The spotlight has recently shifted towards the second-hand retail market due to increased consumer confidence in purchasing pre-owned items, driven in part by the fashion industry’s environmental impact. It is projected that the global resale market, also known as recommerce, is on track to reach approximately $350 billion by 2027.
Nevertheless, finding second-hand items, particularly in Latin America, remains a challenge. Some startups are seizing this opportunity to infuse technology into the commerce chain, making it easier for retailers to accept and sell products and streamline the movement of goods to new owners.
In this endeavor, companies like Devolut and Reversso are addressing returns, while Vopero, based in Uruguay, focuses on resale. Vopero, which translates to “their virtual closet” in Spanish, was established in 2020 with the goal of encouraging a new generation of Latin American consumers to prioritize second-hand choices, as explained by Vopero’s co-founder and CEO, Alejandro Esperanza.
Esperanza, along with co-founders Maggie Ferber and Ignacio Cattivelli, is targeting Latin America’s $40 billion resale market. They describe their approach as “resale-as-a-service” and have created a comprehensive solution.
Their proprietary technology streamlines the processing of a large volume of products within a full-service resale fashion marketplace. Vopero essentially handles everything for sellers, who can leverage a multichannel approach to market their available items. The platform also provides personalized online buying and selling experiences, along with insights into demand and sales.
Here’s how it operates: Sellers download the Vopero app and request a Vopero kit containing a bag with a QR code, capable of holding around 30 garments. Once the bag is filled, the seller scans the QR code to schedule a pickup from their location. Similar to ThredUP, Poshmark, and The RealReal, Vopero manages the garments, uploads images to the platform, and allows sellers to monitor the sales process.
Currently, it takes up to a week for garments to appear on the platform, but the company advises sellers that it could take up to three weeks. On average, items take about 15 days to sell on the site.
Sellers are notified when their items sell and can transfer their earnings to a bank, donate them to local foundations, or make purchases on the platform. Unsold garments are either donated for a direct impact, upcycled, or recycled, with reasons provided to the sellers.
Meanwhile, buyers can access Vopero online or via iOS and Android apps to discover second-hand clothing and accessories from well-known brands such as Zara and Prada. Users can search by brand, size, color, and other criteria.
Ensuring the safety of users is a top priority for the co-founders. Maggie Ferber emphasized, “Consumers are looking for a solution for their closets. In that sense, what we built attends to the needs of the security and safety needed for us dealing with it all, especially the payments. That way, there is some trustworthiness attached to the brand as we sit in the middle between buyers and sellers.”
Vopero essentially operates as a consignment store, earning a percentage of the sale when items are sold. The average take rate is 60%, though it varies based on the type of item being sold. For instance, Vopero’s take is lower for high-end handbags.
Currently, Vopero serves customers in Uruguay and Mexico, with a significant user base primarily through the app. The company saw almost 400,000 app downloads in the past year, processed over 1 million unique garments, and achieved annual sales exceeding $5 million. The company is also on track to become profitable.
This growth has attracted new venture capital funding, with Vopero recently securing $4 million in funding, led by Cencosud Ventures and joined by existing investor Grupo Axo. To date, Vopero has raised $10 million in venture-backed funding.
The capital will be allocated for three primary purposes:
Growth: Vopero plans to launch in Chile by the end of the year and aims to place its items in physical retailers’ “corners,” with QR codes for online access. The goal is to establish 40 such corners in Paris stores over the next 18 months.
Franchising: The company intends to accelerate its franchising program in physical department stores, with at least 20 franchises in Mexico by year-end. Vopero already has some of its resale items in stores in Mexico and Uruguay, all of which are already generating positive EBITDA.
Awareness: Vopero seeks to promote the adoption of resale practices among top fashion brands and employs over 450 influencers showcasing their closets on the app.
In Alejandro Esperanza’s words, “We want to be perceived as an option that goes in the same way as accessible fashion, but with a sustainable approach. We want to gain not only our generation that targets each other to purchase these kinds of platforms but for them to understand the impact of fashion, and how they can change the world through fashion.”
