Fashion Resale Site Sellpy Expands to 20 New Markets with H&M Support – Sourcing Journal
The H&M Group and the online second-hand clothing store Sellpy are becoming increasingly intertwined as the days go by.
The fast fashion giant continues to invest in the Swedish resale platform, this time by providing the logistical support to support expansion into 20 more European countries including Belgium, Bulgaria, Croatia, Denmark, Estonia, Finland, France and others. The new investment extends Sellpy’s online presence to a total of 24 countries through a new website, sellpy.com. Currently, the new markets can only buy goods from the platform and cannot yet use their sales function.
Users with access to all of the platform’s features can order a bag for 1.95 euros ($ 2.36), wrap it up with the items they want to sell, and send it back to Sellpy. From there, the company lists every item it can sell, sets a price, and takes care of the post-sale logistics. In order to maintain a certain standard of quality, Sellpy urges sellers to only include items that can be sold for more than 5 euros and to refrain from shipping clothing from cheap brands. It recommends labels like Nike, & Other Stories, Monki, Ralph Lauren, and Filippa K.
The partnership offers advantages for both sides, but especially for the startup, which can now benefit from H & M’s global presence and finely tuned infrastructure. A strategic partnership with the global supply chain of the H&M Group gives Sellpy logistical support and access to a modern storage unit in Poznań, Poland. All processes related to Sellpy’s sales service and e-commerce for used items – including distribution, garment quality control and order processing – are carried out by the H&M Group’s Eastern Europe logistics team.
The H&M Group began investing in the resale business in 2015 and became majority owner. Sellpy expanded into Germany in 2020, followed by the Netherlands and Austria earlier this year. The two companies have since explored further synergies. In 2019, the H&M Group’s & Other Stories brand launched a test pilot program of a program that allowed users to purchase used clothing through the & Other Stories brand’s website and commissioned Sellpy to build its sales platform.
To date, H&M has invested 20 million euros ($ 24.38 million) and owns around 70 percent of the company, according to Reuters.
Sellpy is now the second largest online shop and sales service for used items in Sweden.
“We are delighted with Sellpy’s continued international expansion, which we support with our strategic partnership and as owners,” said Nanna Andersen, Head of H&M CO: LAB, the investment arm of the H&M Group. “We always strive to offer our portfolio companies added value in order to support them in realizing their ambitions.”
Both companies focus their efforts on keeping fashion on the move longer.
The $ 50 billion resale market price makes now a good time for Sellpy’s global expansion. In April, the Berlin e-commerce giant Zalando followed suit and expanded its resale platform to seven new markets, including Austria, the Czech Republic, Denmark, Finland, Ireland, Italy and Sweden.
The segment’s success has also inspired other e-commerce companies to move into reselling. This month, Etsy signed a $ 1.625 billion deal to buy resale startup Depop and unite both peer-to-peer marketplaces. Online personal stylist service and retailer Stitch Fix also announced an investment in an upcoming “show-like model” during a recent conference call.