These Companies Are Making Millions Selling Used Fashion Items Online

While designers try to capture the runway with the latest trends, there are companies quietly making millions reselling used luxury items online.

The Breakdown

The global supply chain slow down has made it much more difficult for people to get the items they want, and even if the items are available, there’s usually a limited supply.

Brands have been playing into this “limited Availability” as a way to increase exclusivity, which works well for brands in the short term with many selling out, but most consumers have been left looking for alternatives.

Second-hand luxury item sales have been increasing year over year since 2015.

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The Major Players

fashionphile has annual revenues of over 200 million. They focus primarily on handbags, designer jewelry, and accessories.

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StockX has eye-watering revenues of over 400 million per year. They got their start selling sneakers, but recently they have made a major push into selling all things used such as handbags, watches, and even collectible cards.

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The Opportunity

There are actually a lot of opportunities in this growing market for companies of all sizes, even individuals.

1. Sourcing

the most important aspect of this market could be the supply side of the coin, so I see an opportunity for people to go to garage sales, estate sales, goodwill, and more to source products for a cheap price and then sell them on eBay and these other marketplaces.

2. Regional Marketplaces

I see a big opportunity to just simply copy what these companies are doing, but for a specific region like the U.K., Australia, or even a country like Mexico. did this for Germany and has estimated revenues of over 8 million dollars.

3. Product Specific Niches

I think someone could come in and become the StockX of old coffee machines, or my favorite is actually vintage furniture. The lead time for new furniture right now is months, and there are plenty of local resellers sourcing beautiful items, but there’s no real online marketplace platform that I’m aware of yet.

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