Thriving In The Resale Revolution: Toad & Co's Digital-First Approach
Online Resale Strategy of Toad & Co: A Look at Their Approach
Defying the odds, apparel company Toad & Co is making a splash in the secondhand market, raking in profits through their online resale effort, Toad Again. Traditionally, brick-and-mortar stores have been considered the only profitable avenue for reselling used goods. However, Toad & Co's gradual, eco-friendly approach is proving to be a game-changer.
The company, with roots dating back to Horny Toad's foundation in 1994 in Telluride, Colorado, is no stranger to sustainable practices. Known for its Earth-friendly clothing, Toad & Co initially relied heavily on wholesale sales to retailers like REI, Title 9, and specialty retailers, accounting for 80% of its revenue. But with the pandemic and an increase in e-commerce, this figure has seen a significant decline.
Toad & Co's resale venture, Toad Again, stands out in the resale landscape. With a primary online presence since April, the company is leveraging digital technologies to create a seamless, sustainable shopping experience. Their slow and steady approach allows them to maintain control over their secondhand operations.
Their Maine retail outlet, located in Freeport, houses a diverse array of secondhand items alongside new stock. In contrast, the Portland location, established in May, prioritizes space for sorting and processing used goods. The company's resale sales have skyrocketed by an average of 113% each month since April, making it a profitable venture.
Sam Cuccaro, operations manager for Toad & Co's Maine locations, emphasizes the importance of resale for sustainable brands. With the secondhand clothing market reaching $39 billion in the U.S. last year and projected to reach $70 billion in four years, companies like Toad & Co are taking notice. Brands ranging from high street retailers like H&M to premium brands like Lululemon are jumping on the resale bandwagon, promoting their resale programs as key to their sustainability goals.
Toad & Co's approach to resale differs from many of its competitors. Instead of outsourcing to third-party platforms, Toad & Co has partnered with resale tech firm Archive to create a dedicated resale page on its website. The company's in-house operations handle receiving, screening, sorting, repair, and fulfillment of used items to ensure a high-quality resale experience.
Any unsatisfactory items undergo upcycling or are donated. Acceptable items are either sold in-store or listed for online sale, with sellers required to provide detailed information about the item's condition. Interested customers can opt for a peer-to-peer selling model, where they list and fulfill orders, or have Toad & Co manage the process.
As Cuccaro notes, the popularity of resale is set to continue, with Toad & Co's dedicated following ensuring its growth. The company's focus on sustainability, coupled with its innovative approach to resale, cements its position as a leader in the ever-evolving world of retail.
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Source: Toad & Co 'Toad Again' making waves in resale market
Enrichment Data:
Toad&Co's digital-first resale strategy highlights the potential of online models for sustainable apparel companies. Key elements of their approach include:
- A dedicated and centralized online marketplace, eliminating location barriers.
- Integration with sustainability goals, including improved carbon footprint, material sourcing transparency, and collaboration with nonprofit organizations.
- Enhanced customer engagement, underscored by direct relationships with brand fans and access to a curated collection of past-season items.
- Cost efficiency, resulting from lower overhead costs and the ability to reinvest capital in sustainability programs or customer incentives.
These strategies enable Toad&Co to bypass pitfalls associated with traditional brick-and-mortar retail, while reinforcing its ethical brand reputation in the competitive apparel market.
- Toad & Co's digital-first approach to resale, Toad Again, is revolutionizing the secondhand market, offering a profitable and eco-friendly alternative to traditional brick-and-mortar stores.
- Founded in Telluride, Colorado in 1994, Toad & Co is known for its Earth-friendly clothing and sustainable practices, with wholesale sales accounting for 80% of its revenue.
- With the pandemic and an increase in e-commerce, Toad & Co's reliance on wholesale sales has decreased significantly.
- Toad Again, Toad & Co's online resale effort, leverages digital technologies to create a seamless, sustainable shopping experience.
- Toad & Co's resale venture differs from many competitors by partnering with resale tech firm Archive to create a dedicated resale page on its website, streamlining the process from receiving to fulfillment.
- The popularity of resale is projected to continue, with companies like Toad & Co, Lululemon, and H&M integrating resale programs into their sustainability goals.
- Toad & Co's strategy includes a dedicated and centralized online marketplace, emphasizing customer engagement, cost efficiency, and collaboration with nonprofit organizations.
- By focusing on sustainability and adopting innovative online models, Toad & Co is positioning itself as a leader in the ever-evolving retail industry.
- The average growth of Toad & Co's resale sales has been 113% each month since April, making it a highly profitable venture.
- Toad's Maine retail outlet houses a diverse collection of secondhand items alongside new stock, while the Portland location prioritizes space for sorting and processing used goods.
- To ensure a high-quality resale experience, Toad & Co inspects unsatisfactory items for upcycling or donation, with acceptable items being sold either in-store or online.
- Customers can opt for a peer-to-peer selling model or have Toad & Co manage the process, with sellers providing detailed information about the item's condition.
- To stay updated on the latest trends in retail, fashion-and-beauty, home-and-garden, business, data-and-cloud-computing, sustainable-living, and more, subscribe to the Retail Dive free daily newsletter.
