The Surge of Recommerce

Spotlight on resale

These days, wherever I go, whether I’m complimenting someone’s outfit or seeing teens shopping online on the bus—it’s impossible to overlook the rise of the second-hand fashion trend. Naturally, my mind starts working, suggesting that the preloved goods market is worth exploring. In fact, while exploring this topic, it seems that recommerce is more than just a passing retail trend; it’s a reflection of evolving consumer values and a move towards more sustainable and responsible retail practices.

The stats

The second-hand retail market, especially in apparel, is rapidly expanding, now valued at $197 billion globally. Though still a small portion of the $1.7 trillion clothing market, second-hand is growing three times faster and is projected to reach 10% market share by 2025. In the US alone, the resale market is worth $108 billion, growing at 4.5% YoY.

In the UK, resale is ingrained in the culture with charity shops and platforms like eBay. This market is expected to rise by 67.5% by 2026, driven largely by Gen Z, who turn to second-hand shopping for individuality, affordability, and sustainability. Brands offering second-hand options alongside new items are gaining popularity among younger consumers.

The business landscape

Both high-street and luxury fashion brands have introduced resale initiatives to enhance their sustainability credentials, recover lost revenue, and attract customers who may not be able to afford new products. Some companies are launching peer-to-peer marketplaces or allowing consumers to earn credits by trading in used goods. This shift by apparel retailers also allows them to protect their brand equity as well as strengthen their relationships with consumers by aligning with their values.

It’s promising that among the fashion resale platforms, Vinted, the second most important player in this space in the UK, appealing particularly to younger shoppers, reported a sales growth of 61% YoY last year and turned a profit for the first time in 2024. While the resale business comes with some challenges such as sourcing a steady supply or the cost and time involved with authenticating products, several resellers have now focused their strategy on a path that is allowing them to reach profitability.

When researching the impact of packaging on the resale platforms we made a few observations:

Most items resold are shoes, handbags, apparel and a new and fast-growing segment is refurbished electronics, and the advice is always to protect the items
Getting one’s hands on packaging can be from the local courier to the post office, in department stores or diving into the neighborhood recycle bin
The most used packaging format is some form of bag/ mailer, pouch, foil or cover as that allows to optimize the size of pack and hence the cost of shipment
One group of companies in the resale business, like Vinted, provides advice on how best to pack your item but do not facilitate the packaging acquisition
While another group of companies, like Depop, has taken the leap and recommend but also have partnerships with packaging providers to facilitate acquisition of packaging
Sellers and buyers are both critical on how they pack the items and ship as it impacts their credibility and repeat order status on the resale platform
The unboxing experience is no less important when a product is sold resale. It is more so the responsibility of the seller to ensure that the experience is as the buyer expects otherwise, they can be at the brunt of bad reviews and refunds

Going forward

Current indications show that the resale market is here to stay. Although there may be some bumps along the way as businesses adjust and the trend becomes more mainstream, it’s a sector that warrants close attention.

What packaging needs will the resale market have? Reusability and sustainability will undoubtedly continue to be key trends. Protective packaging may be crucial for the luxury segment. Additionally, different sizing options will be necessary to accommodate the diverse range of items being resold. Finally, what will users of these resale platforms accept and where will they draw the line when it comes to packaging and shipment demands.

If you’d like to discuss how to stay adaptable in response to these developments, feel free to reach out to us at BridgeInsight.