Poshmark announced yesterday that it is expanding its recommerce business from fashion into the $582 billion home decor market. The social commerce platform, which launched in 2011 is a resale marketplace where users can go to off-load previously-owned clothing, shoes, and accessories.
Poshmark combines social, resale and commerce to create an online community of thrifters wherein the girl “next to you” can end up being your best customer or your favorite seller. I say “girl” because the platform is predominantly used by women, with 80 percent of users being female… though the male user base is growing.
Now, I’ve blogged before about the rise of recommerce and its impact on the retail industry on The Shelf blog. Resale continues to grow and evolve, fueled in large part by the circular fashion movement that’s pushing the fashion industry into a more sustainable model. Last month, H&M and Neiman Marcus joined the growing list of retailers offering off-price, vintage, and resale apparel.
Ahead of yesterday’s announcement that Poshmark was launching its Home Market, the company also added men’s shoes, a division that is performing well, according to Poshmark founder and CEO Manish Chandra.
Poshmark is huge, and it’s growing fast. Let me give you a bit of perspective here:
- There are currently 50 million Poshmark users
- 5 million Poshmark users are also sellers.
- Eighty percent of the buyers who frequent the platform are repeat buyers.
- $100 million in inventory is listed on Poshmark by its users every week.
And Poshmark holds its own against more traditional social media platforms. According to Poshmark’s site, the platform’s users spend 23 to 27 minutes a day on the app. By comparison, the average Facebook and Snapchat users spend about 27 minutes a day on those platforms, and Instagrammers spend about 28 minutes a day scrolling and posting to Insta. Chandra says the social aspect of the platform plays a significant role in its success.
Poshmark enables buyers to have real-time conversations with sellers about the products they’re considering. And even price negotiations are simple, low-key and personable. Which is going to be hugely important when it comes to users buying and selling home goods, another industry in which social media drives sales.
Twenty-eight percent of homeowners say they have purchased something for their home in the last 12 months based on something they saw in a friend’s social media feed. Add to that the fact that most homeowners start home renovation products just to pretty-up their spaces, and it becomes pretty apparent that the home decor inspiration people are sourcing on social media platforms can quickly result in legitimate sales.
Poshmark generated $140 million in sales last year. With a current valuation of $685 million, the company is prepping to file for an initial public offering as soon as this fall.