Online Consignment Signing On More Items Than Ever

Secondhand apparel is getting another go-around, more than ever before, especially online.

This time of year, consignment shops are seeing an uptick, namely because of the post-holiday calm. Many retailers, like Swap.com, say their inventory is quickly growing. Swap executives told The Wall Street Journal that, in Jan. 2015, items marked “new with tags” bumped up nearly a quarter, and this January, that number is slated to pop up even more.

There is apparently big business in online consignment shops. Back in December, Swap raised more than $20 million in financing for its platform, which hosts a 1.5 million-item inventory. Swap is not alone in consignment platforms raising big sums in 2016: The RealReal, which focuses on luxury items, announced raising an additional $40 million among competitors like ThredUP, Poshmark, Vestiaire Collective and Tradesy gaining some traction. And even secondhand sneaker company Stadium Goods landed $4.6 million just this week.

According to the National Retail Federation, more purchases made online are returned than those in store. On National Returns Day, Jan. 5 this year, that was made apparent more than ever. More than 1.3 million packages were shipped back to retailers on the day. That’s up from 1 million packages on last year’s National Returns Day (Jan. 6, 2016) and a total of 5 million for that week.

Market research firm Euromonitor reported that internet apparel retail sales, incorporating secondhand platforms, will grow from about $53 billion in 2016 to $60 billion in 2017 to nearly $80 billion in 2020.

Analysts say these numbers relate directly to how people use consignment shops online. Some consumers say they’re strapped for cash after their holiday gift giving has subsided, and they try to get rid of some items by way of an online consignment platform, in order to get some return for themselves. Those items can include never-worn items with the tags still on, which may or may not be those gifts that they can’t return or say they weren’t a fan of during that gifting experience. (Apparently, 73 percent of Americans fake their reaction — admit it, you were probably one of them.)