As demand for thrift fashion grows, eBay hopes a two-pronged strategy will defend its market position

With consumer demand for second-hand fashion surging, e-commerce platforms that have helped create the thrifty online economy are trying to tempt specific audiences in hopes of getting to the top.

Last month, eBay launched a campaign targeting British sellers, cutting fees for selling clothes on the platform to zero in a bid to overtake rivals such as Vinted and Depop, while attracting sellers with a new brand campaign.

In the US, the platform also faces ThredUp, Poshmark and TheRealReal. According to Nazia Du Bois, director of brand and marketing at eBay UK, the increased demand for digital resale is a “rising tide that lifts all boats”.

“We want to make sure the circular fashion economy continues to drive forward. Anything we can do to help this is good,” she added. Her latest campaign, “What to Wear with Something to Love,” was created by marketing agency Dept and encourages fashionistas to throw away old gear and refresh their wardrobes.

Of course, eBay would like to see its boat float a little higher than the competition.

Internal eBay data shared with Digiday showed that the number of clothing and footwear items with the keyword “used” in the listing title increased by 400% between March 2023 and March this year, although a spokesperson declined to reveal the baseline number of apparel products sourced from there was a sale. But its proposition as the original, largest and most diverse vintage and second-hand fashion market has been under siege in recent years.

In Europe, Vinted has started to gain momentum, reporting a profit for the first time in its history in the first quarter of this year, according to its latest set of quarterly earnings. In the United States, ThredUp has not yet crossed this milestone, but its management expects to do so within the next twelve months; Statements made to investors show that orders increased by 9% in the first quarter, and the company wants to differentiate itself by investing in artificial intelligence-based search.

Vinted and ThredUp are successfully reaching younger consumers by using social media platforms like TikTok and Pinterest to increase their presence, said Blair Zimelis, director of consumer strategy at The Marketing Arm, an Omnicom agency specializing in cultural strategies.

She said much of the increase is due to consumer inflation and affordability concerns.

“Beloved clothing makes luxury items accessible, especially as prices for new luxury goods continue to rise. “Consumers are turning to second-hand clothing to find these products at a lower price while still making money on second-hand items,” Zimelis told Digiday.

Du Bois agrees that the demand for second-hand clothing is driven by concerns about the cost of living, although he also cites concerns about sustainability. “It works in two ways,” she said. “The average person in the UK has really felt the cost of living crisis in recent months. And people are more aware of the entire supply chain behind their consumption decisions.”

But unlike its youth-focused rivals, said Anna Pompilio, a cultural strategist at branding agency Marks, eBay is “the granddaddy of the online second-hand retail space.” And while macroeconomic conditions are favorable, “the climate surrounding eBay has changed,” she said.

eBay is trying to adapt to this climate; earlier this month, it announced a high-profile partnership with the Met Gala that aimed to capture the attention of fashion-forward Zoom enthusiasts. Du Bois said she is focusing on paid social and influencer partnerships in addition to TV and audio channels, as well as TV, video on demand, audio and digital viewing, although she declined to reveal how much budget was allocated to each channel.

But eBay doesn’t just want to improve its fashion credentials to distance itself from the competition. Clothing allows you to buy other items on the site, said Du Bois, who cited internal data that showed users who came to the site to buy clothes were more likely to come back for other products than users who arrived via a different route.

On eBay, 47% of used items sold in the UK are clothing. But ensuring breadth and depth of assortment is key to outlasting smaller rivals and turning casual customers into repeat customers.

“Fashion is a very important goal category for us. “When people come to eBay to buy fashion, they are more likely to browse other categories as well, moving from buying a sweater or dress to looking at something in home and garden or something in parts and accessories,” she said.