Poshmark IPO: How Disruptive is the Fashion Resale Industry?
Poshmark, the fashion resale site for second-hand goods, made its debut on the public markets on 14 January. The stock price saw an initial surge and remains at almost double the IPO price.
Poshmark is an exciting stock bringing mutual benefits to both ends of the transaction. The platform allows consumers-turned-sellers to raise income in a new way by unloading high-end products. Meanwhile, buyers can acquire products at discounts and the empowerment of an environmentally conscious transaction.
There was a lot of hype around the Poshmark IPO and we can see why.
Key Takeaways:
- Fashion resale is disrupting the fashion retail industry as seen by an increase in traffic share and YoY growth in traffic to fashion resale sites
- Visitors to poshmark.com are more engaged than visitors to some of the top fashion sites
Read our full analysis on Poshmark
Fashion retail vs. Fashion resale
Web traffic to the top five fashion retail sites accounts for ~75% of traffic to the top five fashion retail and top five fashion resale sites (by the number of visits). However, we are starting to see some disruption from the fashion resale industry. Fashion resale sites accounted for <15% of traffic at the beginning of 2018 and managed to reach levels of ~25% during 2020.
- Top five fashion retail sites in 2020 by number of visits:
- macys.com
- gap.com
- nike.com
- jcpenney.com
- nordstrom.com
- Top five fashion resale sites in 2020 by number of visits:
- poshmark.com
- thredup.com
- therealreal.com
- grailed.com
- stockx.com
And other than a drop in growth in 20H1, year-over-year (YoY) growth to fashion retail sites have consistently been >20% since 2019.
Poshmark.com: More engaged visitors
Poshmark does a good job of engaging visitors who arrive at its site. Visitors visit more pages per visit and spend more time on the site per session than some of the largest traditional fashion retail sites by traffic share.
Uncover more insights on Poshmark, including its online traffic share compared to key competitors
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