What is resale in fashion?
The sale of pre-owned products, either through third-party platforms or through a brand's own take-back and resale programme.
In short
Resale is the sale of pre-owned products, either through third-party platforms or through a brand's own take-back and resale programme. Brand-run resale lets companies capture value from second-hand trade, strengthen customer relationships and take a practical step towards circularity.
How does it work in practice?
In a typical brand-run programme, a customer returns a worn item in store or by post and receives credit or a voucher. The brand, or a service partner, then checks, cleans, repairs if needed, photographs and lists the item for sale, often in a dedicated section of its online shop or in selected stores. Items that cannot be resold may be recycled.
Alternatively, brands partner with third-party resale platforms, or simply let customers trade independently while providing product information to support authentication and pricing.
Why does it matter?
Resale offers benefits beyond sustainability:
- It brings in new and younger customers at a lower price point
- Trade-in credit encourages repeat purchases
- It gives brands control over how their products appear in second-hand markets
- It extends product life, supporting circularity goals
Retailers may also offer resale, which can create questions about how pre-owned and new stock of the same brand are presented together.
How is AI changing it?
Resale involves many unique items, so manual processing is costly. AI can identify the product from photos, match it to original product data, assess condition, suggest prices and generate listings. Digital Product Passports and RFID tags may further simplify authentication and data capture.
Common pitfalls
- Underestimating the cost of handling, cleaning and listing single items
- Resale prices that compete with full price stock
- Weak authentication, allowing counterfeits into the programme
- Treating resale as a campaign rather than a long term channel
Frequently asked questions
Why are fashion brands launching their own resale programmes?
Brand-run resale lets them earn revenue from second-hand trade, reach new customers, keep control over brand presentation and support circularity commitments.
What is the difference between resale and recommerce?
The terms are often used interchangeably. Recommerce usually refers more broadly to selling pre-owned goods online, while resale can cover both online and in-store channels.
