The resale revolution and why brands want back in

The second-hand fashion market has crossed a threshold. When eBay agreed to buy Depop from Etsy for around 1.2 billion dollars, it was another signal that resale is no longer a niche corner of retail. It has become a central part of how younger consumers shop.

For Gen Z in particular, buying pre-loved clothing is normal. It offers a mix of affordability, sustainability and discovery that traditional retail often struggles to match. Values matter to them, and so does price. Platforms like Vinted and Depop have built huge communities around a preference for clothing they can’t afford brand new, that doesn’t impact the environment This is turning resale into a mainstream channel rather than an alternative one. In the spring of last year, Vinted reported massive profits for 2024, with group revenue up by 36 percent to 813.4 million euros. Second hand sells, and it’s big business.

The numbers reflect that shift. ThredUp projects that the global second-hand apparel market will reach 350 billion dollars by 2028, growing at a faster rate than traditional retail. Meanwhile research from PwC shows that 80 percent of consumers say they are willing to pay more for sustainably produced goods. It’s marking a shift for fashion brands. While the resale economy is expanding quickly, much of that activity has historically taken place outside of the brand ecosystem.

The benefits of brand-owned resale platforms on consumer loyalty

When someone is asked where they bought a jacket or pair of trainers, the answer increasingly becomes the name of a resale platform rather than the brand that originally designed the product. “Where did you get those jeans?” “Vinted.” From a sustainability perspective, this shift is positive, extending the life of clothing and reducing waste. From a brand perspective, it’s also positive as new markets are being opened up. However, it also creates a challenge.

If the customer relationship happens on a third-party platform, the brand becomes one step removed from the experience. The name isn’t mentioned. Second sales can’t be tracked. And a brand moment is lost. That means less visibility over how products are being traded, fewer opportunities to build loyalty and secure repeat purchases, and limited insight into how customers are engaging with their products after the initial sale.

Many brands are now responding by bringing resale closer to home. We are starting to see retailers launch their own pre-loved marketplaces or trade-in schemes where customers can buy and sell used products directly through the brand. Lululemon was an early pioneer in this space with its Like New programme, while brands such as Never Fully Dressed have more recently introduced resale channels that allow them to remain part of the second-hand journey.

There are several reasons why this approach is becoming attractive. First, it allows brands to maintain control over the customer experience. Quality checks, pricing guidance and brand storytelling can all remain consistent with the rest of the retail journey. Instead of products circulating anonymously through resale platforms, the brand remains part of the narrative.

Unlocking new customer segments with pre-loved fashion

Resale can also help brands reach new customers who may not have previously bought their products. Students and budget-conscious shoppers who might find full-price items out of reach can discover the brand through pre-loved pieces. According to ThredUp, 40 percent of resale customers are new to the brand, showing how second-hand can act as an entry point rather than simply a secondary market.

But perhaps the most interesting opportunity sits in how resale connects with loyalty. Loyalty programmes are designed to keep customers within a brand’s ecosystem. They motivate and reward repeat purchases, encourage engagement and create reasons for customers to return. When resale happens on an external marketplace, that connection is lost.

If resale activity is brought into the brand environment, loyalty can play a powerful role in shaping behaviour. Brands could offer loyalty points when customers purchase pre-owned items, trade in products or participate in take-back schemes. Customers who engage with resale could unlock rewards, tier benefits or early access to new collections. In other words, buying second-hand becomes part of the same relationship as buying new.

This approach turns circular fashion into an ongoing customer journey rather than a separate marketplace. Someone might first buy a pre-loved item, earn points, then later redeem those rewards against a full-price product. Over time, the brand relationship grows stronger rather than being fragmented across different platforms.

Building brand relevance in the resale ecosystem

It also supports sustainability goals in a practical way. Encouraging resale, product returns and reuse helps extend product lifecycles and reduces waste. At the same time, loyalty incentives make those behaviours easier and more rewarding for customers – who doesn’t love some perks?

For retailers navigating rising costs, tighter margins and changing consumer expectations, resale also represents a new commercial opportunity. Instead of losing value once a product enters the second-hand market, brands can participate in that lifecycle and benefit from the additional engagement it creates.

Marketplaces like Depop or Vinted have built powerful communities and will continue to play an important role in the resale ecosystem. But brands don’t have to default to them; they can position themselves as powerful players in the ecosystem.

The conversation has moved on from whether resale matters to how brands remain relevant within it. If the next phase of fashion retail is defined by circularity, sustainability and value, the brands that thrive will be those that stay connected to their products long after the first purchase and keep front of mind. By bringing resale and loyalty together, retailers have a chance to do exactly that, keeping customers engaged whether they are buying something brand new or giving a favourite item a second life.