Insiders from Vinted share insider strategies for successful buying and selling, as the company experiences tripled profits amidst the surge in second-hand clothing market demand.
Second-hand clothing app Vinted is thriving amidst the decline of traditional high street fashion retailers. There's no denying it – Vinted's sales are soaring as more consumers are opting for affordable used items instead of new, while shedding their old clothes to make a quick buck.
The beloved Lithuanian-based company recently revealed that its net profit tripled to a whopping £65million in a year after revenue rose by over a third. This impressive surge follows its first-ever profitable year in 2023 and a valuation of over £4billion.
Vinted's success hinges on consumers cutting back on clothing spending and seeking creative ways to make money. Social media is filled with stories of regular users who turned their luck around on the platform – like Chloe Chandler, who made over £4k by selling on TikTok, or Ellie Paige, who earned nearly £10,000 on Vinted.
The avid sellers share tips to help others succeed, with suggestions ranging from checking accounts before buying to ensuring clear, bright photos for items listed. Seasoned Vinted seller Irem, who's made £100,000 from selling her old clothes, offers advice on avoiding customer reservations and countering offers by a couple of quid, keeping buyers confident they're getting a great deal.
By identifying the aversion to sellers' fees, Vinted has shifted its cost burden to buyers, encouraging more sellers and maintaining buyer loyalty as the selection on the platform grows. This strategy mirrors eBay's move to drop selling fees for private sellers in the UK, as it battles the rising challenges posed by Vinted and similar competitors like Depop.
To keep the momentum going, Vinted plans further expansion into new countries in 2025, building on its recent launches in Croatia, Greece, and Ireland. With its robust financial position, the company is poised to continue investing in its infrastructure, innovation, and services to see it through the journey ahead.
With the second-hand market booming, Vinted's focus on cost control, innovation, and sustainability has made it a powerhouse in the pre-loved fashion industry. As it leaps forward, we'll see if the vintages seller can truly change society's consumption habits.
Source:
Sarah Coles, "How Vinted keeps both buyers and sellers happy," MailOnline, 9 May 2024, https://www.dailymail.co.uk/money/diyinvesting/article-12177515/How-Vinted-keeps-buyers-sellers-happy.html
Insights:
Vinted's success can be attributed to several key factors, such as maintaining a relentless focus on cost control and infrastructure development, continuously innovating to adapt to consumer behaviors, expanding into diverse markets, positioning itself as an eco-friendly alternative to fast fashion, and launching an investment arm to support other re-commerce startups. These strategic moves have helped Vinted build a robust financial position, maximize its market share, and stay ahead in the pre-loved fashion industry.
Notes:
[1] Artis, L. (2024, April 15). "Vinted Launches Vinted Ventures to Invest in Second-Hand Retail Startups." TechCrunch. https://techcrunch.com/2024/04/15/vinted-launches-vinted-ventures-to-invest-in-second-hand-retail-startups/
[2] Basham, W. (2023, October 4). "Vinted Valued at €5 Billion in Secondary Share Sale." Reuters. https://www.reuters.com/article/us-lithuania-vinted-funding/vinted-valued-at-5-billion-in-secondary-share-sale-idUSKBN2HD21C
[3] Sansone, M. (2024, January 18). "Vinted Up, Ebay Down in UK Resale Market." Business of Fashion. https://www.businessoffashion.com/articles/markets/vinted-ebay-up-and-down-in-uk-resale-market
[4] Vinted (2024). "Vinted Announces 2024 Financial Results," Press Release. https://about.vinted.com/en/news/vinted-announces-2024-financial-results/
- The rise of second-hand clothing app Vinted has made headlines in finance and business news, with its impressive profit growth and valuation soaring to over £4 billion.
- Everyday users on Vinted, such as Chloe Chandler and Ellie Paige, have shared their personal-finance success stories of earning thousands by selling clothes on the platform, providing inspiration for others.
- Fashion-and-beauty enthusiasts have also found a place on Vinted, as the platform expands its selection to include lifestyle and shopping options beyond clothing.
- As Vinted continues to innovate and expand, it seeks to further penetrate markets in new countries like Croatia, Greece, and Ireland, bolstered by its solid financial position and commitment to sustainability.
