In the fast-paced world of fashion resale, understanding the nuances of commission rates and the array of services provided by various marketplaces is paramount for success. As a professional seller, navigating through these platforms requires careful consideration of fees and the level of support offered. Let’s address some questions you might have as a resale business looking to expand your customer base: How does marketplace pricing work? What are the commission rates for professional sellers across major fashion marketplaces? What services are provided to resale businesses selling on marketplaces?
Fashion resale marketplaces utilize various types of selling fees to sustain their operations and provide services to sellers. Understanding these fees is essential for sellers to calculate their potential profits accurately. Let's explore the different aspects of selling fees on secondhand marketplaces:
Secondhand marketplaces typically utilize two primary business models for selling fees: fixed fees and commission rates. Fixed fees are flat charges applied to each listing, while commission rates are a percentage of the final sale price. In some cases, marketplaces also impose payment fees, especially for international sellers. For instance, Grailed charges additional payment fees for international transactions.
Moreover, selling fees can vary based on the seller's location. For example, Joli Closet imposes a €30 fixed fee for sellers outside of the EU and an €8 fee for sellers within the EU.
Marketplaces take a commission rate to cover various operational costs, including:
By charging a commission rate, marketplaces can sustain their operations, invest in platform improvements, and offer valuable services to sellers. All these services represent costs that professional sellers do not need to incur, and are thus a viable source of saving.
You might be wondering: is a 20% commission too high? 20% is the average commission rate taken by marketplaces to individual sellers. But for businesses, they offer more competitive selling fees. The average commission rate for professional sellers and entrepreneurs on fashion resale marketplaces typically ranges from 9% to 15%. However, this rate can vary significantly depending on the marketplace and the type of items being sold. In some cases, commission rates may be lower for specialized or luxury items.
If you're looking for specific details on selling fees for each marketplace, the FAQ section of their websites is the best place to start. Here, you can find comprehensive information about the fees charged, payment methods accepted, and any additional costs associated with selling on the platform.
In the following sections, we'll provide detailed insights into the selling fees for eight major fashion resale marketplaces: Vestiaire Collective, eBay, Grailed, Joli Closet, The Vintage Bar, Vinted, Libas, and Her Age.
At Oly, we also gathered this information into a digestible guide for you to navigate the marketplaces landscape easily, and it’s downloadable here.
Vestiaire Collective prides itself on offering a premium experience for professional sellers in the luxury resale market.
Their current commission structure for Professional Sellers has two commission rates:
Their commission rate ranges from 12% and 16% for professional sellers, and you can access more details about the selling fees and services for resale businesses on their website here.
Beyond competitive commission rates, they provide a range of services to enhance seller satisfaction:
Learn some Tips and tricks for professional resellers to grow your sales on Vestiaire Collective here.
eBay charges two main types of fees - a listing fee (also called “insertion fee”) and a final value fee when your item sells. For a monthly subscription, you can also run your own eBay Shop. The fees and benefits for shops vary depending on the type of subscription you choose.
The listing fee will depend on your geography but for fashion items, it typically ranges between 9% and 15%. You can find more details on the Ebay website and visit your local eBay marketplace.
Learn more details about creating Stores on eBay in our detailed article here.
As one of the largest online marketplaces, eBay offers a wide range of services tailored to professional sellers:
Grailed operates on a commission-based model, where the platform takes a percentage of the final sale price as commission. For professional sellers, Grailed offers a flat 9% commission on all sales. While US and Canada-based sellers can benefit from various free payment solutions, internal sellers have to use Paypal payments and pay for an additional payment processing fee set by Paypal, which is usually around 3%.
Grailed caters specifically to streetwear and contemporary fashion enthusiasts, offering tailored services for professional sellers:
Discover why Selling on Grailed is worth it for professional fashion resellers
Joli Closet offers a flat 15% commission rate for all professional sellers (vs. 18% for private sellers), with an additional fixed cost per sale that depends on the location of the seller: a minimum fee of 8 euros for France, 15 euros for Europe excluding the United Kingdom, 30 euros for the rest of the world.
Joli Closet offers professional sellers in the luxury resale market a range of premium services to enhance their selling experience:
The Vintage Bar usually takes a 15% commission rate on the listed prices of professional sellers. However, everything regarding commission will be settled individually once you apply to become a professional partner.
This commission will be applied to adjust the final listing price, with a markup applied on the platform to cover costs such as transaction fees, marketing, and quality control (Q&C), among others.
The Vintage Bar caters to vintage fashion enthusiasts, offering professional sellers a range of specialized services:
Vinted recently launched a new service “Vinted Pro”, opening their platform to resale businesses and entrepreneurs. And is the most competitive platform in terms of selling fees for professional sellers: it’s free, they do not charge a fee for selling on Vinted, offering secondhand businesses an affordable platform to showcase their items.
Instead buyers are required to pay a buyer protection fee as a percentage of the goods that they buy. This can be between 3% and 8% of each purchase.
Pricing your products effectively on secondhand marketplaces is crucial for maximizing profits while remaining competitive. Here are some key strategies to consider when setting your prices:
Keep in mind that on many secondhand marketplaces, sales often occur after a negotiation process between the buyer and seller. Therefore, it's essential to set your initial price with some flexibility, allowing room for negotiation while still protecting your margins. Consider pricing your items slightly higher than your target selling price to accommodate potential discounts during negotiations. But not too much to remain competitive :)
In the crowded landscape of secondhand marketplaces, visibility is key to attracting potential buyers. Pricing your products competitively can help improve your listing's visibility and increase your chances of making a sale. Price competitiveness is often a variable taken into account in the visibility algorithms of marketplaces.
Research similar listings on the platform and adjust your prices accordingly to remain competitive. However, be cautious not to underprice your items significantly, as this could negatively impact your margins.
When pricing your products, be sure to account for any applicable marketplace fees, such as fixed fees or commission rates. These fees directly impact your bottom line and should be factored into your pricing strategy to ensure you maintain your desired profit margins. Additionally, if they are not supported by the marketplaces themselves, consider other selling costs, such as shipping fees and packaging expenses, when setting your prices.
Stay informed about market demand and trends to make informed pricing decisions. Research popular styles, brands, and trends within your niche to identify which items are in high demand and adjust your pricing strategy accordingly. Additionally, monitor competitor pricing and sales trends to stay competitive and adjust your prices as needed to attract buyers.
Ensure your product listings include clear and detailed descriptions, including information about the item's condition, size, brand, and any unique features. Transparent and accurate product descriptions can help justify your pricing and build trust with potential buyers, increasing the likelihood of a successful sale.
By incorporating these strategies into your pricing strategy, you can effectively protect your margins while maximizing your sales potential on secondhand marketplaces. Remember to regularly review and adjust your prices based on market dynamics, buyer feedback, and sales performance to optimize your profitability over time.
In addition to understanding commission rates, managing inventory across multiple platforms can be a daunting task for fashion resale businesses. At Oly, our cutting-edge inventory management solution is designed to alleviate these challenges by:
Now that you know everything about the selling fees and serviced provided by fashion resale marketplaces for professional sellers, we hope you are convinced that leveraging their audience and marketing effort is a good investment for growing your business! If you need more convincing, read our article here about the benefits of selling on multiple marketplaces.
Want to get a recap of all key information for professional sellers on fashion resale marketplaces? Download Marketplace Guide Now
