Branded resale has emerged as a powerful tool for brands to drive greater customer lifetime value (LTV), attract new audiences, and make a meaningful impact in their sustainability efforts. At Treet, we have witnessed this revolution firsthand through more than 100 successful branded resale launches in just two years. This post delves into ten key lessons we've learned from these launches, providing valuable insights for brand leaders looking to embrace the power of branded resale.
1. Diverse Resale Models for Diverse Brands: Branded resale is not a one-size-fits-all solution. While we initially started with peer-to-peer, we quickly adapted to support multiple models, including trade-in and brand direct, to cater to the unique needs of our brands and their customers.
2. Beyond "Used" Clothes: Contrary to common belief, branded resale extends far beyond "used" items. Roughly 70% of our brands use Treet to sell unsold inventory, production units, samples, and NWT (New With Tags) items that customers were unable to return.
3. LTV and Customer Acquisition as Key Priorities: Only 30% of our brands prioritize resale primarily for sustainability reasons. The majority see resale as a means to drive customer lifetime value and attract new shoppers, making it a strategic move to grow the business.
4. Resale: A Gateway to New Customers: Branded resale attracts fresh faces to fashion brands, with over 40% of customers shopping Treet-powered resale sites being new to our brands. This presents an exciting opportunity for brands to expand their reach.
5. Profitability Across Brands of All Sizes: You don't have to be a fashion giant like Patagonia to run a profitable resale program. The combined resale listings from brands like CUTS, Nooworks, and Rylee & Cru have outperformed several $500M+ brands.
6. Rediscovery Appeals to Shoppers: Shoppers are drawn to branded resale for the chance to shop past-season or archived items, providing a sense of rediscovery that brands can capitalize on.
7. Prime Placement for Resale Programs: 67% of our brands prioritize resale by linking their resale programs in their site's header, giving it prominent placement to attract attention and engagement.
8. Resale Programs Can Launch Quickly: On average, brands can launch their resale programs within 32 days from agreement signing to the first dollar earned. Several brands have even achieved this in under two weeks.
9. Branded Resale Expands Beyond Apparel: While apparel is the logical starting point, footwear, accessories, bedding, toys, and watches have also proven to be promising categories for branded resale.
10. Explosive Growth of Resale Programs: In just two years, branded resale programs have multiplied from a handful to hundreds. The future looks even brighter as we anticipate going from hundreds to thousands in the next two years.
The journey of branded resale has been marked by remarkable success, attracting new customers, fostering profitability, and championing sustainable practices. Fashion brand leaders must embrace the power of branded resale as a key strategy to drive growth and customer loyalty in the rapidly evolving market. Treet is ready to support your brand's journey to a successful branded resale launch and beyond. Ready to launch your own resale program or simply want to learn more about the process? Let’s chat!