Online consignment shop Swap raises $20 million
December 12, 2016 01:18 PM
Online marketplace Swap.com has raised $20 million and plans to recruit and hire 200 employees for its two Chicago-area offices, as well as improve efficiently in its fulfillment center.
Swap, a U.S. subsidiary of Finland-based Netcycler, is an online-only consignment store for used apparel. This new round of funding brings the company’s total funding to more than $50 million, the marketplace says. Swedish private equity company eEquity led the funding round.
Already this year, Swap has hired 300 employees, for a total to 500, says Juha Kopenen, CEO of Swap.com. Swap is on track to have ”tens of millions” in sales in 2016, up from $7 million in 2015, Kopenen says.
Internet Retailer recently featured Swap.com in its annual Hot 100 List for the marketplace’s unique business model. The online consignment store has 1.5 million items available for purchase, more than double the 543,000 items it had 11 months ago. And since each item is preowned, that’s 1.5 million unique SKUs.
Buyers send their preowned items to Swap, which checks to see if the product is in good condition, cleans and photographs it, and then displays it on the site. The average item is priced at $7. Swap takes 30% of the purchase price plus $1.50 per transaction. Sellers receive their cut via PayPal once the item is purchased, which typically is two weeks after Swap posts it, Kopenen says. Repeat buyers account for more than half of Swap’s revenue, he says.
Swap launched in 2013 selling children’s clothing and has since expanded to men’s and women’s clothing.