Another goodwill resale site launched as market takes off

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Diving brief:

  • A group of goodwill organizations, largely from the Midwest and West, on Tuesday launched an online resale marketplace called GoodwillFinds. Net proceeds from purchases will go to the region where the item originated, according to the group’s press release.

  • GoodwillFinds works under license from Goodwill Industries International and joined another Goodwill-affiliated site, ShopGoodwill.com, which was created in 1999 by Goodwill of Orange County. ShopGoodwill did not immediately return a request for comment.

  • The new effort is led by former Modcloth CEO Matthew Kaness, who was briefly at Walmart after the retail giant acquired the online clothing business, and also held roles at Urban Outfitters and Afterpay, according to the GoodwillFinds statement.

Overview of the dive:

The resale market is booming — second-hand clothes alone could surpass $80 billion in sales by 2026 — and “Goodwill” is one of the most recognizable names in the industry.

But although the brand is known nationally, the company is a coalition of organizations that run stores and donation centers and operate largely independently, with a mission to provide work and other forms of assistance to people with disabilities and other people in need. GoodwillFinds’ founding board includes Goodwill Industries of Southeast Wisconsin, Evergreen Goodwill of Northwest Washington, Goodwill of Colorado, Goodwill of Southern California, Goodwill of Central and Southern Indiana, and Goodwill-Easter Seals Minnesota, “with strong support and commitment from a wide range” of others, by his release.

Our new social enterprise makes it easier for conscious consumers to shop online in a sustainable way while enhancing the savings experience they love at Goodwill,” Kaness said in a statement. “I am confident that this venture will accelerate Goodwill’s mission to transform lives through the dignity of labor, raise awareness of the immense sustainability impact of savings at Goodwill, and increase net giving to every region of Goodwill. Good for the consumer, good for local communities, good for society and the planet.

Part of resale’s appeal is its reputation for sustainability through reuse and recycling, all of which are particularly important to Gen Z consumers, although the environmental impact of e-commerce is not yet fully understood.

However, the profitability of resale e-commerce is unclear. Used clothing site ThredUp’s resale-as-a-service platform could end up being more lucrative than its actual retail business; the company laid off 15% of its workforce after its losses widened in its latest quarter. Losses also increased at Poshmark, which on Tuesday announced its acquisition by South Korean internet giant Naver for $1.2 billion.

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