October 16, 2023

Brand Direct Resale: The highest margin liquidation channel

Brand Direct resale is a powerful way for brands to sustainably sell their off-price, stale, and returned inventory.

Branded Resale
October 16, 2023

Brand Direct resale is a powerful way for brands to sustainably sell their off-price, stale, and returned inventory. It’s also the highest margin liquidation channel available, as brands can sell their products directly to engaged discount and sustainability-minded consumers without giving up a 50-80% margin.

In addition to the sustainability and profitability benefits of Brand Direct resale, there are a number of other ways that brands like yours can benefit from this model:

  • Get discounted items off your main site: Move your discounted inventory to your resale marketplace where customers are specifically shopping for deals. This is a great way to clear out excess or dead stock and make room for new products, without having to offer deep discounts on your main site.
  • Supplement peer listings to build out a more robust marketplace: If you have a peer-to-peer resale marketplace, listing Brand Direct items can be a great way to supplement peer listings. By offering your own products, you can create a more robust marketplace with a wider selection of products for customers to choose from.
  • Re-home returns: E-commerce returns are at an all-time high, with an estimated 30% of items being returned this holiday season. Brand Direct resale is a dedicated path for selling through returned inventory in a sustainable way.

How to implement Brand Direct resale

With Treet’s new Shopify app, you can now directly list returns, minor defects, and unsold or past-season inventory on your dedicated Treet shop with just a few clicks. Your items will then be resold as Brand Direct items to consumers looking for more affordable and sustainable ways to shop. You even have the choice for orders to show up on your Shopify Dashboard and fulfill them as you normally would —with Treet reimbursing you for shipping fees—or you can keep these orders separate and use our prepaid labels.

How brands are leveraging Brand Direct resale

A number of brands are already using Treet-powered Brand Direct to sell their excess inventory and improve the customer experience. Here are a few examples:

  • James Street Co. uses its resale shop, James Street Co. Archive, as a turnkey way to sell through the last units and past season inventory. Every few months, they also run larger Flash Sales on Brand Direct items to clear space for upcoming releases.
  • Youer's e-commerce team is leveraging Brand Direct as an integral part of their circularity strategy, using Treet’s upload feature to give a second life to incoming returns and minor defects on their resale shop, Youer Rediscovered.
  • Sozy - In addition to peer-to-peer, Sozy uses Treet to sell through unsold and returned inventory in bulk, dreaming up the idea for Mystery Bags (discounted bags of multiple, slightly defective items) that fly off their digital shelves. Their customer response to this initiative was overwhelmingly positive, helping them sell through 3 years of aged inventory in just 3 months.

Brand Direct resale is a powerful tool to help brands move excess inventory and drive new sales. Brand leaders, don't let your excess inventory go to waste. Give it a second chance with our Resale App! Contact our sales team here today to learn more about how to get started.

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