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Tradesy's DiNunzio on How Resale is Impacting Fashion (Audio) · Bloomberg Intelligence

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  Speaker 1: to taking Stock with pim Box and Kathleen Hayes on
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  Speaker 1: Bloomberg Radio. When you think internet commerce startups, what do
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  Speaker 1: you think of a dorm room? Perhaps right, well, let's
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  Speaker 1: think about a closet and instead of e commerce, let's
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  Speaker 1: think about re commerce. Here to tell us what this
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  Speaker 1: all means is Tracy de Nunzio, the founder and the
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  Speaker 1: chief executive of Traits Trait c. Thank you very much
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  Speaker 1: for being with us. Thanks for having me. Anyone ever
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  Speaker 1: get those two you know trades C Tracy, I guess
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  Speaker 1: and tell people what is trade c tell us about
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  Speaker 1: your closet, and then tell us about the concept of
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  Speaker 1: re commerce with an R that means something a little different.
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  Speaker 1: It does it does? So trade z is a re
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  Speaker 1: commerce platform where a peer to peer marketplace where women
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  Speaker 1: can buy and sell anything straight from their closets, so clothing, shoes, accessories,
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  Speaker 1: et cetera. And women sell both pre owned gently used items,
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  Speaker 1: so things they've worn but no longer want to wear,
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  Speaker 1: along with things that they've purchased and maybe never worn.
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  Speaker 1: And so our sellers are able to earn up to
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  Speaker 1: of what they paid um for for the products in
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  Speaker 1: their closet, and our buyers are able to get great
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  Speaker 1: deals from our sellers. So how do you differ from eBay?
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  Speaker 1: Why should I go to trades when I've got such
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  Speaker 1: a big audience on eBay or some of these other sites, Tracy.
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  Speaker 1: So there are a few things that differentiate us from eBay,
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  Speaker 1: and it's primarily on the sellar side. We found when
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  Speaker 1: we launched in two thousand and twelve that left them
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  Speaker 1: three percent of women in our target market had ever
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  Speaker 1: sold on eBay. In this category, and it was primarily
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  Speaker 1: because the listing process is kind of confusing and arduous,
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  Speaker 1: so we simplified the listening process takes sixty seconds. You
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  Speaker 1: can do it from your mobile phone when you're in
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  Speaker 1: your closet in the morning. And then we also simple shipping,
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  Speaker 1: so when our sellers make a sell, they receive a
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  Speaker 1: shipping kit right at their door within forty eight hours,
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  Speaker 1: and they don't even need to leave the house send
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  Speaker 1: it out. On the buyer side, the difference between eBay
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  Speaker 1: and trades C is that trades the guarantees the authenticity
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  Speaker 1: of every single item sold on our platform. So if
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  Speaker 1: you get a Louis a tom bag and you suspect
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  Speaker 1: it's fake, you send it back to us, and in
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  Speaker 1: the very rare instance that um that if fake flips
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  Speaker 1: through our system will give you a full refund. You
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  Speaker 1: don't rely on the seller to do that. Tracy, you
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  Speaker 1: have some not not fake by any means, some very
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  Speaker 1: genuine uh technology technology investors helping you with this. Tell
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  Speaker 1: us who's on the board, I know, John dor of
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  Speaker 1: Kleiner Perkins Bing Gordon. Tell us about the people involved
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  Speaker 1: in the money that you've raised. Sure, so we just
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  Speaker 1: closed our financing UM, we raised thirty million dollars and
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  Speaker 1: that brings our total financing to day to about seven
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  Speaker 1: million dollars. We have board members like John Doran, Bing Gordon,
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  Speaker 1: Stephanie Tilennius who used to lead eBay's North America and
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  Speaker 1: then also Google, Calmer Um, and a few others that
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  Speaker 1: are just the exceptional investors, including Richard Branson who's not
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  Speaker 1: on our board but who's very a very supportive investor.
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  Speaker 1: And I think they're all just excited about the possibility
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  Speaker 1: for disruption in the fashion categories. So if you think
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  Speaker 1: about other other categories, everything from music and entertainment to news,
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  Speaker 1: the existence of a peer to peer network, a digital
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  Speaker 1: community has really disrupted how transactions happened in those categories,
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  Speaker 1: and the same is now happening for the closet. We're
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  Speaker 1: seeing women really taking control of their finances and their
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  Speaker 1: wardrobes in ways that we haven't seen before UM, and
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  Speaker 1: the potential for that is a multibillion dollar global market.
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  Speaker 1: So Tracy, tell us more about you. How you what
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  Speaker 1: you did before, how you got this idea and then
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  Speaker 1: got it off the ground, did you bootstrap, did you
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  Speaker 1: have savings? And again what sorts of things had you
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  Speaker 1: done that led up to you launching this what seems
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  Speaker 1: to be a pretty great idea. Thank you. So, I
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  Speaker 1: had a very unusual path to entrepreneurship. I was an artist,
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  Speaker 1: That's what I went to school for. I got a
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  Speaker 1: bachelor's on a master's degree and fine art um. And
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  Speaker 1: I did that until I was thirty, so well passed
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  Speaker 1: the age that you typically see entrepreneurs launching tech companies. UM.
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  Speaker 1: But I noticed that myself and all of the women
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  Speaker 1: I knew we had the same problem, were overflowing closets.
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  Speaker 1: We felt like we had nothing to wear, We had
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  Speaker 1: no liquidity for the things that we had previously purchased,
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  Speaker 1: and that was causing us to not have the kind
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  Speaker 1: of finances we wanted or the budget we wanted to
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  Speaker 1: go out and shop more. UM. I think that it's
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  Speaker 1: a trend we can all kind of see with our
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  Speaker 1: with our own eyes, because now that we're all more
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  Speaker 1: visible on social media, we see, especially young people want
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  Speaker 1: to just be able to update their wardrobes much more
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  Speaker 1: frequently and trade and enables that. So I had this
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  Speaker 1: idea to connect to the closets of millions of women
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  Speaker 1: I thought would feel like having millions of sisters, and
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  Speaker 1: that sounded great to me. Um and I decided to
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  Speaker 1: launch this website and bootstrapped for the first few years
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  Speaker 1: by renting out my bedroom on Airbnb and sleeping on
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  Speaker 1: my couch and doing all kinds of crazy things to
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  Speaker 1: keep the dream alive. And today we have five million
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  Speaker 1: members and a hundred and forty employees. So it's been
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  Speaker 1: working out. Hats off to you, Tracy News. So I
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  Speaker 1: keep saying I just need an idea. I think him
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  Speaker 1: part of this. You know you could get an idea.
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  Speaker 1: You've got to know it's a good one. Well, this
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  Speaker 1: is fascinating, Tracy to News, you a founder and CEO
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  Speaker 1: of trade z, joining us in Santa Monica, California, to
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  Speaker 1: talk about her online shopping destination and Destructor. Indeed, this
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