Branded Resale: A Step-by-Step Guide for Retail Brands
The fashion resale market is projected to exceed $350 billion globally by 2028. Brands that don’t participate risk falling behind. Whether you're a heritage label or DTC startup, here’s how to launch a branded resale program that adds revenue, boosts sustainability, and builds customer loyalty.
Step 1: Build Your Resale Business Case
Executives need data:
- Resale shoppers spend 2.5x more per visit when brands offer both new and pre-owned items.
- Over 60% of Gen Z prefers brands that offer circular options (ThredUp Resale Report).
Use tools like Green Story to quantify your brand’s sustainability impact.
Step 2: Choose a Resale Model
Pick the one that fits your brand:
- Take-back: Customers trade in items for gift cards
- Resale: You partner with your customers to resell their items. Items can be sold in-store, online or both.
- Resale as a Service: You partner with a third party that takes care of your resale program
- Peer-to-peer: Customers list items directly on your branded resale site.
- In-store trade-in: Drop-offs for store credit or payout.
Many of these models can be utilized in combination as a hybrid model.
See how Patagonia Worn Wear or Lululemon Like New execute hybrid models.
Step 3: Choose the Right Tech Stack
Use a platform like Circular to automate:
- AI-driven pricing
- Inventory tracking
- Commissions tracking
- Online listing
- POS and ecommerce integrations
Ideally, the technology should plug directly into your existing infrastructure to minimize the upfront investment.
You can white-label the experience to match your brand tone and visuals.
Step 4: Plan Logistics for Take-Back & Fulfillment
- Set quality criteria.
- Use services like Happy Returns or ReverseLogix for remote intake.
- Establish in-store processes for intake and quality assurance.
- Tips: Use barcodes and intake workflows through Circular for in-store programs.
Step 5: Develop the Launch Campaign
Your resale program deserves more than a press release. Plan a:
- Landing page with story, how-to, and benefits.
- Video walkthrough of the resale journey.
- Influencer collaborations with customers styling secondhand pieces.
Use Influencity or Fohr to manage resale-friendly influencers.
Step 6: Measure & Optimize
Track:
- Sell-through rate on pre-owned
- Return rate
- Repeat customers who start with secondhand and graduate to full price
Circular powers resale programs for retailers and brands that want to lead on circularity without building it all in-house. Want to see what a branded resale experience can look like? Get a demo.