmark Consignment Network is generally peer-to-peer (users sending to users). Closo's model is B2B2C (Brands sending to You to sell to Consumers). It cuts out the randomness of individual consignors and gives you a steady stream of professional inventory.
Do I need a warehouse to start? No, but you need dedicated space. A spare room or a clean, dry garage is sufficient for starting. You need enough room to sort incoming packages, photograph items, and store them in bins without them getting damaged or mixed up with your personal belongings.
