Increase in resale sales

In August, eBay reported a 14% increase in second-quarter revenue to $ 2.7 billion. Jordan Sweetnam, senior vice president and general manager of eBay North America, said the San Jose, California-based company “is seeing increasing demand for unique, rare and second-hand items,” including in categories. such as refurbished sneakers, watches and electronics.

“Shortages are already changing the way people shop – pushing the holiday shopping season back earlier than ever – although the impact has yet to be fully realized,” he said, adding that “These are behaviors that we expect to see amplify until the end of the year. well in 2022.

Earlier this month, Poshmark, the social marketplace for second-hand goods, rolled out new features to help sellers capture growing demand. These tools include enabling more personalization services between sellers and their customers and a dashboard that provides customer data. The company recently posted a 22% increase in revenue to $ 81.8 million.

Such gains make it a good time to be an individual seller on a platform like Poshmark or eBay, where regular consumers can source the items and resell them for a profit.

“There is going to be an availability issue this holiday season,” said Ken Cochran, senior director of the consumer and retail group at Alvarez & Marsal, a global consulting firm. “People are going to be creative in the aftermarket and that will create opportunities for these people.”

Yet not all resale businesses are immune to shipping problems. While StockX, which started out as a sneaker resale platform but has expanded into a plethora of retail categories, doesn’t rely on traditional supply chains, the Detroit-based company does always deliveries via third party carriers like FexEx or UPS, shipping products from sellers to buyers. These carriers may experience delays this holiday season due to increased demand for prompt delivery. Therefore, StockX encourages its customers to buy early, according to Deena Bahri, chief marketing officer.

“Fortunately, StockX is in a better position to handle delays in the supply chain,” she said. “We have spent most of this year preparing for the holiday season and encourage our customers to shop early with communications and special promotions.”

Microchip Shortage Boosts Used Car Dealers

A global shortage of microchips used to make cars has prompted major automakers such as General Motors, Toyota and Ford to cut production this year, and the shortage is prompting consumers to explore the used car market.

“With the ongoing inventory issues, some newer used vehicles are currently selling for more than they were brand new,” read a September news report from JD Power. “Any owner who plans to take advantage of historically high market retention values ​​and attractive interest rates should do their research in order to make sound decisions and reap the best return available. “

Used car dealer Carvana recently reported a 198% revenue increase for its second quarter to $ 3.3 billion, following a 42% increase in revenue for all of 2020 to $ 5.6 billion. of dollars.

“We have the inventory that people are looking for,” said Ryan Keeton, co-founder and brand director of Carvana, adding that the company’s marketing is focused on selection, price and experience. “We don’t do any promotions or APR offers, it’s part of the old way of selling a car that comes with the seller and isn’t necessarily the best experience.” Its media buys include television and digital ads.

While most resale platforms don’t openly call out the sourcing and delivery issues that traditional retailers face, some brands are starting to allude to them. Brooklyn-based crafts market Etsy got creative earlier this week in an email to customers who appeared to be complaining about the countless delays from competitors. The subject line of Etsy’s Tuesday afternoon email read “If delivery times make you The text of the message read, “The ETA of your Etsy order should not be kept in camera. Get bespoke beauties to personalize your tablet with estimated delivery dates. Like resale platforms, Etsy, where from. Many sellers are reselling vintage products as well as new creations, saw its revenue increase this year, most recently it increased 23% to $ 529 million in June.

Forrester’s Kodali suggests resale platforms can make more money this holiday season by closely monitoring consumer behavior. “If they’re doing a good job of trying to get ahead, so if they see searches for certain types of items that may be out of stock – like cell phone protectors or leggings – s ‘they are able to jump on it and say,’ Oh, we have these items, we have good, almost new versions’, they would be able to capture some of the lost demand due to stockouts, ”a- she declared.

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