How Has the Coronavirus Impacted Re-Commerce Businesses?

The RealReal

"The biggest thing we've changed with our business has been launching virtual appointments," a spokesperson for The RealReal told POPSUGAR. "Our stores and luxury consignment offices are temporarily closed, and we have suspended our in-home White Glove consignment service. Virtual appointments have been our way of continuing to offer a personalized consignment experience."

The spokesperson said that consignors can now book remote appointments with one of the company's experts for handbags, sneakers and streetwear, fine jewelry and watches, or home and art valuations. Customers can also make a virtual appointment with a luxury manager for consignment consultation. Appointments can be booked online through the consignment page [9], and all consignors can easily ship their items to The RealReal's e-commerce centers using a pre-paid shipping label.

Vestiaire Collective

"As a resale e-commerce business, we look at both sales and deposits," Vestiaire Collective Co-Founder and President Fanny Moizant told POPSUGAR. "What we have seen is an increase in deposits coming from impacted markets over the previous few weeks. People are spending time at home, so they're getting around to clearing out their wardrobes. On the sales side, orders were initially decreasing, but again, as most of us are at home, we're seeing increased engagement on our app. There seems to be a particular interest in the accessible price points right now."

Fashionphile

"COVID-19 has had a significant impact on our business," Fashionphile President and Founder Sarah Davis told POPSUGAR. "Our entire operation is a white-glove service that requires operators receiving, authenticating, reviewing, photographing, storing, and shipping physical product. This isn't something that is possible during a full lock-down situation. That being said, this time has also given our work-from-home digital and tech teams an amazing opportunity to move forward on features that we've wanted for years, but have been a lower priority. We're taking advantage of this time and will be much stronger for it in the long run."

Are Re-Commerce Sites Still Buying Used Clothing and Accessories?

The RealReal

A spokesperson for The RealReal told POPSUGAR that the company is taking every precaution to ensure the safety of its customers, consignors, and staff by following coronavirus (COVID-19) guidelines provided by the Center For Disease Control and Prevention [10], Public Health Agency of Canada [11], and the World Health Organisation [12].

"Per the CDC, there is very low risk of spread from products or packaging that are shipped over a period of days or weeks, so we are accepting consignment by mail only during this period. We're also cleaning and sanitizing our warehouses every hour of every shift. Consigned items receive a light cleaning in receiving. Additionally, we steam clean fine jewelry and watches, heat steam ready-to-wear, and wipe down accessories and handbags."

Vestiaire Collective

"More than ever, it's important to support each other during this time," said Moizant. "Many people sell pieces they no longer need to raise funds, so buying from sellers helps support people who might need it during this difficult period. Also, we know that our members value being able to purchase pieces from an individual they can engage with directly, as this helps build a sense of community amongst our global members. Some people may be concerned about receiving packages right now, but as the WHO [13] has advised, it is safe to receive a package from an area impacted by COVID-19."

Fashionphile

"We are still making offers and are taking items on buyout and consignment," said Davis. "Our team can respond to all quote requests from home, make offers, and send free shipping labels. What we've noticed is that people are really using this downtime to clean and organize their homes and closets. This means donating some stuff but also selling some of that to Fashionphile. We're seeing a ton of interest on this front and encourage people to ship those items to our headquarters in Carlsbad, where they are safely received and stored. As for the sanitation of the product intake, the fact that these boxes are being stored unopened in our climate-controlled facility and will be processed in order of receipt means that they will be completely safe to handle by the time they are processed. That said, our staff will all be in full personal protective gear when they are able to come back to work."

Are Re-Commerce Sites Able to Ship Items to Customers?

The RealReal

"We're currently still shipping to customers right now," a spokesperson for The RealReal said, again referencing the low survival rate of coronavirus on packages and products per the CDC [14].

Vestiaire Collective

"Yes, we are still currently shipping to customers from our EU and HK logistics hubs," said Moizant. "As a company, we continue to monitor individual countries' recommendations and those from the WHO [15] extremely closely, and we have put in place strict measures to protect everyone. The entire team at our Paris headquarters, and most of our regional offices across the globe, are working remotely so we can continue to function as a business. For our logistics team in northern France, we have divided our staff into two separate teams who are alternating their time in the warehouse. We're also advising them on alternative break times, and everyone is protected by wearing a proper mask. We have also increased sanitization of the building, and created a dedicated space for medical supplies and temperature monitoring."

Fashionphile

"We are able to ship with some delays right now," Davis told POPSUGAR. "We have a bare-bones team working in the most socially-distanced setting, wearing personal protective gear. One thing that we've found absolutely fascinating is that as people are expecting significant delays, but still want a particular item. They're putting it on reserve," Davis said.

For those unfamiliar, Fashionphile's Reserve [16] is a layaway program that the company implemented over ten years ago. "It has ramped up significantly in the last couple weeks," Davis told POPSUGAR. "Over 60 percent of our purchases right now are put on Reserve, which really isn't something we anticipated."

Are Re-Commerce Sites Still Paying Sellers Once Their Used Items Sell?

The RealReal

The RealReal accepts items on consignment and pays sellers once pieces sell, and the spokesperson said that the company is continuing to follow their standard processes for paying consignor commissions. "Some consignors may experience delayed shipping times for their sold items, as we are not able to ship items located in one of our temporarily closed facilities until they reopen," the spokesperson said.

Vestiaire Collective

"Our payment schedule is running as usual," Moizant told POPSUGAR.

Fashionphile

Davis told POPSUGAR that Fashionphile is not currently able to review and authenticate items sent to the company's headquarters in Carlsbad, resulting in a lag on payment. "In this scenario, we'll be able to pay out before a traditional consignment company would have been able to process an item, post it online, sell it, and pay their consignors."

Davis said that Fashionphile is slowly but surely working through a backlog of orders that have built up in the process of transitioning teams to a work-from-home structure. "The patience that we are seeing from buyers and sellers who are continuing to support our team is nothing short of tear-inducing," she said. "We feel such an amazing community spirit as we receive social media, email, and phone communications from our loyal customers who are patiently responding to the very fluid situation that we are dealing with."

What Additional Steps Are Re-Commerce Sites Taking to Keep Employees and Customers Safe?

The RealReal

"Our priority remains our community at this time, and we are following local government and public health guidelines to make shopping and consigning with The RealReal safe and accessible for all. We are taking additional precautions in our warehouses to ensure they are a safe and healthy environment," the spokesperson said. "In addition to cleaning consigned items and sanitizing our workspaces, we're supplying gloves, antibacterial wipes, and hand sanitizer to our teams. We've reduced the volume of staff in our warehouses to align with social distancing recommendations as well as local government and CDC guidelines. We're also covering paid sick time for both hourly and salaried employees to ensure sick employees stay home."

Vestiaire Collective

"Our company will continue to stay flexible and react quickly as the situation develops to ensure a good customer experience," Moizant said. "Our global community lies at the heart of Vestiaire Collective, so we are working to do everything possible to ensure a safe and reliable service for our members. I'm aware that some people may be concerned to receive a package from an area that is impacted by COVID-19, but we would like to reassure buyers, as stated by the WHO [17], that it is safe to receive a package from any area where the virus has been reported. It is a difficult time for everyone, but it also feels like a time that is challenging us to think about what's important. This may lead customers worldwide to rethink their consumption habits and consider buying less but better."

Fashionphile

"Fashionphile was founded in 1999. We were in business during 9/11, as well as the recession in 2008. We survived those times, and more importantly, we found that we were a real benefit to our buyers and sellers. Many of us have made significant investments in luxury accessories over the years, and during economic downturns, the ability to liquidate those items can be a game-changer. We are entering unchartered territory, but we hope that we will be able to serve the same purpose during these challenging times."