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With tariffs creating economic uncertainty, resale companies might be emerging as winners as tightfisted consumers look toward buying used goods to save money. In its annual report, online clothing resale platform ThredUp found that 59% of consumers said they would explore resale shopping in response to tariff-induced price increases. Moreover, the US secondhand apparel market grew 14% in 2024, five times more than the broader retail clothing market.
Using AI, partnerships, and even franchising, Revenue Brew spoke with three resale companies—BaseCamp, SidelineSwap, and Poshmark—leveraging their resale models to avoid tariff hardships.
Product 🤝 Revenue
Poshmark CEO Manish Chandra is fully aware that tariffs have consumers looking to save some dough, and for his company, this means opportunity. He has pushed his revenue team, consisting of about 50 to 75 sales reps and growth marketers, to work closely with product to use AI to turn trends into growth. Chandra is betting that making Poshmark’s website easier to navigate will turn current resale interest into long-term growth.
“We are doubling down on our investment in product right now,” he said. “For us, our revenue growth is focused by investing in tech and product.”
This cross-team collaboration led to the development of two AI products: Smart List AI generates listings for sellers in seconds while Posh Lens allows buyers to search Poshmark using images.
“Whether it is merchandising, actual growth, engagement, or customer service, we have dedicated product teams that work with each of those business areas to both grow them, scale them, and optimize them,” he said.
We love Dick’s
For SidelineSwap, an online sporting goods resale platform, tariffs highlight the importance of strategic partnerships. Specifically, in 2022, SidelineSwap teamed up with Dick’s Sporting Goods to quickly grow its business while also taking advantage of demand for used sporting goods, according to SidelineSwap’s co-founder and CEO Brendan Candon.
“How do you get in front of more customers, especially as an earlier stage company?” he said. “I think we believe that there are ways to create win-win partnerships with larger partners.”
How the partnership works: Dick’s customers can trade in used sporting goods to SidelineSwap, both online and in store, in exchange for Dick’s store credit. It drives store visits to Dick’s during a time when customers are worried about rising prices. It also helps grow SidelineSwap’s profile and allows the company to stockpile inventory, which it then flips to its customers.
The partnership was expanded in 2024 and has helped SidelineSwap reach 2 million users, who have resold over $250 million worth of goods on the platform to date.
“We view this a window of opportunity to get partners we’re already working with to lean in on the partnership and grow it bigger, faster, and to work with new partners, to get people who were hesitant to embrace resale or it wasn’t at the top of their road map to rethink the prioritization of where resale fits in, because it’s a it’s a revenue driver for them too,” Candon said.
BaseCamp and franchising resale
Tariffs have made thrift stores a more appealing investment as the inventory is already in the US, and thus not subject to price hikes.
Brothers Zach and Tyler Gordon are the co-CEOs of BaseCamp Franchising, the parent company to thrift stores Uptown Cheapskate and Kid to Kid. They have designed a revenue and growth strategy built around franchising.
The Gordon brothers have taken an internal approach to expansion that relies very little on outreach. They focus on the success of existing stores to create the best pitch possible for parties interested in franchising.
According to the brand’s latest franchise disclosure document, the average Uptown Cheapskate store generated $1.3 million of sales and $188K of net income in 2024, while stores in the top quartile generated $1.9 million of sales and $354K of net income. Moreover, since 2020, the company said that across both Uptown Cheapskate and Kid to Kid, the store count has grown from 183 to over 270 today.
These numbers are partly why the Gordon brothers said 50% of BaseCamp’s growth is now coming from repeat franchisees, which has pulled the total store count of Uptown Cheapskate over 140 and boosted revenue.
“Our view is if you focus on the revenue per store, and you spend all of your time trying to drive revenue and profitability for an individual store, the number of units will solve itself because franchisees will be doing so well. They’ll be so happy; they’ll be swimming in money that they’re going to want to open new stores,” said Tyler.