As consumer trends come and go, the resale industry adapts, too. This past year we saw more and more companies entering and expanding in the online consignment store market with major VC investments. Companies like GoodBuy Gear and Rheaply both received millions of dollars for their hiring and expansion needs and rely on custom consignment software programs to manage their business.
But what if you’re not a VC backed reseller like they are? They started just like you did, and created goals and had a vision of growth that they set out to execute. Not everyone wants to have a huge company. Honestly, most resellers are smaller companies, under $20M in revenue, so as a business owner, its important to know what resale and consignment trends exist so you can not only compete, but win customers.
Sustainability and Conscious Consumerism:
- Consumers are increasingly valuing sustainability and environmentally friendly practices. The consignment and resale market aligns with this trend as it promotes the reuse of items, reducing waste and the environmental impact of fast fashion. Get your store’s impact measured and certified free of charge at https://resaleimpact.org/
Online Platforms and Technology:
- The shift towards online shopping and digital platforms continues to impact the consignment and resale market. Online marketplaces, apps, and websites make it easier for consumers to buy and sell second-hand items. Consignment software that makes it easy to sell online and instore is key to success. When in store sales may be down, you can email customers and increase your sales with online shopping options. There is not one customer you have that isn’t shopping online today – the question is, are they shopping with you or someone else?
Luxury Resale Growth:
- The luxury resale market has been expanding, with consumers showing an interest in purchasing high-end items at a fraction of the original price. Authentication services and a focus on quality control are crucial in this segment.
Diversification of Product Categories:
- Beyond clothing and accessories, consignment and resale businesses are expanding into other product categories such as furniture, electronics, and home goods. This diversification broadens the appeal of resale and consignment store platforms.
Curated and Personalized Experiences:
- Many resale platforms are focusing on curating their inventory to provide a more personalized shopping experience. This involves using algorithms and user data to recommend items that match individual preferences. Aravenda’s customers appreciate that Shopify has many options to help them suggest items based on their browsing history without any extra effort.
Innovative Business Models:
- Some consignment and resale businesses are experimenting with new business models, such as rental services, subscription boxes, and pop-up shops. These approaches cater to different consumer preferences and lifestyles. Certain parts of the country see increased sales when they offer something new so maybe a try it before you buy it might work for you. This is very popular in the wedding gown resale space.
- Collaboration between traditional retailers, consignment software providers and resale platforms is becoming more common. Some brands are recognizing the benefits of engaging with the circular economy and partnering with resale platforms to extend the lifecycle of their products. As a business owner, you can partner with local brands that make sense to drive traffic to your physical or brick and mortar store. Be mindful of trademarks on brand names – make sure you have a real agreement in place to use their name in your advertising and promotional materials.
We love to hear new ideas and trends you are seeing – Message us here anytime so we can keep adding and sharing with other ReCommerce professionals!