The author has shared a Podcast.You will need to accept and consent to the use of cookies and similar technologies by our third-party partners (including: YouTube, Instagram or Twitter), in order to view embedded content in this article and others you may visit in future.
Subscribe to the BoF Podcast here.
Background:
Resale is no longer confined to thrift stores or niche platforms; it has grown into a roughly $50 billion industry in the US alone, by some measures. Platforms like Poshmark, The RealReal and Vestiaire Collective have transformed the experience, making it more accessible and attractive to consumers at every price point. At the same time, brands are increasingly stepping into the space, with some launching their own programs to resell returned or used merchandise, transforming what was once a reactive practice into a strategic business opportunity. And new start-ups hope to create a new secondhand market out of brands’ returned merchandise.
Retail editor Cathaleen Chen and e-commerce correspondent Malique Morris join senior correspondent Sheena Butler-Young and executive editor Brian Baskin to unpack the evolving resale landscape.
Key Insights:
- The destigmatisation of secondhand fashion is closely tied to convenience. “A large part of the equation is how easy it is to shop and sell secondhand,” explains Chen. “There are dozens of platforms that do peer-to-peer shopping options where you can buy something secondhand for, you know, at a fraction of the cost of retail where you can sell something that you’ve had for a while.… When resale is top of mind like that, I think the market adapts to that acceptance mentality.”
- But establishing a leading position in the market has proven difficult, despite rapid adoption. “The learning for operators of these platforms is that there’s very little consumer loyalty in this space,” says Chen. “When I consider selling something, I’m going to look at every single platform — whichever one gives me the quickest sale, the easiest sale, and the most money.” This dynamic has created a fiercely competitive landscape, with platforms racing to attract sellers by offering the best incentives.
- Bazar is taking a different approach to resale, stocking its marketplace with returned, goods brands would struggle to restock without refurbishment, including some fast fashion. “Bazar doesn’t go through the trouble of necessarily fixing items. It’s kind of listed as is, and customers get a ‘what you see is what you get’ experience,” says Morris. Additionally, Bazar allows fast fashion brands like Cider to offload inventory, which many traditional resale platforms avoid. “There is a level of transparency there which is supposed to be a part of the proposition of sustainability and a part of the proposition of resale as well.”
- As the industry develops, Morris envisions brands taking more ownership of resale, as platforms like Revive are already helping brands create their own resale programs to handle returned merchandise. Such efforts could turn resale into a sustainable, profitable venture, making it a key part of brand operations. “If resale can prove that it is an avenue for [brands] to achieve profitability … I can see it becoming a bigger priority brands which will make the shopping experience all the better for consumers.”
