The Glossy Podcast

'The second-hand market isn't going anywhere': Fashionphile founder Sarah Davis on the evolution of luxury resale


Listen Later

Luxury brands typically want little to do with the second-hand market, but resale companies like Fashionphile are slowly winning them over.

Founded in 1999 by Sarah Davis, the company invites customers to drop-off top-shelf accessories at one of its physical locations, where Fashionphile will buy them upfront. Trained Fashionphile employees verify the authenticity of the item before it's sold online, and the original owner gets a piece of the pie -- often a big one.

A 70-30 split is common, with Fashionphile taking the smaller cut, Davis said. "But if the velocity of sale will be quick or if it's a super high-dollar item, or it's very popular, we'll give you much more," Davis said on this week's episode of the Glossy Podcast.

Fashionphile limits its inventory to 51 luxury brands, many of which were once worried about resale tainting their brand image -- second-hand isn't exactly synonymous with luxury, after all. What's more, there's been concern from full-price retailers that the resale market will bite into their revenue.

In the last few years, Davis said, several luxury companies have come around.

"I think the brands have recognized [the resale market] isn't going anywhere. And so, more and more, they're thinking, 'What do we do about this?' It's led to some really amazing conversations we've been able to have with them. They're curious," Davis said.

One thing that helped Fashionphile's image: a recent minority stake investment by Neiman Marcus, which now hosts some of Fashionphile's drop-off locations.

More than 20 years after opening in Beverly Hills, Davis pointed to "a 50% growth rate year-over-year, consistently." The company's since opened locations elsewhere in California, as well as in New York and Texas.

Davis talked about the importance of shipping products in unboxing video-friendly packaging, the trick to selling used shoes and the teenage boys who covet Hermès belts.

...more
View all episodesView all episodes
Download on the App Store

The Glossy PodcastBy Glossy

  • 4
  • 4
  • 4
  • 4
  • 4

4

244 ratings


More shows like The Glossy Podcast

View all
Fat Mascara by Jennifer Sullivan & Jessica Matlin

Fat Mascara

1,700 Listeners

Breaking Beauty Podcast by Dear Media, Jill Dunn and Carlene Higgins

Breaking Beauty Podcast

911 Listeners

The Business of Fashion Podcast by The Business of Fashion

The Business of Fashion Podcast

571 Listeners

Second Life by Second Life

Second Life

2,846 Listeners

Dressed: The History of Fashion by Dressed Media

Dressed: The History of Fashion

1,501 Listeners

The Glossy Beauty Podcast by Glossy

The Glossy Beauty Podcast

155 Listeners

Let's Get Dressed by Liv Perez

Let's Get Dressed

276 Listeners

Gloss Angeles by Kirbie Johnson and Sara Tan

Gloss Angeles

680 Listeners

Everything is the Best by Dear Media, Pia Baroncini

Everything is the Best

1,186 Listeners

The Run-Through with Vogue by Vogue

The Run-Through with Vogue

691 Listeners

Life with Marianna by Life with Marianna

Life with Marianna

2,502 Listeners

The Who What Wear Podcast by Who What Wear

The Who What Wear Podcast

93 Listeners

Lipstick on the Rim by Sony Music Entertainment

Lipstick on the Rim

976 Listeners

The Debrief by The Business of Fashion

The Debrief

41 Listeners

Fashion People by Audacy | Puck

Fashion People

167 Listeners

Fashion Neurosis with Bella Freud by Bella Freud

Fashion Neurosis with Bella Freud

200 Listeners