In today's day and age, social media can make our lives a lot easier. This is especially true when it comes to browsing and buying clothes. Recently, apps like Poshmark and Depop have made it even easier for consumers to become sellers.
By posting photos of clothes in your closet with a description and price, it becomes easy to list items and make money. This is especially helpful for teenagers like myself who might enjoy shopping a little too much because once you outgrow a size or a style, you can benefit by offering it to someone else for a reduced price. Not only are these apps profitable for the seller, but consumers benefit as well. In order to sell their products, vendors will sell for a price lower than retail.
There is definitely an advantage for teenage "influencers" or celebrities who have a large following. By posting something, their items will reach a larger audience than someone with less followers. Not only does the exposure help teenagers to sell their clothes, but many of their followers will want to purchase something just because it is coming from their favorite influencer.
These users of these apps are like monopolistic competitors. The large number of "firms" comes from the many users of the app. Most people sell similar items based on what is popular but they are all slightly differentiated, so nothing is a perfect substitute. There are minimal barriers to entry because anyone can make a profile as long as they have a smart phone and a PayPal account.
Sources:
https://www.businessinsider.com/how-to-make-money-selling-clothes-depop-2019-5
https://www.theatlantic.com/technology/archive/2019/06/depop-live-selling-clothes-influencers/591595/
I agree with the fact that many will just purchase something because it is coming from their favorite influencer. In this increasingly technological day and age, media is shared quickly and without thought. Due to this rapid transfer of information, it is easier than ever to build a fan base, create content, and make a profit.
ReplyDeleteI agree with this. With more and more access to social media and the internet, people who aren't even influencers are able to build a platform and promote themselves. In addition to advertising selling clothes, people also tend to use their social media to promote events, surveys, and their newest SoundCloud releases. Today, it is much easier to reach a large audience and it will only get easier.
ReplyDeleteThis is interesting to think about in terms of economics. I have used Depop and Poshmark to sell some of my items that I no longer wear or grew out of. While the users are like monopolistic competitors, what would the apps be considered? I think that you could consider them oligopolies. Each app takes a percentage out of a seller's price when the item is sold and when one app lowers that fee, the others must or else a user could switch the platform they list their item on. Shipping costs also vary between apps so they tend to keep them in the same a range. The main way these apps gain exposure is from advertisement from Youtubers and celebrities. I also wonder how online selling has affected second hand stores such as Goodwill who do not pay for people's items. People are instead incentivized to sell their clothes rather than donate.
ReplyDeleteServices like Ebay, Depop, and Poshmark can be beneficial as consumers are purchasing used clothes instead of supporting "fast fashion" companies. It's also interesting that each individual who sells on the app can set their own prices. A seller can make their price slightly lower than what they purchased an item for. The demand for an item might be high, and with a lower than retail price or simply lower than other competitors, a seller can ensure they have the lowest price and may be more likely to sell their item. I have also noticed that when a certain shirt design or type of jewelry becomes trendy, suddenly there are fifteen different shops all selling the same thing on Depop. At that point, a specific product is standardized and they are only set apart by their prices. Depop tends to have overpriced items, in my opinion. Also, sellers can create "bundles" with free shipping or have discounts. I find it interesting how a completely inexperienced seller can begin a business so quickly just through the help of technology.
ReplyDeleteThe internet has allowed teenagers to easily advertise and sell clothes that they either don’t want or know that they could get a profit off of. I agree with your statement that these clothing apps are like monopolistic competitors. The entry and exit of the market is easy since people just need a connection to the internet and an email to sign up. What is also desired changes over time but is usually very consistent with the fashion trend of the time and is often not differentiated by much.
ReplyDeleteI agree with this fact, and I am one person who will purchase item that the person I follow introduce. It is usually technology item such as Drone, earphone, apps, etc. I think this really help people like me who doesn't know much of technology.
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