After years of being a peer-to-peer marketplace platform, Poshmark is opening its services to larger brands.
The company on Tuesday launched its “Brand Closet” program, which allows brands to connect with Poshmark buyers through the platform’s existing social selling features. Through the program, brands will be able to share limited products, conduct meetings with shoppers and create awareness through branded parties on the platform, all while driving secondhand sales online.
“We are thrilled to open our social marketplace more widely to brands, empowering them to build loyal, lasting connections with a coveted audience, tap into a new sales channel, and bring shoppers the kind of personalized service that is all too rare in ecommerce,” said Poshmark founder and CEO Manish Chandra. “By connecting brands directly to our community of highly engaged, deeply passionate shoppers and re-commerce enthusiasts, we’re building a stronger, more vibrant marketplace — it’s a win for everyone.”
Poshmark piloted the Brand Closets program in 2020 with a number of large brands, including Free People, Dose of Colors and Lucky Brand. The program currently helps brands drive loyalty and engagement while staying on top of their secondhand merchandise.
Poshmark’s announcement follows a general trend of resale platforms facilitating second-hand programs for larger brands. ThredUp currently powers resale for Walmart, Madewell, Adidas and Vera Bradley through its resale-as-a-service (RaaS) technology.
With the secondhand market set to more than double in size to $77 billion over the next five years, more brands are looking to home in on circular fashion.
Poshmark made its market debut in January and raised $277 million after selling 6.6 million shares priced at $42 apiece. In its prospectus in December 2020, Poshmark noted that revenues increased 28% to $192.8 million in the first three quarters of the year. It also noted that it swung to a profit of $20.9 million over the same timeframe, compared with the prior year’s loss of $33.9 million.
Other resale companies have gone public in recent months as well. ThredUp raised $168 million in its initial public offering in March and earned a valuation of roughly $1.3 billion.