Julian Terkaly’s Post

Partner News: Meet Treet With Treet, brands can create fully-branded resale experiences mixing and matching whichever solution works for them: peer-to-peer, trade-in, returns or off-price. Say goodbye to outdated resale methods and hello to increased revenue and a smaller carbon footprint. Curious to learn how Treet and Capacity can level up your brand? ✨Treet is offering Capacity customers 2 free months to give resale a try. ✨ Book a demo on the blog page to learn more. https://bit.ly/3UMRExY

When Treet first launched, there were ~10 brands with resale sites. In the past 3 years, Treet alone has launched resale programs for over 180 brands. Here's our secret: 1. We made it easy. We built a platform that can launch any brand's resale shop in days (yes, days... actually). This still sets Treet apart from other solutions that take months to get off the ground. 2. We listened. We adapted the types of resale our customers (and their customers) wanted to see based on their feedback. Starting with P2P, we expanded to Brand Direct, Trade-In, and Returns. 3. The domino effect: Because we launched brands quickly, this meant more other brands saw those launches, which brought more brands to our site. "I saw you on xyz brand site" is music to our ears. 4. Resale tailwinds. Timing is everything and we hit it at the right time. Resale was on the rise (still is!), conscious consumerism is growing, and brands will always look for ways to earn more revenue while making their customers happy. Right idea x right time. (Luck played a huge factor here.)

The resale sector struggles with terminology, as words like "used" can carry negative connotations. Companies often opt for terms like "pre-owned," "pre-loved," "reconditioned," "refurbished," or "vintage" to make their offerings more appealing. For instance, REI uses "Re/Supply" to indicate their section for pre-owned gear, which can be confusing for customers not familiar with the term. Clear and consistent labeling could help reduce this confusion and make it easier for customers to find what they want. https://lnkd.in/g4msSfmy

ThredUp, a secondhand resale platform, has ended 2023 on a high note with record-breaking financial results for the fourth quarter. The company recorded a significant revenue increase of 14 percent year-over-year, reaching $81.4 million. This surge in revenue reflects an evolving consumer trend towards sustainable fashion choices and thrift market appeal. ThredUp gross profit grew to an impressive $50.4 million year-over-year, marking a 12 percent raise. However, the company experienced a dip in gross margin—a slight decrease from 61.9 percent to 63.1 percent year over year—owing partly to a $1.9 million inventory write-off in Europe. Exploring the net loss figures, ThredUp has a cause for optimism as the losses have narrowed during the final quarter, amounting to $14.6 million, or a negative 18 percent of revenue. This is a considerable improvement compared to the $19.5 million net loss recorded in the same period in the previous year. Read full article here: https://lnkd.in/gFpkABXF

One of the best articles on resale strategy I’ve read in a while which totally mirrors the approach we’ve had at Sellier from day one. It’s never been about being the biggest. Being disciplined about product and curation is what we strive for and ironically it’s our avoiding “scale” in the traditional sense (and not taking products just because we can) that’s been the biggest driver of growth for us. Of course, there’s no one size fits all approach and so much innovation across the industry that it’s hopefully a matter of time until companies like the RealReal reach profitability. “We now see shoots of profitability among certain resale companies. The strategies of those companies can be summarized with two words, “narrow” and “deep.” They are focused on a very specific set of products they know expertly which reduces authentication costs. They concentrate on efficiency in operations and avoid products they don’t know. They do not spend a lot on marketing to generate growth.” https://lnkd.in/eeiPGT5S

One of the most underutilized ecomm stats to drive conversion and AOV: 82% of Gen Z considers the resale value of apparel before making a purchase 🤯 How aren’t more brands talking about this? My prediction is they will be very soon. It makes perfect sense. Whether we like it or not, consumers aren’t holding onto their clothes for very long. Resale is an integral part of their customer journey and consumers are savvy enough to consider how resale value will factor into their purchases. Brands with resale programs are proving the resale value of their garments and bridging this gap in their customers’ mind, helping get that first purchase over the finish line. We’re in early innings here and I’m excited to see how brands will continue to highlight resale in clever ways to build trust toward conversion.

Online resale may not be the most profitable sector, but it is attracting shoppers. Last year, the total value of merchandise sold on resale platforms in the US reached $20 billion, up 11 percent on 2022, according to a report published by resale platform ThredUp and analytics firm Global Data on Wednesday. Gross merchandise value is expected to more than double to $44 billion by 2028, outpacing the wider apparel sector. Over the last few years, companies from BALENCIAGA to SHEIN have dipped their toes in the market, with the number of businesses offering branded resale rising from just nine in 2020 to 163 by the end of last year, the report found. Though these efforts are currently largely small-scale, two thirds of brands that already offer resale expect it to make up 10 percent or more of their revenue within the next five years, according to the report. If this actually happens, it would represent a seismic shift in the market. At present, the platforms leading the resale revolution are under pressure to deliver on profitability ambitions and most brands are still in the early stages of their engagement with secondary sales. Read the full story below, by BoF's Sarah Kent

Myth: It’s difficult to make branded resale profitable. Debunked: Treet-powered brands like Portland Leather Goods are seeing 260x returns on their resale investment. Lesson: Don’t overthink it. The math speaks for itself.

🤯 5% of Ministry of Supply's annual revenue is attributed to resale 🤯 Branded resale has been a game-changer for Ministry of Supply. Since launching with Treet, they've leveraged our peer-to-peer and off-price solutions to see these impressive gains: ♻️ 4X increase in resale sales (compared to previous resale efforts) ♻️ Thousands of units of "otherwise unsellable" inventory sold ♻️ 62% of sellers choose credit, then spend 196% of their credit when redeeming ♻️ 70% sell-through rate on resale listings Read more about MoS's partnership with Treet here: https://hubs.la/Q02y0S7n0

Why Resale is on the Rise: Key Stats 51% believe secondhand items are better quality than new. 62% say secondhand clothes offer better value. 72% feel the stigma around resale has dropped. The resale market is booming—are you in? 👉https://lnkd.in/etv3-S32 My Thoughts: This data shows a big shift in consumer perceptions, especially as people become more conscious of quality, sustainability, and value. Resale is no longer just about bargains—it’s becoming a savvy, smart choice. With more people embracing secondhand, it could signal a permanent change in how we view shopping in the future.