Secondhand market soars as Poshmark opens resale platform for brands

Secondhand market soars as Poshmark opens resale platform for brands.

Tags : Secondhand market soars as Poshmark opens resale platform for brands, Poshmark opens resale, Poshmark opens resale platform for brands, Secondhand market soars as Poshmark opens resale, hand shoes,

Secondhand market soars as Poshmark opens resale platform for brands.Poshmark is expanding its services to larger brands after being a peer-to-peer marketplace platform for years.

On Tuesday, Poshmark launched its "Brand Closet" program, which allows brands to connect with buyers through the platform's existing social selling features. Brands can share limited products, host meetings with shoppers and create awareness through branded parties on the platform, all while driving secondhand sales online.

Founder and CEO Manish Chandra says Poshmark is thrilled to open its social marketplace to brands, allowing them to engage consumers on a more personal level, tap into a new sales channel, and deliver shoppers the kind of personalized service that is all too rare in ecommerce. We're building a stronger, more vibrant marketplace by bringing brands directly to our community of highly engaged, deeply passionate shoppers and re-commerce enthusiasts.

Poshmark piloted its Brand Closets program in 2020 with a number of large brands, including Free People, Dose of Colors, and Lucky Brand. While staying on top of secondhand merchandise, the program helps brands drive loyalty and engagement.

The announcement by Poshmark follows the general trend of resale platforms facilitating second-hand programs for larger brands. With its resale-as-a-service (RaaS) technology, ThredUp currently powers resale for Walmart, Madewell, Adidas and Vera Bradley. 

With the secondhand market expected to grow to $77 billion over the next five years, more brands are focusing on circular fashion.

Poshmark debuted on the market in January and raised $277 million by selling 6.6 million shares at $42 apiece. Poshmark noted in its prospectus for December 2020 that revenues increased 28% to $192.8 million in the first three quarters of the year. During the same period, the company reported a profit of $20.9 million, compared with a loss of $33.9 million the prior year.

Recently, other resale companies have gone public as well. ThredUp raised $168 million in its initial public offering in March and earned a valuation of approximately $1.3 billion.

Secondhand market soars as Poshmark opens resale platform for brands.


Tags : Secondhand market soars as Poshmark opens resale platform for brands, Poshmark opens resale, Poshmark opens resale platform for brands, Secondhand market soars as Poshmark opens resale, hand shoes,

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