Poshmark, the online marketplace, soars on IPO day

Nasdaq’s new darling is Poshmark, an online site for buying and selling used goods. Its initial public offering was priced at $ 42 a share this morning, and by the end of its first day it had jumped just over 140%.

It is not a big surprise. The number of online marketplaces had increased before the pandemic, and they are even more popular now.

When things came to a standstill early last year and people found themselves out of work or home or both, many of them turned to their business for money.

Sucharita Kodali, analyst at Forrester, said some people view selling on these sites as a side business.

“It’s an extension of the concert economy,” Kodali said. “It’s a new way for you to be your own boss, and it’s a platform that a lot of micropreneurs have. ”

This is how companies such as ThredUP, Poshmark and Mercari market themselves with online and TV advertisements.

Poshmark said its users in June were double what they were in 2018.

Buyers in many online second-hand marketplaces were already growing, said Treeny Ahmed of the Yale Center for Customer Insights. Now they buy everything from salt and pepper shakers to designer shoes.

“Given the current economic conditions, buying them second-hand is almost like giving you permission to buy something new for yourself. It’s just less unnecessary, ”Ahmed said.

These sites are increasingly popular among Millennials and Gen-Zers because, said Neil Saunders, Retail Analyst at GlobalData, with all the interactions, they are more than just markets.

“They are, in a way, a hybrid between a traditional retail site and a social media site, especially a peer-to-peer platform like Poshmark that makes them more engaging,” he said. declared.

And, like other social media sites, there’s this attraction that keeps people coming back for more.