Fashion Resale is Continuing to Grow
The reselling of fashion items, including handbags, jewelry, watches, and accessories such as belts and scarves has been growing in recent years. Driven by factors such as sustainability concerns and changing consumer attitudes towards pre-owned goods, this trend is expected to continue.
The rise of online resale platforms, (websites and / or their apps) growing awareness of the circular economy, sellers wanting to declutter and buyers searching for unique items and affordability are likely to further fuel the growth of this market.
As many resellers offer consignment services or are only consignment shops, the points presented here are also relevant to consigned goods. It's worth noting that there are various terms used to describe these used items, such as "pre-loved" "pre-owned" "secondhand"and "resale." eBay refers to this market as "recommerce" and this term has become widely used. For this post these terms are used interchangeably.
While this post mentions resale platforms like Vestiaire Collective and The RealReal where vintage fashion can be found, it doesn't delve into the unique aspects of the vintage classification.
The resale market has experienced significant growth in recent years, with platforms catering to a wide range of consumers and price points. For example, Fashionphile specializes in luxury handbags, jewelry and accessories, while Vinted focuses on more affordable clothing and everyday items.
A number of resellers have published reports analyzing reselling trends, including The RealReal, ThredUp, and eBay. These reports provide valuable insights into the pre-loved market, with data on popular brands and styles, consumer behavior and growth forecasts. Their specific statistics aren't included here and this post acknowledges the overall trend of continued growth in the resale market.
A leading aspect of resale platforms in 2024 has been that some of them have been changing fee structures and in some cases, were met with backlash from both buyers and sellers. As a result, the platforms such as Mercari and Poshmark opted to redo the changes they sought to update. As the numbers and types of resale options and offerings grow in 2025, I believe changes in fees structures will continue to be a dominant theme.
Growth will continue. However it is important noting it's also a highly competitive landscape that will only intensify. New entrants will continue emerging. A pre-loved luxury Louis Vuitton handbag could be purchased at a one unit local consignment shop as well as buying the same Louis Vuitton style from a luxury reseller located on the other side of the world. Existing firms are moving into new product lines and expanding into new geographies which will give buyers and sellers a growing list of options of where to buy and to sell.
Companies are adopting innovative operational strategies, including enhancing their own authentication processes and operational efficiencies which are aimed to be scalable. For example, The RealReal emphasizes its constantly refined authentication methods, highlighting their "superior accuracy", which includes using AI. (Authentication is a leading issue when selling and buying luxury products. Another upcoming post will review this topic.) The intense competition, combined with investments in the business and staying on top of customers' demands are contributing to the many challenges of achieving profitability in this market. Note that public information about the profitability of resale is difficult to pin down.
Selling and Buying of Pre-Loved Fashion
There are different approaches regarding how sellers and buyers participate in reselling. The two most common models are:
Peer-to-peer - This type of resale platform does not take possession of the inventory. The seller is responsible for taking photos, posting the listing and shipping to the buyer. Note though there is an exception regarding the seller not sending the item directly to the buyer, but must send the item to an authentication center.
When a platform, such as eBay, authenticates an item, (certain rules need to be met that lead to the item being authenticated) the seller sends it to an authentication center and the item goes through inspection by the platform. Poshmark, Vinted and Vestiaire Collective which also do not hold inventory, will authenticate merchandise. Each platform has guidelines and procedures for authentication requirements and processes.
Resale platforms that hold the inventory - ThredUp, for example, which fpr the most part operates a consigment model receives the inventory and is responsible for the photography, listing, shipping to the buyer and finally paying the consignor. In the second half of 2024 ThredUp announced it was operating a Direct Listing program in a limited beta, whereby ThredUp would not hold inventory. With this set-up, it operates like a peer-to-peer model. By slowly adding the Direct Listing option, it shows ThredUp is an example of how market players are trying to grow and in a scaleable way.
I added my name to the waiting list for the Direct Listing in August (I had previously consigned items with them) and sent a few follow-ups asking when I could participate in ThredUp’s Direct Listing option. I’m still waiting to be accepted.
Per the website: "ThredUp also operates another model, Resale as a Service, (RaaS) This is a program that allows brands to offer their own resale experiences to their customers, powered by ThredUp's technology and infrastructure."
Fashion Brands Moving into Resale
A newer development is that brands are becoming involved with buying and selling of their own items they have sold, or were purchased from another retailer. The brand sells the pre-loved items via: (1) peer-to-peer (2) the brand holding the inventory, and making it available to others, either online and sometimes in the brand's store.
Fashion Brands Offer Different Resale Options
With brands getting directly involved in the resale market, it is believed customers will increase customer loyalty to the brand. Keep in mind the overarching theme that there is not a unified approach regarding how the brand resells the item and how the seller is paid.
Some brands offer a store credit such as in the form of a voucher or gift card. A nice feature about this credit is that with some brands, this amount might be higher that if the seller requests cash. Yet, a potential downside is that when the brand provides the credit, at times there are rules how and where the credit can be used. For instance, some brands do not allow the credit to be used for other items on their resale platform, meaning it is only allowed for buying new items, in the store or online. The sheer number of options makes for a delightful dilemma!
Fashion Brands Partnering with Third-Party Companies and a Note of Caution
Brands have been increasingly partnering with outside technology parties to run their resale operations. Third-party technology companies like Archive, Trove, and Reflaunt are involved in branded resale, offering specialized platforms and expertise.
While this collaboration can be beneficial, it's important to remember each brand's resale program is unique, with its own terms and conditions. Therefore, it's crucial for both sellers and buyers of pre-loved items to carefully read the fine print before engaging in any transactions.
Examples of Fashion Brands Working with Technology Companies
Trove has been tapped by a number of companies such as Eileen Fisher, Patagonia, Allbirds and Canada Goose, A few of Reflaunt's resale clients include: Balenciaga, Net-a-Porter and COS. In December 2024 Archive reported it works with 55 brands including The North Face, Oscar de la Renta and the children's wear company Hanna Andersson.
Maje Resale
The fashion brand Maje has a resale program called Maje Secondhand. It is powered by Archive. When a seller wants to sell pre-loved clothes through the Maje Secondhand platform, they also have a choice of payout. According to the Maje Secondhand website:"You can receive 70% of the resale price if you choose cash, or you can receive 100% in credit towards your next online Maje purchase."
The platform is clear it is not responsible for authenticating the merchandise. It states: Maje does not guarantee: (1)”The existence, quality or authenticity of the items advertised. (2) The truth or accuracy of sellers’ content or listings on the service. However, your purchases
are protected when you shop with Maje Secondhand we will refund you if your item never ships or has been misrepresented by the seller.” Link: https://secondhand.us.maje.com/
I've reviewed a number of other brands’ secondhand platforms and a similar approach has been taken. I believe though it is more difficult for a seller to post fake items on brands’ secondhand sites because in some of the secondhand sites, the starting point to list an item is to include the style id. If that is not available then the seller needs to provide additional information to have the item listed. This contrasts with other platforms such as Mercari, where the style id is not required.
Diane von Furstenberg Resale
The "Queen" of the wrap dress, Diane von Furstenberg (DVF) is involved in resale. DVF’s resale program has the catchy name DVF ReWrap. The technology partner is Archive.
For selling on this peer-to-peer platform a few points are noteworthy including: To begin the selling process the seller provides the Style id. If the seller cannot find the style id the seller completes a form listing information such as item name, description, and the style id. Interestingly, the form has a specific question if it is Vintage item, and notes that would be for an item originally purchased is before 2000.
Regarding pricing of the pre-loved items, DVF ReWrap will recommend a listing price based on the item’s condition and the original value, though the platform states:"But you can set your own price within a range. On average, items sell for about half the original price." The images of the item are a combination of the brand's stock photos, if available and the seller's required supplied photos.
DVF ReWrap gives the seller a choice of how to be paid: (1) If a DVF gift card is selected, the seller will receive 100% of the selling price. (2) If cash is selected, the seller receives 70% of the sale price of the item.
A few points to note that if cash is selected, payment is made through Stripe that issues an ACH payment directly to the seller's bank account. The seller must have or create a Stripe account and of course follow Stripe’s account opening account requirements that include providing your date of birth and social security number. So, another note of caution: If you do not like giving personal details to another party, requesting a cash payment for reselling on DVF ReWrap is not for you. Link: https://rewrap.dvf.com/
Béis Resale
In October 2024 the luggage brand
Béis and the software company Trove launched a resale platform. The playful name for the platform is Second Béis. My review of the platform showed backpacks, duffles, rollers and weekenders. Luggage is not a part of the fashion industry but included this category as it is something you wear with your outfit. Agree?
The Second Béis program is described as follows: "... offering gently used items at a more affordable price. ...allows us to sell items that have been returned with minor defects or missing packaging. These items are still in great condition but don’t meet our standards for full-price sales. ...To clarify: We are not selling items that have been noticeably used or violate our return policy. Each item in the Second Béis program is carefully inspected to ensure it meets our quality standards, giving you the chance to purchase Béis products at a lower cost.
Second Béis does not have an option for those who own a Béis product to sell to others through the Company. Link: https://beistravel.com/collections/second-beis
New Balance Resale
New Balance has a trade-in program called New Balance reconsidered. It is powered by Archive. The rules surrounding this resale program proves that one must read the fine print of each program.
For example, the notes about New Balance’s trade-in, per the website include: “We are only accepting men’s and women’s footwear at this time… If your item is accepted for trade in, you will earn a voucher based on the original MSRP of the item. The amount could be up to 25% of the original MSRP.” Furthermore, “If your item is accepted but the original MSRP cannot be determined, you will earn a trade-in voucher in the amount of $5. For trade-ins by
mail, $7.50 will be deducted from your trade-in voucher to cover the cost of shipping."
This New Balance example also shows that sellers could face a conundrum deciding where to sell their New Balance sneakers. They could sell them through New Balance reconsidered, where they give-up their sneakers without knowing if New Balance will accept them. Additionally, if the sneakers are accepted, the seller will learn only later the amount of the voucher from New Balance reconsidered. Furthermore, they need to be sure they want to purchase another pair of New Balance product as the voucher is only good for that brand.
Regarding how the seller can use the New Balance reconsidered voucher: “The voucher can only be used online at newbalance.com and participating New Balance retail stores at this time. It cannot be used on newbalancereconsidered.com.” Note that if the shoes are not accepted, they will not be returned to the seller as they will be donated to a non-profit group. The seller does not receive anything. As a result, a seller of used New Balance sneakers might want to look elsewhere to "cash in" Link: newbalancereconsidered.com.
More Options for Selling Sneakers
In addition to the trade-in noted above, sneakers could be sold on on a peer-to-peer platform such as Poshmark. This option allows the seller to control the selling price of the sneakers. However, the seller is responsible for keeping the sneakers on hand, taking and uploading photos, packaging and shipping. With the New Balance reconsidered option the seller is able to declutter and not be bothered with the tasks associated with a peer-to-peer platform.
There are even more options for preloved sneakers. (and other goods). These platforms are focused on recycling and just two are mentioned here. One is a sneaker specific company called Got Sneakers? The other is a a company called Trashie that accepts a range of product lines and subsequently added electronics.
Got Sneakers?
My experience with recycling several pairs of New Balance sneakers using Got Sneakers? was easy and followed the time lines noted on the company's website. The website is easy to follow, the information is clearly presented and my questions were quickly answered.
Got Sneakers has a few programs and I used the Individual Seller program. According to the website: "The intent is to recirculate pre-owned sneakers and the dollar amount the seller receives depends on the condition. ... All heavily used and damaged footwear is recycled to reuse materials or to convert waste into new energy." There are guidelines to follow in order to have sneakers accepted for reuse and there are set dollar amounts, based on a description of the used sneakers indicating how much the person will receive.. .Link: https://gotsneakers.com/
Trashie is becoming known for their bright
colored The Take Back Bag. The bag is purchased and then filled with clothes, shoes and accessories in almost any condition and sent back via mail in exchange for TrashieCash.
Per the website, Trashie accepts "clothing, shoes, bags, accessories and linens in any condition. This includes swimwear, underwear, socks, and more! Please keep in mind scraps can not go in this bag, but we can take 98% cotton in our Cotton Fabric Scrap Bag."
The Company describes itself: "Trashie is the world’s first sustainable rewards platform - where you get rewarded for keeping your stuff out of the landfill and get to spend those rewards on amazing retailers across the internet!"
Each bag costs $20. In late December 2024 I noticed a discount to $15 for one bag and the three pack of Trashie bags that are usually $60 was listed for $36. Once the bag is filled with the items, the QR code on it can be scanned for shipping instructions or a printed label could be used.
When the Take Back Bag is sent back to Trashie, the sender receives TrashieCash. The TrashieCash can be redeemed for rewards to use at a wide range of retailers across clothing, home goods, dining, experiences, beauty and wellness. Some of the companies accepting these TrashieCash rewards include Allbirds, Malin & Goetz, Third Love, and Uber Eats.
Link: https://www.trashie.io/
Profitable or Not?
I've been unable to track down financial figures to determine if these resale programs associated with brands are profitable. However, it should be noted, more companies are joining reselling their own pieces and those that have been involved with this are expanding options and continue evaluating updates. Maybe they are testing different paths for profitability For example, on Trove's website, it reports:"Carhartt kicked off its program with a resale site and a trade-in pilot that included six stores. Four months later they expanded to include trade-in both online and at every store nationwide." Carharrt's resale program is called Carhartt Reworked. As of December 26, 2024, the Carhartt Reworked website stated: "6,829 Trade-ins received via 39 Carhartt Company Stores.
The content above presented a few highlights about resale. If that wasn't enough to consider, wait there is another platform that is worth considering!
Croissant - Guaranteed Resale Price
Launched in July 2023, with $24 million in funding, Croissant calls itself a "shop now, sell later" model that provides users with a guaranteed resale price at the point of purchase. It covers ready-to-wear, accessories, footwear and vintage. The guaranteed price is determined by factors including AI and is valid for five years. Interestingly the guarantee had been for only one year and in November 2024 the guaranteed time frame expanded to five years.
My time on this platform, checking out a range of fashions and retailers, but not buying any items looked to me that the guaranteed prices listed were on the generous side. But of course that is just my opinion based on experience reviewing other resale platforms.
Croissant's Partners
Croissant partners with with over 100 retailers to guarantee resale prices. Partners include Neiman Marcus, Revolve, The RealReal Nike and Birkenstock. Below are screenshots of a few more partners:
The shopper needs to use a browser extension. At checkout, Croissant provides a Guaranteed Buyback™ price for five years. The platform states the guarantees range from around 20-75% but typically ranges around 35-40% of the original retail price.
Croissant has used promotions to attract shoppers. For example, as shown below for a limited time, it increased the buyback value for certain brands, including New York based Khaite (ready to-wear, shoes and handbags bags) and Australia base Posse. Posse, on its website states: "... we honour the principles of slow fashion. We strive to deliver conscious collections, with only a limited number of units being ordered per style." Below is a screenshot from Croissant with my highlights in blue. It will be interesting to see how Croissant uses this and other types of promotions.
Using the Guaranteed Buyback
Items purchased with Croissant, per a July 2024 press release, notes buyers can "sell items (to Croissant) in a matter of taps, with no photos or resale listings required." Furthermore, "After Croissant receives the items, it leverages its listing technology to find new buyers within the existing secondhand ecosystem."
In November 2024 I reached out to Croissant asking where the merchandise Croissant buys back lands. Their email stated : "At this time Croissant items are resold across various resale marketplaces, such as Poshmark, eBay, Depop, Mercari." I'm puzzled about this response as I've not yet been able to find Croissant as a seller on these platforms. It is possible I'm unlucky, with my searches, or perhaps Croissant uses another name when selling the merchandise. I did not ask Croissant to provide more information. This model is intriguing and I'm focused on following it in 2025.
This post just scratched the surface of resale! In 2025, I'll dive deep into topics such as authentication and fees, and more. Stay tuned!
Full disclosure: I have no affiliation with any brands / companies /entities mentioned in this post. All opinions are my own, and I have not received any compensation for writing this.