Sellers on online marketplaces like eBay and Amazon typically follow the “stack them high, sell them cheap” business strategy first coined by Sir Jack Cohen, founder of British supermarket chain Tesco. Flying in the face of this logic, luxury goods re-seller, What Goes Around Comes Around (WGACA), has recently opened an online store on Amazon selling one-off luxury goods from brands including Chanel, Gucci, Hermès, and Louis Vuitton.
One-off items currently listed on the WGACA store include a pre-loved Red Clemence Evelyne III GM handbag by Hermès for $4,350 and a pre-loved Monogram Canvas Beverly bag by Louis Vuitton for $1,950.
Luxury Goods and Online Marketplaces
Luxury goods brands have been slow to recognise the potential of online marketplaces.
Speaking to journalists in 2016, a spokesperson for LVMH, a French holding company that owns around 60 luxury brands, including Louis Vuitton and Moët Hennessy, wanted to distance themselves from online marketplaces and said, “the business of Luxury Stores at Amazon does not fit with LVMH full stop.” However, this attitude did little to prevent re-sellers from exploiting the opportunity.
Online marketplaces have been keen to develop the opportunity for luxury goods to be sold on their platforms. Understanding that consumer trust is a big issue when parting cash for big-ticket items, eBay has led the charge with its handbag, sneaker, watch, and collecting card authentication programs. Amazon’s Luxury Stores initiative, which the WGACA is part of, offers a similar guarantee of authenticity and quality.
Speaking about the initiative, WGACA CEO Seth Weisser said, “We were attracted to Luxury Stores at Amazon’s mission to create a convenient, inclusive destination to discover luxury goods.”
Pre-Loved Luxury Fashion
WGACA joins a long line of fashion brands engaging with online marketplaces to re-sell pre-loved fashions. While WGACA targets the luxury end of the market, that doesn’t limit the size of the opportunity.
McKinsey & Company, the global management and consulting firm, stated that the luxury goods resale market was worth $20 billion in 2020. Furthermore, that market is expected to grow by 10 and 15% year-on-year to 2025.
Of course, the pre-loved fashion market isn’t exclusively owned by luxury brands. In recent weeks, many more budget-friendly brands have entered the market. In addition, Frooition is proud to work with several high-profile charity organisations who, in post-Covid times, have doubled up and found success across their online sales channels.
To learn more about how Frooition can help you optimise your pre-loved fashion resale business on online marketplaces, book a free 15-minute discovery call with one of our eCommerce experts today.