We’re covering fundamentals this week: the difference between types of resale apps. This isn’t a primer on how thredUP is different from Grailed is different from The RealReal — rather, we’re breaking down the three different common types of categories resale apps generally fall into. Understanding these differences is going to make decision-making wayyyyyy easier on your end, so let’s dive in.

Peer-to-Peer
How it works: Buyers and sellers interact directly. Buyers purchase directly from sellers; sellers sell directly to buyers. Several peer-to-peer platforms enable offers and negotiation between buyers and sellers. These platforms require a little more work from the buyer and seller: buyers are responsible for creating their own listings, writing descriptions, taking photos, shipping their items, etc, but also generally earn more given there’s no “middle man” who does the heavy lifting. There is also greater onus on buyers to do proper due diligence: ask specifically about flaws, authenticity, etc.
Examples: Depop, Grailed, Mercari, Poshmark, Tradesy (sunsetting end of year 2022), Vestiare Collective

Consignment
How it works: Individuals mail or bring their items to a third-party business, who evaluates the items and determines whether they want to sell them. If the third-party platform or store decides to sell the item, they take care of the listing: photos, description, details about condition, authenticity. measurement, shipping, etc. Consignment terms vary — some consignment platforms and stores purchase the items upfront (ex: Rebag), while others only pay the original owner a percentage if/when the item sells (ex: The RealReal, thredUP). Buyers purchase items directly from the third-party business, not the original owner. Consignment models are generally lower effort options for both buyers and sellers, but there is a higher level of effort for the actual business processing the consignment (listing, inventory management, shipping, etc.)
Examples: Fashionphile, Rebag, The RealReal, thredUP; local brick-and-mortar consignment stores

Auction
How it works: Items listed “open” at a starting bid — this bid can be determined by an original owner or a third-party. Auctions sometimes run for a specified period of time (ex: one week), but not always. Interested buyers can set a maximum price they are willing to bid for an item. Some auction sites support a “buy now” option, which enables a buyer to purchase the item at a higher price, bypassing the auction.
Examples: 1st Dibs, eBay; most estate sales