10 Reasons for Brands to Get Into Resale

With consumers looking to stretch their dollar further or wanting to make more sustainable shopping choices, the demand for secondhand fashion shows no signs of slowing. And now fashion brands and retailers reselling their own secondhand apparel (referred to as branded resale or recommerce) is on the rise. While online resale has been historically driven by marketplaces like thredUP, The RealReal, and Poshmark, brands and retailers are now set to lead the next wave of secondhand. According to the Recommerce 100, there are 90 brands with online resale shops, 54 of which launched in 2022.

For brands looking to take ownership of their secondhand market, here are 10 reasons to add resale to your omnichannel strategy.

1. RESALE IS BOOMING: According to thredUP’s 2022 Resale Report, not only is resale projected to grow 16x faster than the broader retail clothing sector, 74% of US consumers have shopped or are open to shopping secondhand apparel. Resale is a bright spot within the larger retail industry.

2. ATTRACT NEW (GEN Z!) CUSTOMERS: With 45% of Gen Z and Millennials saying they’re more likely to shop with a brand that offers secondhand clothing alongside new, and 58% of Gen Z saying brands should play more of a role in reducing fashion’s environmental impact, offering resale is a way for brands to attract young, sustainability-minded shoppers, according to thredUP’s 2022 Resale Report.

3. ENGAGE YOUR CUSTOMERS AND GROW BRAND LOYALTY: Adding a secondhand channel creates opportunities to engage customers in new ways, from trading in preloved clothes for brand credit, to rediscovering past season favorites while browsing the Resale Shop. Customers feel good about the experience, too. 82% of consumers say they feel a positive emotion when they buy a secondhand item, and 54% of those who bought their first secondhand item in 2021 said they go out of their way to tell people they’re wearing secondhand, according to thredUP’s 2022 Resale Report findings.

4. GROW REVENUE: Adding a channel for secondhand enables brands to earn revenue not just the first time an item is sold but also on the second, third, and fourth time. According to thredUP’s 2022 Resale Report, 88% of retail executives who currently offer resale say it’s helped drive revenue.

5. DRIVE SITE TRAFFIC: Resale listings are refreshed frequently (even hourly), so savvy secondhand shoppers come back often to browse what’s new. More traffic means brands have more opportunities to engage these shoppers.

6. DEMONSTRATE COMMITMENT TO SUSTAINABILITY: As the apparel industry increasingly recognizes that sustainability extends beyond how a product is made, resale is the obvious choice for extending the lifespan—and therefore reducing the impact—of a brand’s products. A recent Bloomberg article points to a staggering 11.3 million tons of textile waste in the U.S. each year—around 2,150 clothing tossed each second.

7. OWN YOUR BRAND NARRATIVE: Branded resale programs empower brands to tell their brand’s unique story, positioning secondhand on their terms.

8. REINFORCE BRAND QUALITY AND DURABILITY: Having a resale channel signals that a brand’s products stand the test of time and multiple owners. thredUP’s 2022 Resale Report shows 46% of Gen Z and Millennials even consider the resale value of an apparel item before purchasing.

9. EXPAND YOUR PRODUCT SELECTION: Resale showcases a treasure-trove of ‘one-of-a-kind’ gems (previously sold-out items, past seasons’ hits) that customers love to shop. Resale also gives brands a space to offer lower price points for today’s consumers hunting for great deals.

10. IT’S EASIER THAN EVER TO START A RESALE CHANNEL: Until recently, launching an owned resale channel was out of reach for most brands due to the complex logistics and prohibitively high costs of the single-sku operations required to source and sell secondhand items. Now, brands can easily work with resale enablement partners (including thredUP’s Resale-as-a-Service) to flexibly test, learn and grow into their brand’s resale experience, while avoiding many of the challenges of going it alone.

The rise of branded resale is top of mind for many retail executives, with 52% saying that offering resale is becoming table stakes according to thredUP’s 2022 Resale Report. Branded resale is gaining serious momentum—and the ride is just beginning for businesses ready to embrace its enormous potential. Want to explore resale solutions for your brand? Learn more at raas.thredup.com.