10 years ago a re-commerce private industry got started with the business of used clothing, accessories and items. They placed all these items for online sales and are headquartered in Vilnius, Lithuania since 2008.
When was it established?
The company was started by Milda Mitkute and Justas Janauskas in 2008. Both got the idea to start with it while working on a prototype site mainly designed for Lithuanian women to trade their clothes.
They follow up with the marketing and promotional strategies after hiring a couch surfing guest of Janauskas and made a decision to expand the business in Germany under the name Kleiderkreisel.
The company then established its base in the United States in 2010 being called Vinted.
They grabbed attention from people and were invested by Burda Principal Investments, Insight Venture Partners and Accel Partners.
In 2012, they made a launch of a mobile app with Lemon Labs and went up in sales level with up to 30%.
From where do they earn a profit?
The company most likely earns a small amount by charging “service fee” per purchase to buyers plus they also put some charges on sellers every time they go for “push” their listings to the top of the catalog.
What is so special about the site?
The site is serving more than 20 million members with around 15 thousand members joining each day.
They have the products for men’s and children’s clothing in around 10 countries and are on a mission to make second hand the first choice worldwide.
We can say it is a platform that opens all the closets in the world. Today 4 million women are actively buying, selling and swapping clothes on Vinted each month.
Now they have worked on changing business models under which they are now planning not to take a cut of any items people sell on their website thus placing a step ahead from the eBays of the world.
This has made a business rise of 230% thus turning to $360m of sales between January and December 2017 with company revenue growing 5x to almost $14 million. It is predicted to go for $500,000,000 in sales in 2018.
Huge Demand of Re-Commerce Market 2019-2025