WalMart entering the pre-owned fashion market

[luckythewinner]

It may get even tougher for used clothing sellers: 

"Walmart on Wednesday announced a partnership with resale platform ThredUp to sell previously owned branded clothing, shoes, handbags and more online"

https://www.cnn.com/2020/05/27/business/walmart-thredup-partnership/index.html

[my-cottage-books-and-antiques]

"It may get even tougher for used clothing sellers"

As I already pointed out, ThredUp already has nearly two million items right here on ebay. So, to me the real significance is that ThredUp's move to WalMart....generally regarded as a place where much of Middle America shops for new clothing....is a strong indication that used clothing is no longer considered an "outlier", this further cements "used" as much more mainstream.

And that is a two edged sword. It means the buyer base for used is expanding, and with it the demand. That's a plus. But it also means that sourcing may become more difficult, and many small sellers will need to step up their game, and some may want to focus on certain niches. The nimble small seller who can adapt to change will probably do just fine.

[luckythewinner]

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@tellmemama wrote:
While some of your post bears some merit, I can assure you the part I bolded does not.  Nothing that Walmart stores carry would ever be found on ThredUp.  They only sell mid range name brands and higher end designers.

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When I went to ThredUp and searched "Walmart ", I found Walmart items listed for as low as $7.

[my-cottage-books-and-antiques]

"I also wouldn't be surprised if WalMart starts sending its returns into the ThredUp pipeline as well."

I think more importantly, ThredUp buyers can drop off their ThredUp returns at their local WalMart. That's a win-win for both companies: many buyers would prefer to drop off a return rather than mail it back, which is good for ThredUp. And WalMart gets more customer visits as people drop off returns and likely do some shopping while there.

[nocoolnamejane]

Exactly this.

I used to love shopping on ModCloth until WM bought them out. Now it's a mere shell of what it used to be, with higher prices and lesser quality...

[luckythewinner]

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@nocoolnamejane wrote:

Exactly this.
I used to love shopping on ModCloth until WM bought them out. Now it's a mere shell of what it used to be, with higher prices and lesser quality...

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I have to imagine that Walmart sucks the life out of almost anything they acquire.

[tellmemama]

Then I stand corrected.  I don't recall seeing their stuff on the site before this.  

[goldrushfinds]

Luckywinner - JMHO but I still think this concept will not work out for either party. Whether it be Walmart or Thredup, somebody has got to do the work. There are about a gazillion (slight exaggeration) sellers of uses clothing around these days. Way too much competition. Also, way too many headaches in selling used clothes (flaws, item doesn't fit, etc.). Why any large corporation would think this is an area they should delve in is beyond me. If I could place a bet on this, I would sure love to. Oh well, all we can do is watch and see. Maybe they will prove me wrong.

[slippinjimmy]

Walmart adding Thredup costs them nothing, no different than Thredup selling on eBay, they will be doing all the work and Walmart will collect their final value fee commissions.

As I mentioned upthread, Thredup are planning an IPO, just the fact they can say they have a joint deal with Walmart with increase the IPO demand and even before that will attract more Venture Capital money.

Walmart currently ranks well behind Amazon and eBay, ahead of Target and I think ahead of Alibaba's US operations (AliExpress) but they are growing faster than any of them. They also have all those retail stores to do Click 'n Pick, handle returns, act as distribution points and they have logistics infrastructure equal to Amazon. Walmart also has the deepest pockets and can afford to operate their online activities at a loss for years if need be.

Right now it's all about market share not profits. I haven't really heard anything but I'm pretty sure there are a lot of people looking at buying out Wayfair. As ecommerce matures there will be a lot of consolidation and the current financial situation, contrary to what Trump says is going to take a long time to recover and many of the mid-level companies will face the choice of mergers/acquisition over bankruptcy.

[rixstuff]

I sell a variety of items on  several sites.  That is not one of them though.  They are INCREDIBLY picky when deciding what they will and wont buy from buyers but you go to shop on their site and it is all VERY overpriced mart brand stuff. So the pairing of these two sounds about right - reselling cheap mart junk in Walmart.  Kind of a big circle of life thing going on there.  You don't make much from them either.  They will pay you $10 and turn around and offer it for $75.  You do better selling it yourself here.

[luckythewinner]

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@goldrushfinds wrote:
 If I could place a bet on this, I would sure love to. 

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Before this WalMart deal was announced, ThredUp had apparently raised $175 million in funding over the last year.

So it seems like at least few people are betting on them. 

[goldrushfinds]

Luckythewinner - None of the replies to my post change the my opinion. The facts of the matter remain the same. Selling used clothing, piece by piece, online is a dumb business model. Companies like Walmart can buy wholesale new clothing on the cheap, for not much more than used clothing, without all the headaches. I think it is a really dumb idea.

[heyyoufoundit]

Maybe with the US entering the new depression, used clothing sales becomes a big thing. Clothing for rent websites are on the upswing too. 

Maybe combine the two, 'rent to own' clothing, just like houses lol.

[bar-29368]

I think what most are missing is that when it's said WM is "partnering" with Thredsup, it's no closer a relationship than ebay has with them here.

Thredsup will just be another 3P seller on the WM "marketplace". That's the extent of their "partnership".

It doesn't mean WM is "getting into the used clothes business".

[chapeau-noir]

Exactly - it's just another marketplace venture.  Thred-Up has partnered with other retailers as well as here.  For Wally World it's a convenient hook-up with an established retailer.  I've purchased from Thred-Up for items for myself, items to flip, whatever. I've also sold to Thred-Up from time to time, though TBH, it's pennies on the dollar, really, unless you can sell in their Luxe program (and I don't deal in luxury goods).