Starting clothing resale in Canada costs about $15–$50 for a closet clear-out with a few mailers, about $50–$150 for a typical ship-from-home kit with a scale, tape measure, and storage bin, or about $250–$700 when you add thrifted inventory and a backdrop for photos. Those are retail ranges to verify locally, not quotes. Platform fees come out of each sale rather than up front: Poshmark takes 20% at C$20 and over, and Depop takes 10% plus PayPal processing for Canadian sellers.
How to pick a style, list, and ship is the clothing resale side hustle guide. This page is the cash. The first buyer is how to make your first clothing resale in Canada.
| Fact | Detail for a clothing resale budget in Canada |
|---|---|
| Poshmark Canada | Free to list. Under C$20: flat C$3.95. C$20 or more: 20%, label included. Get started |
| Poshmark weight | Label covers up to 2.5 kg; heavier parcels need an upgrade. Label upgrade |
| Depop | 10% selling fee for sellers outside the UK, US, and Australia, plus PayPal processing. Seller fees |
| PayPal (Canada) | 2.90% + C$0.30 for domestic commercial transactions. PayPal fees |
| GST/HST | Small-supplier threshold of $30,000. When to register |
How much does clothing resale cost to start in Canada?
Clothing resale in Canada starts at about $15–$50 when the stock is your own closet, about $50–$150 with a proper shipping kit, and about $250–$700 once you buy inventory. The fees in the table above are charged when an item sells, not before.
| How you start | First-month cash, about | What it covers |
|---|---|---|
| Closet clear-out | $15–$50 | A few mailers, tape, and a soft measuring tape |
| Ship-from-home kit | $50–$150 | Mailers, tape, a digital scale, a storage bin, a lint roller, and a steamer if you already lack one |
| With inventory | $250–$700 | The kit, $150–$500 of thrifted stock in one style, and a plain backdrop or rail for photos |
Who should use a clothing resale startup budget in Canada?
A clothing resale startup budget in Canada fits people who will ship parcels weekly and have space for a bin or two. The closet column fits a first test. The inventory column fits only after five completed sales show what your buyers respond to.
Broader categories and local pickup are in reselling startup costs. Bigger items sold locally are in Facebook Marketplace flipping startup costs.
What are the one-time costs for clothing resale in Canada?
One-time clothing resale costs in Canada are tools you keep: a scale, a measuring tape, a bin, and something to remove lint and creases. Mailers and stock repeat.
| Item | Typical CAD | Timing | Notes |
|---|---|---|---|
| Soft measuring tape | $3–$10 | Before listing | Pit-to-pit and length go in every listing. Retail range to verify locally. |
| Digital shipping scale | $15–$35 | Before shipping | Poshmark’s label covers up to 2.5 kg. |
| Storage bin | $10–$25 | When listings leave the closet | One bin per style keeps stock findable. |
| Lint roller and garment steamer | $10–$60 | Optional | Creased clothes photograph badly. |
| Plain backdrop or clothing rail | $20–$80 | Optional | A clean wall and a hanger also work. |
A digital shipping scale TODO-AFFILIATE and a soft tape measure answer most buyer questions before they are asked.
What are the per-sale and monthly costs for clothing resale in Canada?
Per-sale clothing resale costs in Canada are the platform fee, the mailer, and on Depop, the label you buy. There is no monthly subscription in the paths this guide covers.
| Item | Published or assumed price | Notes |
|---|---|---|
| Poshmark fee | C$3.95 under C$20; 20% at C$20 or more | Includes a prepaid label up to 2.5 kg |
| Depop selling fee | 10% of item price, plus shipping if no Depop label | Boosted listings add 8% |
| PayPal processing (Depop) | 2.90% + C$0.30 domestic; more for international or currency conversion | Check your own PayPal account |
| Mailers | $1–$3 each, assumed | Buy a small pack |
| Depop shipping label | Varies by size and destination | Price it into the listing |
| Thrifted stock | What you pay | Only after five completed sales |
Poshmark’s 20% includes the label, so on items over C$20 it is simpler to price. Depop’s 10% is lower, but the label and PayPal fee are extra. Neither is cheaper for every item.
How do ongoing costs and break-even work for clothing resale in Canada?
Break-even for clothing resale in Canada is the kit cost divided by what each sale nets after the fee, the mailer, and what you paid for the item. Five steps get you there.
Step 1: Start with your own closet
Items you already own cost nothing in cash, so the first sales pay back the kit.
Step 2: Write the fee before you list
Price each item from the fee backward. Under C$20, Poshmark’s flat C$3.95 is a large share.
Step 3: Add the mailer and, on Depop, the label
Weigh the packed parcel before you set the shipping price.
Step 4: Subtract the stock cost
For thrifted items, subtract what you paid. Write it on the tag or in a sheet.
Step 5: Stop buying when the bin is full of unsold stock
Unsold stock is cash sitting in a bin. Drop prices or donate before you buy more.
Illustrative example
Suppose the kit costs $60 and you sell four thrifted items at C$30 each on Poshmark, each bought for an assumed $8. Poshmark’s fee is 20% × $30 = $6 per item, and a mailer is $1. Each sale nets $30 − $6 − $8 − $1 = $15. Four sales net $60, which pays back the kit. If one item sells at C$18 instead, Poshmark’s flat C$3.95 applies, and that sale nets $18 − $3.95 − $8 − $1 = $5.05. These figures are assumptions, not a quote, a forecast, or a typical result.
Where can clothing resale startup spending be lower in Canada?
Clothing resale startup spending in Canada can be lower by selling your own clothes first, using a wall and natural light instead of a backdrop, and reusing clean mailers. A scale is the one tool worth buying early if you ship by weight.
Skip courses, bulk mailer cases, and bought “mystery bundles” until your own sales show what moves.
Where should clothing resale spending not be cut in Canada?
Clothing resale spending in Canada should not be cut on honest condition checks, a measuring tape, and safety rules for children’s items. Health Canada’s second-hand products guide says all drawstrings should be removed from children’s clothing and that children’s sleepwear has flammability requirements. Removing a drawstring costs nothing. Listing cotton children’s sleepwear you cannot verify can cost the sale and the buyer’s trust.
Keep payouts apart from daily spending until fees and stock costs are subtracted. KOHO TODO-AFFILIATE is one Canadian account that can hold marketplace payouts.
Which tax rules apply to a clothing resale budget in Canada?
Clothing resale income in Canada is self-employment income when you are carrying on the activity for profit, reported on Form T2125, Statement of Business or Professional Activities, and self-employed people pay the whole Canada Pension Plan contribution, both portions, on the net. GST/HST follows the $30,000 small-supplier test, not the taxi and ride-sharing first-dollar rule. Nova Scotia’s HST is 14% as of 1 April 2025 on the CRA charge and collect the GST/HST table, and Quebec charges GST and QST.
This is not tax, legal, or insurance advice.
Keep purchase notes, payout reports, PayPal statements, and supply receipts. Report the activity on Form T2125 with the T1. The small-supplier test is worldwide taxable supplies, yours and your associates’, of $30,000 or less in a single calendar quarter and over the last four consecutive calendar quarters. Add other side-hustle revenue to the same pot. Under that test, registration is usually optional. Over it, you register on the timetable on the CRA’s when-to-register page. Reselling clothes is not ride-sharing, so the first-dollar rule on the taxi page does not apply unless you also carry passengers for a platform.
Supplies, platform fees, and subscriptions used for the business are generally current expenses. Equipment that lasts for years, such as a computer or a camera, may be capital cost allowance on the business-use portion rather than a one-year deduction. If you are registered, GST/HST you paid on business purchases can often be recovered as an input tax credit to the extent of commercial use, with receipts that show the tax. If you are not registered, you do not charge GST/HST and you do not claim the credit.
Once registered, charge the rate for the province where the supply is made, unless a platform rule you have read says the platform collects. Some provinces use HST. Others add PST on top of GST. Use the GST/HST calculator (and rates). For a set-aside habit, see how much tax to set aside for a side hustle in Canada.
Which budgets sit next to clothing resale in Canada?
The full set-up is in how to start clothing resale in Canada, and the first sale is how to make your first clothing resale in Canada. General reselling is reselling startup costs. Local pickup is Facebook Marketplace flipping startup costs. Your own checkout is Shopify store startup costs. More resale work is in reselling and e-commerce.
What are the common questions?
How much do I need to start reselling clothes in Canada?
About $15–$50 if you sell your own clothes and buy a few mailers, about $50–$150 for a full shipping kit, and about $250–$700 with thrifted inventory. These are retail ranges to verify locally, not quotes.
Is Poshmark or Depop cheaper for Canadian sellers?
It depends on the item. Poshmark takes 20% at C$20 or more but includes the label. Depop takes 10% plus PayPal processing, and you pay for shipping unless a Depop label is used. Run both sums on your price.
Do I need a scale to resell clothes?
It helps. Poshmark's label covers parcels up to 2.5 kg, and heavier ones need an upgrade deducted from earnings. On Depop, weight sets the label price you pay.
Should I buy inventory before my first sale?
No. Sell clothes you already own first. Five completed sales show which styles and prices work before you spend on thrifted stock.
Can I deduct clothing resale costs in Canada?
Supplies and fees used for the business are generally expenses, and stock you buy to resell is part of your cost of goods. Keep receipts. This is not tax advice.
Which sources support this guide?
The rules, rates, and platform requirements in this guide are checked against these primary sources. Retail price ranges are labelled as ranges to verify locally, and they are not quotes.
- When to register for and start charging the GST/HST — Canada Revenue Agency
- Charge and collect the GST/HST — Canada Revenue Agency
- GST/HST calculator (and rates) — Canada Revenue Agency
- Form T2125, Statement of Business or Professional Activities — Canada Revenue Agency
- Contributions to the Canada Pension Plan — Government of Canada
- GST/HST for taxi and ride-sharing drivers — Canada Revenue Agency
- Claiming capital cost allowance (CCA) — Canada Revenue Agency
- Input tax credits — Canada Revenue Agency
- Get started on Poshmark — Poshmark Canada
- How do I upgrade my shipping label? — Poshmark Canada
- Seller fees and charges — Depop Help
- PayPal merchant fees (Canada) — PayPal
- Industry guide to second-hand products, including children's products — Health Canada