Does Vestiaire Collective’s decision to drop commission fees across its entire product catalogue signal a growing battle to compete effectively in the red-hot luxury resale space?
On Wednesday the French digital luxury resale marketplace announced that commissions and price on every product listed on its website dropped by 10 percent, which it said helps improve accessibility for buyers while potentially moving goods more quickly for sellers.
Vestiaire Collective allows sellers to list their high-end goods and authenticates an item only after a customer has tapped the buy button. If the item doesn’t pass muster with one of the company’s expert authenticators, the sale is cancelled and the buyer is refunded the purchase price.
Like many other players in the high-ticket resale world, Vestiaire Collective promotes the sustainability angle of buying pre-owned luxe fashion rather than springing for newly created goods that require even more of the Earth’s limited resources. At WWD Retail 2030 last week, resale platform providers ThredUp and Rebag noted how customers are showing increased interest in making sustainable choices for their closets and wardrobes—and intend to more frequently make “secondhand” goods their first choice.
In a statement detailing the new lower commission fees, Vestiaire Collective cited data indicating that resale commands 8 percent of a luxury resale market valued at around $292 billion, though its market share is expected to double by 2022.
“This commission restructure is one of the first major changes I wanted to impact the business since joining Vestiaire Collective at the start of this year,” said Vestiaire Collective CEO Max Bittner, who previously founded and led one of Southeast Asia’s top e-commerce companies Lazada Group, which was acquired by Alibaba and last valued at more than $3 billion. “This significant drop in commission will encourage more sellers to the site, knowing they will be able to sell their item at a fast rate whilst also making a strong profit.”
Bittner continued, “I believe that giving our users more direct value is the most powerful medium to keep them engaged and excited. This is a significant moment for Vestiaire Collective as we continue to ensure we remain the most desirable global resale site for must-have pre-owned fashion.”
Vestaire Collective is backed by several investors, including Balderton Capital, Condé Nast International, Eurozeo, Idinvest Partners, Ventech and Vitruvian Partners.