Dive Brief:
- Poshmark remains the leading digital platform in the fashion resale market, with 19% of secondhand clothes sales taking place on the platform in March, according to a report from Earnest Analytics.
- The RealReal was the second largest digital resale marketplace by sales in the same period, earning 14% as of March 2023. Despite these competing online marketplaces, donation-based Goodwill is a long-standing leader in the overall resale market, and is the largest secondhand clothes reseller in the U.S., earning 31% of market sales during the period.
- More retailers are exploring resale efforts, including American Eagle and H&M, who have partnered with ThredUp in a bid to cash in on the rising value of the secondhand and consignment markets.
Dive Insight:
The data from Earnest suggests consumers are becoming more comfortable buying secondhand clothes and accessories, Michael Maloof, senior director of marketing for Earnest, said in an email.
Still, the report indicated that Poshmark and the RealReal have lost market shares since 2019, when they accounted for 21% and 16% respectively. It pointed to smaller, specialized resellers who are chipping at away at specialized market share, including Goat for sneakers, Fashionphile for handbags and Depop for vintage clothing.
Maloof said shoppers are slowing down their resale spending, mirroring a larger trend in decreased discretionary spending.
“This suggests that in the near term, platforms that can show compelling value may be better positioned to retain customers,” Maloof said. “But this slowdown is also happening against a backdrop of larger, multi-category platforms taking share of wallet, and ultimately market share, from specialized platforms.”
The U.S. resale market is expected to reach a $70 billion valuation by 2027, according to ThredUp’s 2023 Resale Report.
