Early on, 2022 was named the “year of resale” as more and more brands turned to the Resale-as-a-Service model to boost their sustainability efforts and their bottom line. Nearing the mid-year point, we want to share our thoughts on whether resale is still the biggest e-comm trend this year. Hint: Yes, it is.
Here are the facts.
1. RaaS has experienced a 280% YOY growth
According to The Recommerce 100 report, ThredUp’s monthly comprehensive review of branded recommerce, there are currently 85 brands with resale shops with 93K total listings and an estimated total revenue of $5.7M. With Treet powering more than a third of the listed resale experiences (35 and counting), we can confirm that the resale future is bright. Since the last report update in May, we’ve already signed on 10 more brands to go live this month. Our Treet Shop is the best place to find all of our resale shops in one place - and we highly recommend signing up to be notified each time a new brand goes live!
2. Resale does not cannibalize sales, it actually increases brand loyalty
One of the biggest questions we received early on was whether resale cannibalizes regular sales, and our answer is a resounding no. In fact, it’s quite the opposite. We’ve found that secondhand shoppers are different from those who only shop firsthand, so many of them weren’t shopping your brand directly in the first place. In fact, 42% of shoppers on Treet-powered sites have never purchased from our brands before. By opening up your own secondhand shop, you instantly attract sustainably-minded, thrifting individuals and converting them into brand ambassadors.
What’s even more interesting is that you have an opportunity to engage your current customers in a whole new way. By providing them with an opportunity to exchange their old items via resale and then buy something new with credit, you are keeping them in your circular ecosystem.
3. Resale is a profitable business model for fashion brands (if done right)
While still in its infancy, branded resale is already proving to be a big win for brands looking to add a new revenue stream. While RaaS can look different from business to business, the profits greatly diminish when the brands calculate the rising inputs, labor costs and logistics surcharges of handling RaaS on their own. It’s easier and much more cost-effective to partner with a resale platform like Treet that takes on all the logistics and customer service aspects of resale, while sharing the revenue. With a customizable approach to resale, whether it’s brand-direct, peer-to-peer or hybrid, Treet works with brands of all sizes. Coliclico is a great example of resale done right – you can read about it in our case study here. Also, check out our infographic with stats from a real client below:
Halfway through 2022, we are more excited than ever about resale and what it means for the future of e-comm brands! If you are a brand looking to explore resale, reach out to us for a free consultation by contacting firstname.lastname@example.org.
Not ready to speak to someone, but want to learn more? Our Resale Revenue Calculator is a great place to start. Download it here.