The online rental platform is launching an Amazon Fashion store, it announced Thursday.
On its own website, Rent the Runway already offers discounted used parts at the end of its rental cycle from its hundreds of brand partners, including Jason Wu, Sandro and Madewell. Amazon’s selection includes styles from about 35 brands. Rent the Runway hopes the partnership will serve both as a form of marketing and to increase revenue.
“The collaboration with Amazon Fashion gives Rent the Runway incredible brand recognition,” Jenn Hyman, co-founder and CEO of Rent the Runway, said in a statement. “We believe that strategic relationships like this can ignite a new growth engine for our business.”
Rent the Runway jumpstarted reselling in 2021, when the company made it possible for non-renting members to purchase items in the “clearance” items on its website.
While consumers have been quick to embrace second-hand fashion, renting is a tougher sell. Rent the Runway had 134,240 active subscribers in Q3 2022. That compares with 950,000 active shoppers on The RealReal in the year ending September 30.
Rent the Runway has cut its losses in recent quarters. It expects to break even on adjusted EBTIDA, or earnings before taxes, interest, depreciation and amortization, in the “near term,” Hyman said on a recent earnings call.
Learn more:
How to make renting work
After years of trial and error, rental platforms have found new ways to improve margins and acquire customers, such as focusing on niche categories. However, profitability remains elusive.
Source: news.google.com