Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

'I made £1,265 selling my clothes second-hand'

'I made £1,265 selling my clothes second-hand'

School cleaner Stormee James has made about $1,700 (£1,265) from selling used clothing this year, finding buyers for everything from bathing suits to her boyfriend's t-shirts.

"At first it was kind of a boredom thing," the 31-year-old from Ohio says. "It started to get into, 'Am I going to need this for money?' though thankfully I've kept my job."

Stormee used Poshmark, a resale platform which allows buyers and sellers to connect directly, taking a cut of each sale. It says sales this spring were up 50%. Rival UK-based Depop saw business double at the height of the lockdowns and says has growth has remained solid since.

Stormee, who listed her first product for sale in May, has turned some of her Poshmark earnings over to her sister and boyfriend, in thanks for the cast-offs they contributed. She's also spent some $500 back on the site, tempted by purchases for herself.

"It's so hard not to," she says, adding that she's bought some Christmas presents there too.

"I like that I can prolong the use of clothes, instead of them just getting thrown away," she says. And, she adds, "You can get really good prices."

The stay-at-home habits brought on by the pandemic have devastated demand for clothing and accessories stores, pushing sales down 25% or more and driving many firms towards collapse. But used fashion websites say they're seeing a different story.


Products on Fashionphile were "selling like crazy" this spring, says founder Sarah Davis


Fashionphile founder Sarah Davis was terrified about what the pandemic would do to her business.

She had started the company, which specialises in online sales of used designer handbags, as a seller on eBay in 1997. Now it's a standalone site, handling $200m (£148m) worth of transactions in 2019 and growing some 50%.

It turned out that that health or economic concerns didn't turn shoppers away. But the pandemic meant the sellers the site relies on were postponing trips to the post office.

"We were selling like crazy," she says. "We were literally selling everything off the shelves and getting no product in."

Resale boom


Ms Davis expects Fashionphile revenue to grow 20% this year, despite the supply hiccups.
Fashions change


Resale site Depop has seen huge growth this year

Even before the pandemic, resale platforms were rising in popularity, as fashionistas embraced unique, any-decade looks, minimalism prompted wardrobe purges and concerns grew about the apparel industry's environmental impact.

As the pandemic boosts online activity, while setting off an economic crisis, used fashion sites are poised to benefit, says Alexis DeSalva Kahler, senior analyst of retail and e-commerce at market research firm Mintel.

Last year, Mintel surveys found roughly 66% of UK shoppers and more than 70% in the US had bought or were open to buying second-hand items.

People worried about shopping second hand tended to cite concerns about cleanliness, Ms Kahler says.

But interest in the practice actually increased during the pandemic.


About 20% of US consumers say the pandemic has made them more interested in buying second-hand clothes


In June, about 20% of consumers surveyed in the US told Mintel that Covid had made them more interested in buying and selling second-hand clothing.

Ms Kahler thinks wider concerns about catching the virus from surfaces like boxes and textiles have subsided since the initial panic this spring, as we learn more about how it is transmitted.

She compares the interest in second hand clothes to the growth of fast fashion and flash discount sites like Gilt Groupe after the 2007-08 economic crash.

"We're a little bit wiser and more aware of the impact," she says. "Consumers still want to save but there's a different way to do it."

Retail challenge


In a June report for San Francisco's ThredUp, one of the leading resale sites, research firm GlobalData predicted the online market for used clothing and accessories could hit $36bn by 2024, up from $7bn in 2019,

The potential growth has spooked traditional retailers, who have responded by investing in the upstarts, launching their own clothing recycling programmes and working with the challengers to sell used clothes in some of their stores.


Selfridges hosted a pop-up shop from Depop last year


Selfridges in the UK, for example, hosted a pop-up shop with Depop last year. In the US, upmarket department store Neiman Marcus took a stake in Fashionphile, while ThredUp has worked with department sore chains JC Penney and Macy's to sell used goods in some stores.

"The retailers are going, 'Oh my god, it's a thing,'" says Lee Peterson, executive vice president at Ohio-based retail consultancy WD Partners. "They're of a mindset right now, 'Hey, let's fail fast. Let's try everything.'"

Some companies, including Nordstrom and JC Penney, have since ended their experiments.

While they declined to discuss the experience, analysts said the decisions signal the firms' internal challenges during the pandemic, rather than waning interest in second-hand items.

Indeed, in May Walmart revealed plans to collaborate on sales of used goods with ThredUp, while European e-commerce site Zalando launched a second-hand section of its site in September.

"Right now, for some retailers that are non-essential, they have to really shift their priorities," says Ms Kahler of Mintel. "But there's a reason that everybody from specialty retailers to department stores is getting into the business. There's definitely demand. It's not something that's going away."

Investor doubts


In recent months both Poshmark and ThredUp took their first steps towards a public share sale in the US. Sneaker resale site StockX has hinted at similar plans. The offerings are expected to raise hundreds of millions of dollars for the companies and put their worth in the eyes of the market on a par with traditional retailers.

But Forrester Research retail analyst Sucharita Kodali says the listing flurry shouldn't be mistaken for proof that used clothes are the future of the fashion industry.


Online resale sites have costs that traditional thrift shops don't


"The market is doing really well and people go public when the timing is right, when they think there's an appetite to raise money," she says. "I don't think that it suggests there's some kind of amazing business in secondary stuff."

The RealReal, one of the few companies in the sector whose financial reports are open to the public, was valued at more than $2bn last year when its shares debuted on the Nasdaq stock exchange.

But shares in the luxury resale site have halved since their peak, while revenue at the firm has slipped about 5% this year, despite growth in other areas, like buyer numbers.

Ms Kodali says technology has made it easier for buyers and sellers to connect, increasing the potential market of second-hand shops and making it easier to hunt down the perfect item.

But the cost of listing and shipping one-of-a-kind - often inexpensive - items also makes for a challenging business model, she warns.

"[Thrift shops] have been around for ages. They're not going away but I wouldn't necessarily say they're on fire," she says. "Technology enables you to direct that experience a little bit better but you can't be foolish about the costs."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
×