ReUpp rethinks resale – WWD
ReUpp is a start-up with a different take on sustainability and the resale market.
Launched in August 2021, ReUpp’s software technology allows customers to see what they can resell an item for – before buying it for the first time.
“There’s so much friction in the consignment business as it stands now, but 79% of Americans who haven’t sold something are willing to,” said Lauryn Vaughn, Founder and CEO. from ReUpp, citing research from Thred Up.
Vaughn said he created ReUpp “to change consumer behavior from consuming to thoughtful purchasing by getting buyers to think about resale value at the time of first purchase and knowing they can give it a second home s ‘they decide later’.
“Historically, if people decide to resell, it’s a hassle, with a financial incentive that may or may not be worth it, and they have to wait for their item to sell – if it sells – for them to cash out. “, Vaughn said. , who also founded The Resale, Canada’s largest online luxury retailer. “ReUpp provides a guaranteed resale price even before they buy.”
ReUpp is live on luxury brand Smythe, but Vaughn said there are about 15 brands “in our sales funnel that we’re looking to launch this year.” She also said that ReUpp’s technology is licensed to other resellers in the luxury and furniture space, including Luxe Du Jour, a Canadian luxury online store for shopping, as well as shipping, rental and restoration of handbags.
Sonya Weisberg, Marketing and E-Commerce Manager at Smythe, said ReUpp’s technology adds “a level of durability to Smythe…While our parts are designed to last a lifetime, a lifetime is long, we can so now make it easier to find those second home pieces.”
By partnering with a brand, ReUpp knows when something is purchased new. ReUpp generally allows redemption within 12 months of the initial purchase, although Vaughn said that with less seasonal luxury goods, a longer period could be considered, up to 18 months. If someone wishes to return an item after the deadline has expired, ReUpp will connect the buyer with a reselling partner, but cannot guarantee the repurchase rate any longer.
ReUpp handles ‘reverse logistics’, which means it provides the packaging and shipping label and pays for the shipment of items to its offices, located in Austin, Texas, and Calgary, Canada. .
“We receive it. We confirm it. We authenticate it and check for significant damage,” Vaughn said. Then ReUpp pays customers and handles the resale, listing the items on marketplaces like Poshmark or eBay.
In last year’s pre-seed funding round, ReUpp raised $750,000, including investments from The51, a women-focused fund; Jonathan Greller, President of Digital Enterprises at Marquee Brands; Ken Pilot, former Gap, Ralph Lauren and J. Crew executive who invests in technology to serve brands and retailers, and Tom Williams, an angel investor who manages venture capital funds. ReUpp is looking to close additional financing in the first quarter of this year.
According to Vaughn, ReUpp incentivizes the initial purchase since customers know they can get money back and can build customer loyalty to the brand. “It helps take away any post-purchase guilt,” Vaughn said. “Customers know they can love a piece and then it can have a second, third or even fourth life.”