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API (Application Programming Interface)

Is a software intermediary that allows two applications to talk to each other to access data.

Antique

An item perceived as having value, due to its aesthetic or historical significance, and often described as at least 100 years old.

Appraisal

Valuation of property, such as a collectible or antique, by the estimate of an authorized person. Authorized appraisers have a designation from a regulatory body. Appraisals are typically used for insurance and/or taxation purposes or to determine a possible selling price for an item or property.

Auction House

Is a company that facilitates the buying and selling of assets, such as works of art, luxury goods, and collectibles. Auction house most commonly refers to the company that is running the auction. Some large auction houses include Sotheby’s, Christie’s, Bonhams, or Heritage auctions.

Brick & Mortar

Refers to a physical presence of a business in a building or structure. Brick-and-mortar businesses are companies that have a physical presence and offer face-to-face customer service rather than e-commerce experiences.

Buyout

Also can refer to sell-upfront, when a business pays cash upfront for a product from the seller.

Circular Economy

Is an economic system that encourages the elimination of waste and the continual use of resources. In this system, the goal is to make, buy, and then resell. Products enter the system at their highest value, then after their initial use, the products are resold on the secondary market.

Commission

A fee paid out to the company for the sale of a customer’s property, which is typically a percentage of the sale price.

Commission Structure

In the secondary market, this describes the percentage the business and the customer each make from selling the customer’s products.

Condition

The state something with regard to its appearance, quality, and/or working order. In the secondary market keywords to describe the condition are like new, excellent, great, good, fair, poor, and as-is.

Consignment

Is an arrangement in which goods are left in possession of an authorized third party to sell. In this arrangement, the consignor receives a percentage of the revenue from the sale once the item has been sold to a new owner.

Consignor

A person or company that consigns goods, merchandise, etc to a shop to be resold for a profit.

Customer-to-Business Transaction (C2B)

Customers produce services and/or products for companies. Recommerce businesses rely on this model in order to acquire inventory directly from their customers.

Dealer

A person or business that buys and sells goods on the secondary market.

E-commerce

Is when a business operates in buying and selling goods over the internet. This can be done in conjunction with a brick-and-mortar store or as a substitute for not having a physical store.

Estate Sale

Also sometimes called a tag sale, it is a way of liquidating the belongings of a family or estate. The public is then invited into the home and given the first-come-first-serve opportunity to purchase any items marked for sale.

Fair Market Value

Is the price that an asset (good) would sell for on the open market. This is the term used on the secondary market to indicate the reselling value of an item.

Insurance Value

Also known as insurance appraisals are generally based on the replacement value (see replacement value definition).

Linear Economy

Is the idea when products are made, used, and then just disposed of, therefore creating waste.

Managed Marketplace

Also known as end-to-end or full-stack marketplaces, in the secondary market, this means a value-added intermediary that provides a superior experience versus a more traditional peer-to-peer marketplace. Typically managed marketplaces take on additional risk by either purchasing or holding onto inventory, therefore they have a higher take-rate (gross margin).

Offer option

Also known as quote option, in the secondary market, businesses can choose several different ways in which to pay customers for their products. The different options businesses can give their customers are buyout, consignment, and/or trade-in for store credit.

Pawnshop

It is also called pawnbroker.A store that lends money in exchange for a valuable item that they sell if the person leaving the item does not pay the agreed amount money by the agreed date and time.

Peer-to-Peer Marketplace (P2P)

Is an online marketplace (platform) that connects people in need of a product temporarily with people who have that product, but are trying to sell it. On the secondary market, P2P marketplaces include Tradesy, Poshmark, Ebay, etc.

Pre-owned

Refers to a product that is secondhand and has been previously owned by another person before being resold on the secondary market.

Pricing Strategy

Describes your commission structure depending on: the selected offer option (buyout, consignment, or store credit) by the customer; the estimated fair market value of the selected item; and the designer.

Primary Market

On the luxury fashion market refers to the clothing and accessories sold new through the major designer fashion houses.

Recommerce

Also known as reverse commerce, refers to the process of selling pre-owned products on the secondary market through physical or e-commerce distribution channels.

Replacement Value

Is the amount it would cost to replace an item with one of similar and like quality purchased in the most appropriate marketplace within a limited amount of time.

New Replacement Value - based on the idea that the item is still available somewhere else new on the primary market.
Secondhand Replacement Value - reflects the current cost to replace an item in roughly similar condition on the secondary market.
Facsimile Replacement Value - reflects the cost of recreating an item in the likeness of the original, adhering to the same quality standards and using roughly the same materials.

Liquidation Replacement Value - is the price garnered for an item that is forced to be sold under unusual circumstances (i.e. time constraints or other limiting conditions).

Resell Interface

Is a customizable interface for the secondary market designer handbags that is easily integrated onto a company’s website. With the interface, the business can choose to offer their customers the ability to sell upfront, consign, and/or trade in for store credit. On the frontend, customers can seamlessly use the interface to find their bag, describe the condition, receive an instant offer and shipping label. While on the backend, we help businesses automate pricing, shipping, and payments to their customers.

Retailer

On the secondary market refers to a person or business that sells goods/products to the public.

Secondary Market

Also known as the luxury resale market where customers can buy or sell pre-owned products.

Sell-through rate / Sales turnover

Refers to the amount of inventory that is sold within a given period of time, relative to the amount of inventory received within the same period.

Software as a service (SaaS)

Refers to a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.

Target markup

Also known as markup that refers to the difference between the selling price of a product and its cost.

Thrift Shop

Refers to a store selling secondhand clothing and/or other household goods, typically to raise money for a charitable cause/institution.

Trade-in

On the secondary market, refers to an arrangement in which goods are given in whole or, usually part payment of a purchase price.

Vintage

When used to describe clothing, is a generic term used for garments from a previous era. It usually refers to fashion created between 20 and 100 years ago (roughly from 2001 to 1921) and clearly reflects the popular trends of the era.