Today’s problems
Online resale happens on C2C platforms brands don’t control. The second-hand fashion market is growing 11 times faster than traditional retail, but brands don’t get a cut of this. The lack of brand presence in resale means they fail to re-connect with customers, lack information about what items resells, miss out on revenue and the opportunity to promote circularity. For consumers, the online fashion resale experience still leaves a lot to be desired compared to retail e-commerce.
The solution
The startup is developing a multi-brand, C2C, fashion resale marketplace. The platform gives brands a cut of every transaction between users. In exchange brands provide item data (pack shots, item descriptions, materials, season, etc.) to the platform. This data is used to create an information-rich marketplace, make it on-brand, beautiful UX, and make it easier for users to list items for sale.
The business model
The company takes a 15% cut when an item is sold between users. Half of the 15% is given to the brand partner.
Sellers are responsible for shipment using a courier service and receive a shipping label from the company.
The brand is not in physical contact with the (re)sold item at any point.
The company handles customer service.
Payments between buyer and seller flows through the company.
Revenue share example
Item sold for DKK 500
- • DKK 37.50 to the company
- • DKK 37.50 to the brand partner
- • DKK 425 left for the seller
Team
- A – founder with +8 years of digital strategy and business development experience (Deloitte, UN, startup experience).
- B – tech lead / consultant with +8 years of full-stack software development experience (digital agency, AI, e-com, CTO with startup).
- C – consultant and brand partnerships with experience as buying and web manager from high-end fashion retailer.
Status
Have undertaken significant research and validated the prototype with 80-100 users in interviews.
Signed an MoU with one large high-end Nordic brand, in conversations with 2-3 other brands that have shown interest. CRM contains 30-40 brands to target, possibly more.
There is a technical prototype (coded in JS, Typescript, Firebase, Expo Go)
Received a grant of $7k in soft funding (SMV:GRØN), and part of Lifestyle and Design Clusters (LDC) Startup Lab.
Recently launched an Instagram page to create a waitlist of users managed by the intern.
Target to get a handful of similar brands on prior to launch to have sufficient mass.
Technical prototype requires 3-4 months of full-time work by 1-2 developers to be ready.
Additional opportunities (and user feature requests) AI can aide in different ways in resale.
