8 Reasons for Brands to Embrace Resale


In the past, participating in resale wasn't widely feasible for brands looking to adopt more circular models. With concerns over cannibalization and fraudulent items, it was also a daunting initiative to tackle. However, with resale growing at a rapid pace, the heightened sustainability expectations from consumers, and new technology to make it possible, brands are finally able to expand into this realm of their customer journey. A growing number of innovative e-commerce brands are taking ownership of their resale market and embracing recommerce as a revenue generating and environmentally-minded solution to drive greater customer loyalty and reach new customers.


Here are 8 reasons to embrace resale and ensure your brand doesn’t get left behind:


1. Be More Sustainable

Resale keeps your items out of the landfill and maximizes their lifetime usage. McKinsey’s Fashion on Climate Report states that circular business models, including recommerce, could enable the industry to cut around 315B lbs of Greenhouse gas emissions in 2030. On top of this, ThredUp's 2021 Resale Report notes that buying an item used vs. new reduces its carbon footprint by a whopping 82%. This makes resale one of the most effective ways to reduce your carbon emissions and increase the sustainability of your online presence.


2. Reach New Customers

Environmental sustainability has also become a significant priority influencing the shopping choices of young consumers. According to a 2021 GlobalData Consumer Survey, 45% of Millennials and Gen Z say they refuse to buy from non-sustainable brands and retailers. In addition to being environmentally-minded, they’re also price conscious, and the reduced prices associated with resale allow them to refresh their closets in a sustainable and affordable way. 53% of Millennials and Gen Z say they’ll spend more on secondhand in the next 5 years, making it an effective way to introduce your brand to one of the largest segments of shoppers.


3. The Industry is Booming

The resale industry is set to grow at 5.4X over next 5 years—11X faster than retail, according to GlobalData. 76% of people who have never resold clothing are open to trying it, and 33M consumers bought secondhand apparel for the first time in 2020. Brands that take the reins to embrace resale, will be well situated to meet their customers’ changing buying habits.


4. Generate Revenue on Every Secondhand Sale

Gone are the days of your items appearing on Goodwill racks or online platforms like Poshmark without a way to get a cut of the profits. There are now viable options to ensure you’re maintaining control of branding and quality assurance, while also generating revenue on every item resold. Brands may want to partner with a resale solution like Treet to build their own fully-branded recommerce site, enabling customers to buy & sell items from each for cash or credit back to your brand, while also enjoying a percentage of the sale.


5. Increase Customer LTV

Most recommerce models, Treet included, offer a way for customers to redeem their funds from selling a used item as credit back to the brand. We're seeing customers spending 60-150% more than their allotted credit to purchase new items from our brands. This can drastically increase customer LTV by ensuring customers are coming back to shop with you again.


6. Strengthen Customer Loyalty

GlobalData reports that 34% of consumers are more likely to shop with a brand that offers secondhand clothing alongside new, and 32% of consumers are more likely to view a brand as high quality if the brand sells both secondhand and new clothes. Having a path for your customers to purchase from each other in an easy, safe, and fun experience that will enhance brand loyalty and encourage them to purchase new items from you, as well. Instead of intimidating return restrictions that may deter purchases, they’ll have peace of mind knowing there is a designated path for them to re-list Final Sale or other items should they not fit, in addition to any gently used items they can pass along to a new owner.


7. Access Untapped Data

You can unlock access to valuable data, such as the demographics of your resale shoppers, where they’re coming from, what they’re buying, % net new shoppers, and how their habits differ from your core market—all priceless data points to inform product development and marketing strategies.


8. Low Lift to Get Started

With recommerce platforms taking the guesswork and heavy lifting out of resale, it’s easier than ever to get started. You can quickly get your own fully-branded recommerce site up and running, enabling your customers to buy & sell items from each other securely without you having to do any of the build or handle ongoing logistics or support.


The resale market is exploding, presenting a prime opportunity for your brand to become a leader in the space. Your customers are going to be buying and selling your goods secondhand—the question is, do you want to be a part of it?