How resale platforms can drive growth for your business
December 8, 2022
Is it time to launch your own resale platform?
Resale is the latest retail trend. We’ve all heard of Depop and eBay by now, but more and more retailers are launching their own resale platforms and capitalising on the rising demand for pre-loved.
From the cost of living crisis to environmental concerns, consumers want greener, more affordable shopping options and brands want a slice of the resale action.
What do we mean by resale platform?
Resale shopping refers to the act of purchasing pre-owned items. A resale platform refers to the places we go to find and buy these items online. The most well-known resale platforms are Depop and eBay, and although they are not exclusively for buying and selling second hand, it’s definitely what made them in the first place.
Whilst these big names have somewhat monopolised the resale market in the past, many brands have identified an opportunity to profit from the surge in demand for pre-loved items.
The brands making the most of the resale boom
In 2020, Levi’s launched Levi’s Secondhand on its own dedicated subdomain. Here fans of the iconic denim brand could snap up Levi’s signature styles at a lower price point. The results are evidence of the platform’s success, as the brand claims to have saved 41,581lbs of waste from going to landfill to date. The Buy Back and Recommerce scheme offers incentives such as gift vouchers for trading in unwanted jeans, shorts and jackets, which are then resold.
Pretty Little Thing
PLT are just one of many fast-fashion brands who have come under fire in recent years for their impact on the environment, whether it be through unethical manufacturing practices or encouraging the “wear once, get rid” attitude that is prevalent among today’s Instagram audience. As a result, many climate activists were dubious when PLT announced the launch of a resale platform earlier this year.
Speaking out the brand’s latest attempt at circularity, Creative Director-turned-influencer Molly-Mae Hauge said that the platform aims to “disrupt the fashion industry by expanding the lifespan of its garments.”
Users will be able to resell both their pre-loved PLT pieces as well as items from other brands. The site even offers a promotion for new users – zero fees for the first three months.
A step in the right direction or another move towards greenwashing? We’ll let you decide on that particular issue, but it’s clear that PLT has paid attention to the latest ecommerce trends and adapted accordingly.
A Barbour jacket is a timeless piece of clothing, which is probably why the Barbour Reloved initiative works so well. Taking old Barbour jackets that are no longer wanted, the classically British brand takes these items and repairs them in their South Shields headquarters. You’ll get a £50 voucher in return, the jacket will be “rehomed”, increasing product lifespan and reducing waste.
5 ways reselling could benefit your business
1. It’s more sustainable
These days, circularity and identifying the ways in which we can each reduce our own impact on the planet is crucial. Reselling old belongings means they are being taken care of rather than simply disposed of. Of course, there are times when an item is simply no longer usable, but making an effort to repair and resell can significantly reduce the amount of landfill waste.
2. It adds an additional revenue stream
Reselling can also increase profitability. By adding a resale channel to your selling strategy, you’re essentially opening up a whole new revenue stream that was previously unavailable to you.
3. It’s more inclusive
If the products you sell have a higher price point, a resale platform could open up a whole new demographic. Used items are naturally going to be priced lower than brand-new ones, and there are many consumers who actively seek out pre-loved products, as buying new just isn’t within their budget.
4. It retains customer loyalty
Offering an incentive for your customers’ pre-loved items is a great way to build loyalty and generate repeat business. If a customer has a voucher or discount code, they’re likely going to use it. A win-win for both the planet and your business.
5. It offers more control over your brand
With reselling becoming the norm, the fact of the matter is this: if you aren’t reselling your products, someone else probably is. If you’re running your own resale platform, you have a lot more control over the quality and authenticity of the products being resold, as well as being able to offer excellent customer service, which will help you protect your brand’s image.
Ready to resell?
When it comes to making resale a part of your ecommerce strategy, there are several things to consider: Will you integrate this platform into your existing website, or build a whole new one? How should you market this new sales channel?
That’s where an experienced ecommerce agency comes in.
From website development to digital marketing, we know first-hand what goes into the launch of a new ecommerce venture. Plus, we’ve got a wealth of experience working with sustainable brands – send us a message and we’ll be in touch.