Is Tradesy the next resale company to fold?

by

UPDATE: I was just forwarded an email that breaks down Tradesy’s explanation as to why they are accepting returns due to pricing. I will not post it here and will not mention the names of the sellers or the items as I do not want to get anyone in trouble but, it’s complete bullshit. Let me describe it for you though and you can make the call.

Seller sells a grade A condition luxury bag at a realistic, fair market price. Buyer receives and requests a refund within four days. Seller has profits removed from their account and the item is sent back. Now, I understand price shopping but if a seller commits to purchase an item, it’s a done deal. Why this is so insane is that Tradesy is justifying the return due to find it lower on other websites, NOT MARKETPLACES, but consignment stores. They are referencing the same brand and style but not the same size or condition so how on earth can they make that comparison? This makes absolutely no sense especially when you factor in they are paying for the return shipping so they are actually losing out on every sale. 

Remember when Tradesy would accept all the returns and you would still keep your cash and the buyer received Tradesy credit? Well, those days are over. In the last two weeks, Tradesy has stopped accepting returns from sellers. Let me rephrase. They are accepting the return but are no longer keeping the item and reselling in one of their three closets. It’s going straight back to the seller and the bigger issue with this latest change is the sellers had no idea this was going to happen. We’re not talking a one or two returns, some sellers have lost hundreds of thousands of dollars in sales and have received shipments like the one below back to them, without warning.

Surprise returns to a business seller on Tradesy

Accepting returns is a great thing for a business and there is no problem there but when you do not alert your business sellers you are implementing this procedure, that’s a problem.  It’s not even that they caught some of the highest volume sellers off guard and didn’t give them time to prepare for the returns but the reasons make me believe there are only two outcomes for Tradesy. First, lets explore the reasons for returns.

Condition – Returns are coming back for condition, even when the listing has spelled out any and all flaws. While condition has been an acceptable reason for a return, if all flaws are listed, why would they accept the return? Why this sucks is that a lot of sellers and buyers look on Tradesy for either used bags at a lower price point or for project bags so that whole market is going to dry up quickly and those buyers are going to move elsewhere.

Pricing – This one seriously threw me for a loop as it makes ZERO sense. Returns are coming back and marked as “The item sold price is well above what we believe is a fair market resale price”. WHAT????? The market just dictated what an acceptable price is when the buyer purchased it. Why would you accept that return? Buyers remorse is one thing but this is the most ridiculous reason for a return and again, sellers are being blindsided with these.

Payments – When I sold on Tradesy a few years ago, things we’re great. sales were up, no nonsense from lowballers and when you sold an item, you were able to receive your money fairly quickly (talking within a week). Now, it’s taking anywhere from two weeks to a full month to receive payment which unlike Poshmark (3-5 days) is I think unacceptable.

Authenticity – The claims of counterfeit items being sold or items being switched for fakes have gone way way up in the last few months and while I know they have their “technology” to authentic items listed, if I can spend 10 minutes on their site and find several counterfeits, somethings not working there.

Taxes – This is not that big of a deal because if you own your own business, it’s your responsibility to take care of your own accounting but every other platform, including Poshmark’s recent news collects sales taxes. Tradesy is the last one standing that does not and come April 15th, I see a lot of extension happening.

Discounts: Another bad sign is the amount they are offering for discounts, $150 off $1000. Never a good sign.

What’s funny is so many people have reached out saying they are having great luck with sales on the Tradesy platform right now which is awesome but I really wish they would be more transparent when making changes to their TOS.

What does all of this mean? Well, in my opinion there are two things that can happen. Either they are pushing really hard to raise another round of funding (hopefully) or this is one massive Hail Mary. Hey, whatever happened with that concierge acquisition they made awhile ago?

I never like to see companies go under and with the resale industry being as hot as it is right now, I am hoping that Tradesy has a plan because as far as selling platforms, they are one of the nicer ones. They just have to get it together and be way more transparent with their buyers and sellers.

Note: While this article is based on facts, whether Tradesy is going to fold or raise funding is just my opinion.

6 Responses
  • Ashley
    April 5, 2019

    I started selling on Tradesy when they would release your money once it was scanned in by USPS and now I feel like it takes forever to receive my money
    I’m hoping they don’t go under because I do a fair amount of sales on there but wish they would update their sellers with changes!

    • Closet Full Of Cash
      April 6, 2019

      I agree, When i sold on there a couple of years ago it was awesome but then it started going downhill, wouldn’t make sales but all the business accounts we’re killing it. I don’t want to see them go under either as the options are slim for sellers but they need to be transparent about the changes they make.

  • Raffael
    April 4, 2019

    Obviously this is a big change for the sellers, but coming from the EU, we are actually used to returns without having to give a reason at all. In the EU the current law states that buyers can cancel the purchase and return the item within14 days without reason. So, if Tradesy wouldn’t do that, it might run into trouble with competition from marketplaces from the EU.

    • Closet Full Of Cash
      April 4, 2019

      I agree and the point isn’t necessarily the fact that returns are coming back but that there was really no notice given to the sellers. For a marketplace, your TOS needs to be clear and if any changes are made, you need to send an update out to the people who will be affected before the changes are implemented.

      • Raffael Schulz
        April 12, 2019

        Yes, that probably wasn’t the finest move on their part. I think, marketplaces should always consider all sellers their partners and treat them as such. Transparency is key for trust. Especially for big changes that need enough time for adaption.

        • Closet Full Of Cash
          April 12, 2019

          Agreed.

What do you think?

Your email address will not be published. Required fields are marked *