Luxury Resellers Are Giving Fashion a Second Life

The burgeoning market for 'pre-loved' goods

Jaclyn Shanfeld became a fashion entrepreneur by accident. After snapping off a heel while rushing to a bar mitzvah in Beverly Hills, she hobbled into the local Fred Segal boutique and panic-bought a pair of Yves Saint Laurents—that turned out to be too small. After a few hours of podiatric torture, Shanfeld slumped in a chair to ponder her fate: She’d just dropped $900 for designer shoes that didn’t fit. Return them? Sorry, Segal didn’t take shoe returns. What about dropping them in a consignment shop? “They’d sell them for $398 and take a 50 percent commission,” Shanfeld scoffs, “which would have left me enough money to buy lunch. It was a fiasco.”