RWRetailWire
Back to Discussions
DISCUSSION

EBay and Neiman Marcus find gold in secondhand clothes

Written by George Anderson
Today's consumers are looking for deals, even if that means buying and wearing someone else's clothes. Management at eBay and Neiman Marcus, two companies not known for having a lot in common, demonstrated they see opportunities to build their businesses via the secondhand route, even if the approaches they are taking are completely different. Earlier this week, eBay announced it had acquired Twice, an online secondhand clothing marketplace, to help improve eBay Valet, an online consignment marketplace where "Valets" sell a wide variety of goods for eBay members in exchange for a percentage of the sale. A couple of days later, Neiman Marcus said it was working with The RealReal, a consignment retailer that will pay the department store chain's customers for gently used designer clothing and accessories. The kicker is that customers, who are referred to The RealReal by the department store's sales associates, are paid for their contributed possessions with Neiman Marcus gift cards. When eBay formally split from PayPal on Monday, new president and CEO Devin Wenig said the company would surprise people in the years ahead, not by how much it was like major retail competitors, but by how different it was. He recommitted to focusing on eBay's core customers while pushing innovation in a three-pronged strategy that calls for:
  1. A more robust commerce platform: Using data to improve discoverability and the user experience;
  2. A vibrant marketplace: Attracting sellers who will bring unique inventory to the site;
  3. Elevated product and brand experiences: Creating simple and easily accessed experiences through a multi-screen strategy.
The deal with Neiman Marcus represents the first time The RealReal, which specializes in the resale of luxury designer brands, has partnered with a department store chain. The two companies ran a test in six Neiman Marcus stores in which sales associates promoted the idea of customers reselling their used goods using The RealReal. The consignment retailer initially pays 60 percent of the sales price with the percentage increasing to 70 percent for sales of $7,500 and up. The RealReal pays in the form of Neiman Marcus gift cards valued at 10 percent more than a straight cash transaction. "After seeing the increased demand for this service since its pilot program launched in February, we recognized the benefit of offering the service to our customers across the country," Wanda Geirhart, CMO at Neiman Marcus, told USA Today. A Dallas Morning News article points out that Neiman Marcus in its deal with The RealReal appears to have learned a lesson from another Texas-based retailer, GameStop, which buys back games and electronics from customers with gift cards that can be used in the chain's store and website.

Discussion Thread0