I wanted come up with my own ideas for how to address user wants and needs before looking at what other apps were already doing.
Goals
For sellers:
Meaningfully reduce the time and effort associated with a sale
For buyers:
Provide an enhanced online secondhand shopping experience
Six initial features ideated
Limitations
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Buyers and sellers would still need to meet in-person, or do porch pick-up, for the inspection and sale
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No control over no-shows
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No control over buyer failing to purchase on inspection, despite item being as described
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The app would rely on sellers to remove their listing
I found in online fashion resale, outside of Canada, there are two dominant business models, peer-to-peer marketplaces and managed marketplaces (aka consignment).
Peer-to-peer marketplaces
Sellers list their items and the platform serves as an intermediary between the buyer and the seller. The platform handles the payment, processes refunds for items not as described, assures authenticity (in the case of luxury items), and specifies the shipment terms. In return, the platform takes a modest commission off the sale.
>> Grailed was named during my user research; one respondent said his friends used it.
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Luxury brands only
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Men's fashions only
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Luxury brands only
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Women's fashions only
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Luxury brands only
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Women & men's fashions
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All brand tiers
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Women's, men's, kids', & home
Leading peer-to-peer marketplaces
Managed marketplaces
AKA online consignment; the platform takes possession of the items, lists and photographs them, verifies their authenticity, and takes a more than modest commission on sale of the item.
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Luxury brands only
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Women & men's fashions
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All brand tiers
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Women and kids' fashions
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Luxury brands only
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Women's, men's, kids', & home
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Luxury brands only
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Women's fashions only
Leading managed marketplaces
Note: Vestiaire Collective allows users to both post their own items (peer-to-peer) as well as sell their items on consignment (managed marketplace).
I immediately ruled out a consignment business model given their higher cost structure: inventory storage and human capital to list/photograph items. However, the peer-to-peer marketplace was much like online classifieds except required a willingness to purchase online (from buyers) and to ship (from sellers). I went back to my user research and considered whether users would favour modifications to an existing meet-in-person model or a new shipping business model:
Sell-side
Pros
Clear win on the sell-side: Sellers have limited contact with buyers, they just list the item, respond to item-specific questions, if any, and ship.
Cons
None if sale goes as planned. Risk of buyer filing an illegitimate misrepresentation claim and having the item returned to them.
Buy-side
Shoppers are assured items are as described and have greater selection (given not limited by proximity of location).
Cons
Buyers are not able to try on items before purchase (nor return) but they can always re-list the item.
Conclude that a peer-to-peer business model (transacting online) is better aligned with user preferences.
So now that I decided to pivot to a peer-to-peer marketplace (over an online classifieds business model) I wanted to take a closer look at the competitive landscape in Canada to see where there was an opportunity for a new player to enter the market.
Opportunity exists
After looking at leading fashion resellers and their operations in Canada, I found that currently:
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Only two fashion resellers are fully operational in Canada (i.e. where users can both buy and sell through): Grailed (men's only) and the Upside (luxury, new and founded in 2015 in Alberta).
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Users, based in Canada, can only shop online for non-luxury resale fashions on ThredUp.
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There is not an online fashion reseller that accepts women’s non-luxury items for sale, from users based in Canada.
There is an opportunity in the Canadian market for a new entrant to focus on the buying and selling of women’s pre-owned non-luxury fashions.
Now that I had changed my business model (to transacting online & shipping from transacting offline & meet-in-person) and knew where I wanted to fit myself within the market (non-luxury fashions), I looked to revisit my product goals and app features.
Revised goals
For sellers:
Meaningfully reduce the time and effort associated with a sale
New: Meaningfully limit interaction with prospective buyers
For buyers:
Provide an enhanced online secondhand shopping experience
New: Provide assurance over the integrity of listings
Final features
Unchanged
Replaced
New
With the change to a shipping business model, I added two new features, which replaced the 'specific meeting options' feature:
Limitations of solution
Mitigated by:
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Buyers cannot view and try on clothing before purchasing.
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The buyer will have the option to re-list with no commission taken on re-sale.
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Items that are as described, but disliked for whatever reason, are final sale.
Mitigated by:
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Platform operates on the basis that buyers and sellers are acting in good faith (as to not be overly burdened by misrepresentation claims).
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To sell or make a purchase the user must have an account.
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The platform reserves the right to ban user access for actions contrary to established best practices.
Mitigated by:
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User-generated content so can’t control what users post.
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Users can report listings & sellers that go against established best practices.
Target Market
Fashion-conscious women in their 20s and 30s
Product
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Fast fashion to contemporary brands
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Apparel only (initially)
Vibe & Values
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Fashion forward
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Eco-conscious
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Hip
Name & Meaning
1. Selling clothes is a project for sellers.
2. Hunting for deals is a project for shoppers.
3. Extending the life of clothes is an environmental project.