Social media has been given some of the credit (or blame, depending on how you look at it) for fueling fast fashion. It is said that Instagram, SnapChat and the like make young people feel as though they can’t be seen in the same look twice.
Well, if that’s the case, online resale sites have no doubt received a lift as well, especially those that combine social with shopping. On such example is Poshmark, which announced yesterday that it has raised $87.5 million led by Temasek Holdings, more than doubling Posmark’s funding to date.
The Singapore-based investor could also act as a strategic partner as the reseller positions to expand into Asia next year.
Poshmark’s CEO Manish Chandra said sellers on the site currently post $4 million worth of new fashion items daily. The site generates revenue by taking a 20 percent commission on sales above $15. Below that threshold, it earns $2.95 per transaction.
“The main difference between Poshmark and our competitors is that the company doesn’t focus on merchandise (or hold merchandise); it focuses on people,” Chandra told VentureBeat. “Poshmark connects people to one another through their shared connection over fashion.”
He has also called the site one of “the largest and most personal online fashion malls for the Instagram generation.”
Along with the resale items, Poshmark also has a wholesale marketplace where users can shop 100 different brands.
The company also just unveiled a new service, Style Match, which allows users to get outfit suggestions through Amazon’s Alexa directly from Poshmark sellers.
PoshMark is just one of the online sites vying for consignment shoppers. Competitor ThredUp recently went upscale with a new storefront for luxury consumers, putting it head to head with The RealReal, which is pushing into brick and mortar.
The segment is said to be worth $18 billion today with projections that it will grow to $33 billion by 2021. A survey by ThredUp found that shoppers love these sites because they offer value and savings but they also provide a treasure hunt and the ability for them to be more eco-friendly.