The distinction though is that subway ads require an actual money outlay whereas coupons don’t cost anything up front, they just reduce profit margins on funds coming in. If I saw Tradesy spending on subway ads I might feel more comfortable that they weren’t on the verge of going under.
Anyone Ever Buy and/or Sell on Tradesy?
- Thread starter iluvmybags
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Like we all suspect, something negative is brewing with these everyday promos and forced returns on sellers. Remember, Tradesy was bragging about becoming profitable like when? by the end of 2017? never happened. Last time too frequent promos and forced returns (without policy adjustments) led to fee increase. Sellers soaked it up and increased their prices but stayed.
But there's no easy way for Tradesy to get more cash and improve bottom line any more. they became huge warehouse with dogs running loose. if Tradesy increases fees again and no longer takes returns (it's almost official now) majority of sellers will just leave. And now there are places to move to. PM really took off and Mercari appeared. Once sellers will bring their interesting offers there, more mature audience will follow. It's not like buyers are hanging on particular platforms 24/7, they are googling the item and it pops up on a platform, then they go for it.
All things given (inefficient management, wrong strategy including taking returns and acquiring site with tons of pro- re-sellers, fees increase that led to slower sales, now rejecting returns) Tradesy never met its goals.
VCs may just exit, like sell stakes to private equity firm that will chop it off and liquidate. Turning around the company by firing Tracy and team is another way to go. that's unless Tradesy is too deep already to be fixed. VCs don't throw good money onto bad money.
But there's no easy way for Tradesy to get more cash and improve bottom line any more. they became huge warehouse with dogs running loose. if Tradesy increases fees again and no longer takes returns (it's almost official now) majority of sellers will just leave. And now there are places to move to. PM really took off and Mercari appeared. Once sellers will bring their interesting offers there, more mature audience will follow. It's not like buyers are hanging on particular platforms 24/7, they are googling the item and it pops up on a platform, then they go for it.
All things given (inefficient management, wrong strategy including taking returns and acquiring site with tons of pro- re-sellers, fees increase that led to slower sales, now rejecting returns) Tradesy never met its goals.
VCs may just exit, like sell stakes to private equity firm that will chop it off and liquidate. Turning around the company by firing Tracy and team is another way to go. that's unless Tradesy is too deep already to be fixed. VCs don't throw good money onto bad money.
I think a lot of these promotions started when Tradesy raised their commissions though - It costs so much to sell on Tradesy, they should be able to afford it.
When Tradesy first started, the company's promo was WAY better. It was like $200 off the purchase of $700 or more. They slowly did away with that and started their $100 off $800+ purchases. They used to run those once a month. Then over the years they consistently raised their commission.
At almost 25%, with sellers doing basically all the work, I don't know how they can afford to go any higher. Most consignment shops that I know take 30% and it requires the seller to do no work and not have to deal with returns.
The frequent promotions that everyone is referring to only started about 2 months ago. Everyday there is a new promotion/coupon. The last commission increase was almost 2 years ago, no? I don't think it has anything to do with the commission. I've noticed that traffic is slower. I haven't been able to find "great" deals like I used to. All of the good sellers are gone. Now when I go through the website, I can only find overpriced goods. Everyone is trying to accommodate for the high commission rate, so I might as well just buy from the boutique (might even be cheaper there TBH)!
I wished Tradesy had used the company's funds better instead of absorbing Shop-Hers and that closet organizing company. The latter company, I still have no idea why they did that. Most sellers only have a few items that they want to clear out (there are a few resellers on the site but resellers for sure do not need this service). This isn't a Kim Kardashian helping to clear out the closets of Paris Hilton type situations. I just can't wrap my head around why Tradesy acquired this. It just seems like a waste of VC.
At almost 25%, with sellers doing basically all the work, I don't know how they can afford to go any higher. Most consignment shops that I know take 30% and it requires the seller to do no work and not have to deal with returns.
The frequent promotions that everyone is referring to only started about 2 months ago. Everyday there is a new promotion/coupon. The last commission increase was almost 2 years ago, no? I don't think it has anything to do with the commission. I've noticed that traffic is slower. I haven't been able to find "great" deals like I used to. All of the good sellers are gone. Now when I go through the website, I can only find overpriced goods. Everyone is trying to accommodate for the high commission rate, so I might as well just buy from the boutique (might even be cheaper there TBH)!
I wished Tradesy had used the company's funds better instead of absorbing Shop-Hers and that closet organizing company. The latter company, I still have no idea why they did that. Most sellers only have a few items that they want to clear out (there are a few resellers on the site but resellers for sure do not need this service). This isn't a Kim Kardashian helping to clear out the closets of Paris Hilton type situations. I just can't wrap my head around why Tradesy acquired this. It just seems like a waste of VC.
My guess is neither acquisitions cost any cash outlay. It happens a lot more in startup land than the public realizes.
True, they promised more promos as a justification for fee increase. They burnt this cash, sales slowed down, traffic (likes/inquiries) dried up. I also don't see Tradesy spending much on SEO. if I google my items from Tradesy they may appear in image search, not shopping. Personally, I still get sales because I promote my items on social media. BTW Tradesy could use this channel too, but I haven't seen much activity in this area since 2015.
I don't promote my items. I don't want to have to promote my items. That is why I use a selling platform. My Tradesy sales were very sparse at the beginning of this year, but this month, nearly half of all my sales were on Tradesy.
I know,me too, I want platform to do the job for hefty 23%. initially, I'm responsible for high quality images and description, packaging and shipping. then traffic dried up, so I took care of promoting my items in social media. now returns are not taken, I'm responsible for handling returns in who knows what condition. The big Q what I'm paying 23% for? and if they increase further, because they are obviously struggling, who's going to stay there?
That's what killed Tradesy. It filled up FAST with garbage listings, multiples of knock offs and the same items in different colors and sizes. It killed the unique market of vintage items that built Tradesy in the first place and buried the small seller who were much more customer service oriented then these huge sellers Tradesy courted. They are the ones with their low quality, poorly described items that boosted their returns to ridiculous levels. The small seller knows what they are selling because it belonged to them, they hold the item in their hands and provide accurate measurements for fit and will tell you if the fabric is sheer or lined. The large sellers just drop ship and have no idea about the quality or the rise or anything else and if every time you shop on a site you just see the same items - you are going to get bored and go elsewhere. Online sales browsing is much more fun and enticing if you are finding one of a kind gems (like couture) that you CANT buy in stores anymore. Switching from the platform to being just another clothes marketer is what killed Tradesy's original base, tripled their returns and sucked their money dry.
Exactly, garbage listings lead to non-liquid returns. Like 1 million of cheap canvas LV, some fake, some SNADs, some come from China (and Tradesy is OK with it). then it all comes back as returns. Tradesy is a platform for these bulk sellers now. and it is at the expense of small responsible sellers (we pay 23% fee, and our returns are not taken any more).
Yet Tradesy positions themselves like sustainable women-to-women service for luxury goods.
As an example, I was browsing accessories 2 days ago when Tradesy had $1000 off promo. there are literally 50 pages of Rolex watches from pro sellers. I can't even find anything in this mess .
I sold a pair of Chanel boots on 4/29, they finally released my earnings but now its going to take an extra 7 to transfer. Literally a month for our earnings to release; when I was selling a lot a few years ago I remember the fee was a lot less and $$ was received withing a couple to a few days but now almost a month! Sheesh. Will never use Tradesy to sell anymore, I'll stick to ebay lol
It will take a lot longer than 7 days to get your money - more like 2.5 weeks. The fine print days 7 BUSINESS days.[emoji853]
It will take a lot longer than 7 days to get your money - more like 2.5 weeks. The fine print days 7 BUSINESS days.[emoji853]
I transferred money on 5/7. It hit paypal on 5/13, so less than a week.
I just got money released on a 4/29 sale too. Delivery date was 5/3, so it took 13 days.
I've been making as many sales on Tradesy as ebay so I don't feel I can give it up yet.