There are the joys of thrift-store shopping: Unearthing a vintage Pucci blouse buried within rows of synthetic dross and paying $5 for it. And there are the sorrows: That slightly grubby feeling you get combing rack after rack of used clothing, and the letdown when some skinny-jeans-clad skater snags the last Pendleton shirt at a pay-per-pound store.
While preserving the treasure-hunting rewards of thrift store shopping, a new crop of startups aims to improve upon the rest of the experience by harnessing the internet and your smartphone. Camera-happy, deal-addicted shoppers: This is for you.
Entrepreneurs and investors alike watched as flash-sale sites like Gilt, Fab, and Sneakpeeq exploded. Their success however, and all the copycats, has made it harder for even the likes of Gilt to find unique, quality clothing inventory. So it's not surprising that entrepreneurs are looking for new ways to build businesses trafficking in lust-worthy fashion. Turns out the next green field to snag purple floor-length skirts are not fashion houses, but people's closets.
VCs are taken with the idea too, and have opened their checkbooks to fund a slew of startups going after the $16 billion secondhand-clothing market. Among them, Twice recently raised $4 million in a round led by IA Ventures, Threadflip raised $8 million this year from Andreessen Horowitz and other investors, and Poshmark launched in late 2011 with $3.5 million from Mayfield Fund and three other firms.
Because the competition is heating up, each startup is targeting a different shopper, from the preppy young mom who shops at the Gap, to the Manhattanite who parties every night in her Prada shoes. If you don't mind not being the first person to slip into that shift, there's never been a better time to shop for used clothes.
Twice
Try this if you: Live for Banana Republic and Ann Taylor sales.
Started by two ex-Google guys, Noah Ready-Campbell and Calvin Young, Twice is a secondhand store that hawks your clothes for you. Women send in their used clothes and Twice staffers choose the clothing they want to feature in the online shop. Instead of waiting weeks for your stuff to sell and getting a cut of the proceeds, Twice offers a lump sum upfront depending on the brand, condition, and demand for the product. If you're not happy with the offer, you can pay $5 to get your clothes back, or Twice will donate them to Goodwill for free.
Twice inspects, photographs, and lists each item, so as a buyer you can be sure there are no holes or hidden stains. Twice even accepts returns, unlike other secondhand online shops. Expect to find $288 7 For All Mankind jeans for $44 and a $65 Zara sweater for $19.
Threadflip
Try this if you: Regularly raid your 21-year-old sister's designer-label-filled closet.
Also started by a guy, Manik Singh, Threadflip is a social shopping network that asks sellers to photograph, price, and ship out products on their own. Buyers pay the shipping cost and Threadflip sends the seller a pre-paid label to ship the clothing. Threadflip collects a 20 percent transaction fee for each purchase.
It's up to each seller to make their items look as enticing as possible, which doesn't seem to be that hard. Almost everything on the site looks like it was shot by a professional. Threadflip also has a "White Glove" service for high-end designer goods, which are hand-inspected, priced, and sold by the company. Under that arrangement Threadflip takes a 40 percent cut of the sale to style, photograph, and list the item. Browsing the White Label service you can find $450 Gucci bags for less than $150 and $900 Christian Louboutin heels for $285.
99Dresses
Try this if you: Wear dresses year-round, even in January.
Y Combinator startup 99Dresses turns consignment shopping into a game. Instead of paying cash for a new-to-you dress, you use 99Dresses' own currency, called "buttons." To earn buttons you can list and sell a dress, or pay $1 per button. The more dresses you sell, the more buttons you earn, which you can turn around to spend on the site. The company's mission is to create an "Infinite Closet" where clothes are constantly swapped between members. You can find a $50 H&M little black dress for 20 buttons (dollars) and a $550 Diane Von Furstenberg gown for 150 buttons.
Poshmark
Try this if you: Follow designer collections like they're fantasy baseball teams.
While the competition relies on more conventional websites for sales, Poshmark is mobile-only, and that gives it an edge. The iOS app is downright addictive and its big "buy now" button makes it too easy to buy a glittered gold dress after you've had one too many.
If you're a clothing-swap-party fan, Poshmark is for you. Sellers upload their items for free by snapping a photo of each piece of clothing with their iPhone camera and filling in details using a handy iPhone app. Buyers do all their shopping via the same app. When the piece sells, Poshmark sends the seller a pre-paid addressed shipping label and takes a 20 percent commission.
For Poshmark, it's all about the community. Members exchange fashion tips in the comments section, and sellers often bundle items together for a reduced price when asked. Shoppers are also encouraged to attend "Posh Parties," that can take place at a local bar, a seller's home, or within the app (clearly not as much fun). Posh Parties are centered on a certain theme, like Fall fashion, or focused on a specific brand, like Marc Jacobs. You can expect to find $10 flower earrings from a locally owned shop in Florida and a $200 Donna Karan blouse for $50.
Bargain hunters have long flocked to eBay for their cheap clothing thrills, but let's face it, it's neither attractive nor luxurious. With the help of web -- and in Poshmark's case, mobile -- design teams, these startups have elevated the experience of buying second-hand.
Even if you don't mind elbowing aside wannabe-fashionista college students at the local Goodwill for a TopShop skirt, it's hard to deny the bliss that comes from buying a new wardrobe on the cheap while tucked in bed beneath your second-hand Anthropologie quilt.
