Where Layaway Meets the Circular Economy: The Klarna–Poshmark Partnership

17 Tuesday Mar 2026

Posted by in Chapter 03: Social and Mobile Marketing, Chapter 06: Consumer Behavior, Chapter 17: Retailing and Multichannel Marketing

≈ Leave a comment

Tags

, , , ,

istockphoto / Wirestock

The concepts of layaway payments and resale markets might seem contradictory, but in today’s marketing landscape, they are joined in reality. When the buy now, pay later service provider Klarna debuted its strategic partnership with Poshmark, one of the biggest digital consignment retailers in the world, the two companies asserted that their collaboration actually represented a natural complement. In particular, both firms tend to attract similar segments of budget-conscious customers. Furthermore, both of them represent first-movers and innovators, which have largely reinvented what were once brick-and-mortar applications for the digital age.

According to Klarna, its goal is to help streamline the circular economy, by facilitating the behaviors that many Poshmark sellers already exhibit. That is, experienced resellers often scour the site, in search of products that are listed at low prices by inexperienced original sellers who do not recognize the value of the items they are listing. The experienced seller then goes on to relist the product at a higher price, sometimes mere moments after purchase. The difference, for savvy resellers, can be a tidy profit.

Such practices are notably unlike traditional consignment markets, such as thrift stores. Digital platforms and quick shipping capabilities enable items to switch ownership multiple times in a short span of time. Efficiency is thus a priority, but for the experienced resellers, the business model can demand a lot of time and effort, much of it quite repetitive. They need to monitor the site constantly to snap up good deals, and then they need to write brand new listings for each product, take new photographs of the items, and measure each part for fit.

It’s at this point in the circular economy that Klarna can introduce a novel opportunity. It grants its existing customers access to Poshmark purchase histories, including the images and listing information used by previous sellers. Therefore, rather than crafting new and appealing descriptions and shooting new glamour shots, they can repost existing content. Furthermore, eligible entries can be leveraged to create templates that then offer suggested wording for subsequent listings of similar items.

To attract first-time sellers to embrace both firms, registrants automatically receive $10 in Poshmark store credit if they also are using Klarna. At the same time, Klarna shoppers are being newly exposed to Poshmark and its offerings.

The novel partnership offers further evidence of Klarna’s and Poshmark’s ongoing determination to achieve first-mover advantages. The resurgent popularity of thrifting first became evident more than a decade ago, but market forecasters predict that the worldwide resale market will continue to grow steadily, and furthermore, e-commerce platforms are predicted to account for the majority of such transactions. By the 2030s, the global consignment market is expected to be more than twice its current size. Especially as global economic anxieties persist, resale markets promise consumers a viable solution to access a wide selection of items, without having to rely on conventional supply chains. Even if they want to purchase the most expensive luxury products that appear on Poshmark, they can do so now, by spreading out the payments over time through Klarna.

Notably, seemingly in an attempt to capitalize on Poshmark’s and Klarna’s shared appeal to consumers of digital-first generations, they announced their partnership right before a back-to-school season, when young parents and college students were likely to be looking for a lot of clothing items but had little cash to spare.

Discussion Questions

  1. Have you ever used a buy now, pay later service? What factors motivated your decision to do so at the time, and how do you feel about that experience in retrospect?
  2. In addition to alleviating economic pressure, what are some of the benefits of consignment markets? Are there any costs?

Sources: Xanayra Marin-Lopez, “Klarna Users Can Now List Past Purchases on Poshmark,” Retail Dive, July 24, 2025; Liz Morton, “Poshmark Partners with Klarna to Streamline In-App Resale,” Value Added Resource, July 22, 2025, https://www.valueaddedresource.net/poshmark-klarna-resale/.

Back Down to Earth: McDonald’s Closes CosMc’s

10 Tuesday Mar 2026

Posted by in Chapter 05: Analyzing the Marketing Environment, Chapter 12: Developing New Products

≈ Leave a comment

Tags

, ,

We previously presented a new product line introduction by McDonald’s (see “Breaking New Ground: McDonald’s Introduces a New Product Line”), called CosMc’s, a chain of space-themed restaurants with smaller menus than conventional outposts of the fast-food chain. It sought to fill a gap in the market, positioned in between coffee shops and traditional fast-casual restaurants, that would meet younger consumers’ desire for personalized options. But the experiment never took off, and within just a couple of years of opening its five pilot locations, CosMc’s has come to an end. It’s not all bad news though, for the company or consumers. McDonald’s is using the information it gathered to introduce some of the more successful CosMc’s menu items and preparation techniques into its regular stores. By leveraging this intense proving ground, McDonald’s thus gained an opportunity to experiment with different store concepts, without threatening or undermining its core business.

Sources: Jordan Valinsky, “McDonald’s Is Closing Down CosMc’s, Its Beverage-Focused Spinoff,” CNN, May 24, 2025; Amanda Mactas, “McDonald’s Is Closing All CosMc’s Locations—Here’s What You Need to Know,” Delish, May 27, 2025; Ashok Selvam, “CosMc’s Falls From Orbit as McDonald’s Will Close ‘Beverage-Focused’ Spin-Off,” Eater, May 27, 2025.

Got Your Back: JanSport Wins with Corny Campaign

03 Tuesday Mar 2026

Posted by in Chapter 09: Segmentation, Targeting and Positioning

≈ Leave a comment

Tags

, , , , , ,

istockphoto / Jacob Wackerhausen

For students on the move, their backpacks become constant, indispensable companions, never far from reach. They function almost like a good friend, ready and able to offer up snacks, a spare pen to jot down ideas, the notes from last week’s class, gloves on cold days, and some tissues during cold season. Recognizing that a good backpack supplies all the critical tools, devices, food, and educational material a busy student might need over the course of a day, JanSport took the parallel a step further, advertising its backpacks as anthropomorphized companions who are well-suited for preparing kids for the challenges of heading back to school each year.

One popular advertising spot featured animated backpacks that offered deadpan delivery, designed to keep students company during their toughest moments. One awkwardly delivered a cute song in a bathroom stall. Another offered sympathy during a breakup. The odd but emotionally resonant campaign resounded with students, such that consumer interest in JanSport skyrocketed. Measured by online traffic, it rose 65 percent; indicators of consumer engagement jumped 24 percent. And perhaps most important, brand sales increased more than 70 percent.

Thus, when the next year rolled around, JanSport doubled down on its advertising strategy. A television spot highlights two young adults entering an elevator, then riding to their respective floors in polite, awkward silence. Unbeknownst to the humans, their JanSport backpacks have come alive and joined in a corny, off-key duet. In conjunction with the cute campaign, JanSport expanded the available designs for its product offerings, introducing more fun and charming patterns, like leopard and other animal prints and tropical-seeming coconuts.

Although primarily designed for television campaigns, the ads can readily get uploaded as short-form videos for social media platforms like Instagram Reels. Such reactions were notably common among school-aged students, for whom the absurd, surreal quality of the comedic spots aptly matches their own sense of humor. Accordingly, following the elevator campaign, JanSport reported a nearly 400 percent annual increase in overall engagement with its brand.

It is not as if such appeal were obvious, honestly. For decades, JanSport has sought to establish its strong reputation on the basis of its good quality and value. Functional, often limited to solid, drab colors, previous generations of backpacks got the job done, without a lot of humor being evoked. Such a history makes the latest advertising campaigns even more remarkable, indicative of an innovative, dynamic effort to appeal to new generations of students. In adjusting to the needs, humor, and style preferences of young consumers, JanSport sends them a strong signal that it respects and aims to accommodate their preferences.

In this sense, its recent adaptations and marketing campaigns seem to be hitting all the right notes—even if the singing backpacks in its ads can’t.

Discussion Questions

  1. Do JanSport’s latest campaigns authentically and effectively capture Gen Z’s humor?
  2. Suggest next year’s back-to-school advertising concept for JanSport backpacks.

Sources: Jessica Hammers, “Why JanSport Revived Its Cringeworthy Back-to-School Ads to Reach Gen Z,” Retail Dive, July 16, 2025; David Gianatasio, “On Brand, Off-Key: JanSport Backpacks Sing Their Own Praises,” Muse by Clios, June 25, 2025; Diane Bradley, “Which Brand’s Back-to-School 2025 Campaign Is Your Favorite?,” PR Week, August 20, 2025.

Return to Sender: E-Commerce Deliveries Are Failing Customer Expectations

24 Tuesday Feb 2026

Posted by in Chapter 16: Supply Chain Management

≈ Leave a comment

Tags

, , ,

istockphoto / Viktoriia Oleinichenko

Frustration with delivery mistakes, be it damaged goods, delayed service, or costly shipping rates, is a nearly universal experience. Yet consumer dissatisfaction with such outcomes seems to be on the rise, a trend that seemingly reflects consumers’ changing expectations more than it does service providers’ actions.

The very idea of free and same-day deliveries and the guarantee of no-hassle returns might be the norm today, but these remarkable service levels have become possible only recently. Older consumers know what it was like to wait weeks for delivery, expect add-on shipping charges, or get stuck with a less-than-perfect option because the return window had closed. But for Gen Z and younger cohorts, immediate, unquestioned, inexpensive service levels are all they know, and they’re simply not happy with any departure from those new norms.

Surveys indicate that approximately one-third of consumers, across generations, prioritize on-time arrivals over other features. That number jumps dramatically among Gen Z specifically, such that many of them demand quick access, citing it as an even greater priority than affordability. In turn, they express frustration with standard shipping options. For example, when retailers impose shipping costs, introduced only at the end of shopper’s purchasing process, it frequently induces frustration and cart abandonment. Furthermore, buyers complain about a lack of oversight by retailers that lack last-mile logistics capabilities, such that they cannot offer realistic guarantees of a seamless delivery process.

As a result of these increasingly intense and common expectations, many merchants have undertaken revisions to their logistics planning, in a way that can be deeply expensive and detrimental to their overall operations. These threats are especially notable for independent sellers operating in smaller, niche markets, like children’s toys or premium goods.

Yet they also recognize the threat of doing nothing and incurring consumers’ ire. Surveys indicate that, when subject to a delivery mishap, consumers tend to blame the retail merchant rather than logistics or shipping partners. For many shoppers, the logistics simply represent an extension of the seller’s customer service, because the seller is the one that chooses which delivery service to hire. According to this logic, it is ultimately up to the retailer to take responsibility for any delivery issues.

Objectively, and from the retailer’s perspective, such attributions and expectations might seem unreasonable. For consumers though, surprise shipping costs or delivery delays represent failures. These types of failures might prompt consumers to question their own purchase choices, which in turn can lead them into an emotionally precarious state. Their expectations are not met. Their purchase is not complete. They begin to distrust the entire interaction. When the resulting dissatisfaction grows substantial enough, the emotional aftereffects can be so intense that they undermine any sense of brand loyalty and the possibility of future purchases.

The implications for retailers are distressingly clear: They have to find a way to meet even the most unrealistic expectations that consumers develop and promise nearly perfect delivery, or else risk getting left behind.

Discussion Questions

  1. What are some measures that retailers can take to minimize customer dissatisfaction and delivery mishaps, regardless of company size or oversight over the logistics process?
  2. Why might consumers have transferred more blame for delivery mishaps to merchants?

Sources: Michael Brady, “Consumer Ire Over Delivery Mishaps Shifts from Shippers to Merchants,” Retail Dive, July 22, 2025; “E-Commerce Customer Satisfaction–Statistics & Facts,” Statista, December 17, 2025; Marina Mayer, “America’s Largest Online Retailers Experience Gap Between Consumer Expectations vs. Actual Delivery Service Results,” Supply & Demand Chain Executive, September 3, 2025.