Niche Resale Models Find Profits in Luxury Goods Authentication Expertise
-
Resale market profitability is emerging in niche areas like luxury goods where authentication costs are lower due to expertise. Companies like myGemma and Hardly Ever Worn It focus narrowly on specific high-end brands.
-
These niche resale companies concentrate on exceptional customer service rather than expensive marketing to acquire and retain repeat customers.
-
M.M. LaFleur has found its corporate resale program mostly retains existing customers rather than acquiring new ones, with shoppers spending 3x in store credits.
-
Successful resale models are strict about their focus areas where they have expertise, avoiding low-price items with thin margins after authentication costs.
-
For now, concentration on highly specific product types seems key to making resale economics work, more so than a broad selection across many areas.