The Resale Market Meets Its Mainstream Moment

What was once old is new again (and again) as brands and consumers fully embrace the potential of preowned.

The resale trend has been steadily growing for years, with preconceived notions about buying used first tempered with eBay’s early internet popularity. It continued as more targeted reCommerce retail sites, such as consignment platform thredUP and peer-to-peer (P2P) marketplace Poshmark, refined the digital resale sector. These and other similar third-party sites dominated the market for years until recently, as branded resale has begun to catch on with higher-end retailers.

Reselling clothes, accessories and other items has become a popular way for consumers to both clean out their closets and make some extra side money. Indeed, per the March PYMNTS collaboration with LendingClub, “New Reality Check: The Paycheck-To-Paycheck Report,” it represents the top share of non-job supplemental income received by consumers living paycheck to paycheck without issues paying bills.

With a 10.5% share, profits from selling used items is the most popular supplemental income choice of any response by financial lifestyle. It is easy to understand resale’s current appeal, especially in this economic climate, in which buyers seek supplemental cash and sellers seek deals.

Starting in 2022, designers and retailers began coming around to resale’s benefits in how brands are authentically represented in the space. Flocking to the wildly successful thredUP, Tommy Hilfiger was one of the first designers to officially jump on the resale train with a brand-dedicated store hosted by the resale site. Now dubbed “resale-as-a-service,” thredUP hosts multiple stores by various brands such as H&M. Amazon, too, has gotten in on the resale-hosting act in a partnership with Rent the Runway in order to bring the “pre-loved” used designer apparel marketplace to a wider audience.

Given these joint successes, it was only a matter of time before additional brands got into the resale market more directly. Emphasizing its reputation for durability, Rolex announced late last year that it would certify its timepieces up for resale with its Rolex Certified Pre-Owned Program. Other major brands have since embraced the benefits of the resale market, including Canada Goose along with Lululemon, Patagonia, Eileen Fisher and recently Carhartt. Earlier this month, French luxury brand Chloe announced the rollout of digital ID with its Spring-Summer 2023 collection featuring scannable labels guaranteeing an item’s authenticity.

The days of dusty consignment shops and battered Salvation Army bins are long past. Brands joining in the trend are finding a reinvigoration of both their apparel and perhaps name recognition as consumers embrace reCommerce.