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.