How Branded Resale Programs Increase Revenue and Build Loyalty

In an age where sustainability and affordability are at the forefront of consumer decisions, branded resale programs have emerged as a solution for businesses looking to stay competitive. 

These programs allow brands to facilitate the resale of pre-owned items directly within their ecosystem, offering a seamless and engaging experience for both sellers and buyers.

The benefits of branded resale programs are twofold. First, they unlock new revenue streams by monetizing items across multiple sales cycles, extending the financial lifespan of products. 

Second, they foster stronger customer loyalty by aligning with values like sustainability and community engagement, which are especially important to younger generations.

Branded resale is more than a trend; it’s a strategic growth model. By integrating resale into their operations, companies can cater to the growing demand for secondhand goods while also addressing environmental concerns. 

This model empowers brands to take control of their narratives, build deeper connections with their customers, and contribute to a more sustainable future.

The Resale Revolution: Why Branded Resale Programs are Booming

Explosive Market Growth

The resale market is experiencing unprecedented growth, far outpacing traditional retail. In fact, the resale sector is expanding 16 times faster than the broader retail clothing market. This shift is driven by consumers who increasingly value secondhand shopping for its affordability and environmental benefits.

Notably, 74% of U.S. consumers are open to buying secondhand, reflecting a significant cultural shift. The resale market is expected to continue its meteoric rise, making it a critical area of focus for brands looking to adapt and thrive in this evolving landscape.

Changing Consumer Preferences

The popularity of resale is fueled by a combination of affordability, sustainability, and access to premium brands at lower price points.

Younger generations, particularly Gen Z and Millennials, are at the forefront of this movement. A significant 45% of Gen Z shoppers report being more likely to engage with brands that offer secondhand options alongside new products.

Resale also caters to eco-conscious consumers who prioritize reducing waste and supporting sustainable practices. 

By participating in branded resale programs, shoppers can feel good about their purchases, knowing they are contributing to a circular economy.

Control the Ecosystem

Historically, the secondhand market has been dominated by third-party platforms like Poshmark and The RealReal. While these marketplaces offer convenience, they leave brands out of the loop in terms of customer engagement and product representation.

Branded resale programs give companies the opportunity to take ownership of their resale ecosystem. 

This control allows brands to maintain quality standards, ensure consistent messaging, and provide a cohesive customer experience. By owning the resale experience, brands can also foster stronger customer loyalty, creating deeper connections with their audience compared to third-party platforms like Poshmark. 

Additionally, it enables brands to capture valuable data about consumer preferences, which can inform future product and marketing strategies.

How Branded Resale Programs Increase Revenue

New Revenue Streams

One of the most compelling reasons for brands to adopt resale programs is the ability to monetize pre-owned goods across multiple sales cycles. Instead of earning revenue solely from the first sale, brands can profit as items change hands, extending their financial value.

For instance, Patagonia’s Worn Wear program has successfully created a thriving market for secondhand outdoor gear, driving revenue while reinforcing the brand’s commitment to sustainability. 

Similarly, Lululemon’s Like New initiative allows the company to refresh and resell trade-ins, tapping into a market of budget-conscious shoppers.

Attracting New Customers

Branded resale programs attract a diverse customer base, including price-sensitive shoppers and those drawn to sustainable practices. According to Treet, 50% of resale shoppers are new to the brands they buy from, making resale an effective tool for customer acquisition.

By offering lower price points and focusing on eco-conscious values, brands can reach consumers who might not have engaged with them otherwise. 

These new customers are not only drawn in by the affordability of resale but are also likely to develop brand loyalty as they engage with the program.

Increased Engagement

Resale listings are frequently updated, often on an hourly basis. This constant refresh of inventory creates a dynamic shopping experience that not only keeps customers coming back to browse for new items but also fosters long-term retention by encouraging habitual engagement.

The increased site traffic translates to more opportunities for brands to engage shoppers, upsell products, and drive conversions, solidifying customer loyalty over time.

Building Customer Loyalty Through Resale

Incentives for Repeat Purchases

Trade-in programs are a cornerstone of branded resale programs, offering customers incentives like store credit for their preloved items. 

This approach not only encourages repeat purchases but also strengthens the relationship between the customer and the brand.

For example, 84% of Rough & Tumble sellers opt for store credit over cash, demonstrating the program’s effectiveness in fostering brand loyalty. Customers who participate in trade-ins are more likely to reinvest their credits in new or resale items, creating a cycle of engagement and retention.

Emotional Connection

Sustainability has become a key driver of emotional connection between consumers and brands. 

Shoppers feel a sense of pride and purpose when participating in initiatives that align with their values. 82% of consumers report positive emotions when purchasing secondhand items.

This emotional resonance translates into stronger brand loyalty, as customers perceive the company as aligned with their personal beliefs and priorities.

Community Engagement

Peer-to-peer resale models, in particular, foster a sense of community among customers. These platforms enable buyers and sellers to interact directly, creating a shared appreciation for the brand and its values.

A notable example is Tea Collection’s resale marketplace, which emphasizes community building by encouraging users to connect over shared experiences with the brand. This approach not only deepens customer relationships but also enhances brand advocacy.

How Branded Resale Programs Advance Sustainability and Future-Proof Brands

Alignment with Circular Economy Principles

Branded resale programs stand out as a practical embodiment of circular economy principles. 

These programs extend the lifespan of products, allowing items to be reused and resold rather than discarded. This shift directly addresses the staggering 11.3 million tons of textile waste generated annually in the U.S., where clothing accounts for a significant portion of landfill waste. 

By keeping products in circulation, resale initiatives reduce the need for new production, lowering carbon emissions and resource usage.

Brands like Patagonia and Eileen Fisher have successfully adopted resale to minimize their environmental impact. 

Patagonia’s Worn Wear program repairs and resells outdoor gear, significantly cutting down waste while promoting its commitment to sustainability. 

These initiatives highlight how resale can combat the environmental consequences of the fashion industry while aligning with broader sustainability goals.

Branding and PR Benefits

Consumers today are more conscious of the environmental impact of their purchases, and they gravitate toward brands that take meaningful steps to address these concerns. Incorporating resale into a brand’s operations signals a commitment to sustainability, boosting reputation and enhancing public perception.

Resale programs also generate positive press coverage, positioning brands as pioneers in sustainable practices. 

When IKEA expanded its Buy Back & Resell program, it received widespread praise for integrating circularity into its business model. The public relations benefits of such programs can solidify a brand’s identity as an eco-conscious leader, fostering trust and loyalty among customers.

Consumer Demand for Eco-Friendly Practices

Younger generations, particularly Gen Z, have shown a strong preference for brands that prioritize environmental stewardship.

58% of Gen Z shoppers believe brands should play a more active role in reducing fashion’s environmental impact. These consumers value transparency and are willing to support businesses that align with their values.

Resale programs cater to these preferences by offering a tangible way for customers to participate in sustainability efforts. 

The opportunity to purchase pre-loved items at lower price points while contributing to a greener planet appeals to both their wallets and their principles.

Steps to Launch a Successful Branded Resale Program

Define Objectives

The first step in launching a branded resale program is to clarify the goals the initiative aims to achieve. Objectives may include:

• Revenue Growth: Generating new income streams by monetizing pre-owned goods.
• Customer Retention: Encouraging repeat purchases through trade-in credits or loyalty incentives.
• Sustainability Impact: Reducing the brand’s carbon footprint and textile waste.

Clear objectives help guide decisions about program design and execution, ensuring alignment with overarching business goals.

Choose the Right Model

Brands must determine whether to adopt a managed branded resale program or a peer-to-peer (P2P) platform.

• Managed Resale Programs: These involve outsourcing operations to third-party providers like ThredUp’s Resale-as-a-Service (RaaS). Providers handle logistics, inventory, and customer service, allowing brands to focus on marketing and integration.
• Peer-to-Peer Platforms: Solutions like Treet or Archive empower customers to buy and sell directly to each other, fostering community engagement while keeping operations lean.

Each model offers distinct advantages. Managed branded resale programs are ideal for scalability, while P2P platforms work well for community-driven brands.

Customer Incentives

To encourage participation, brands should offer meaningful incentives for sellers and buyers:

• Trade-In Credits: Customers receive store credit for preloved items, which they can use to purchase new or resale products.
• Loyalty Points: Reward resale participants with points that contribute to discounts or exclusive perks.
• Exclusive Access: Offer early access to resale inventory as an incentive for loyal customers.

These strategies not only drive engagement but also build deeper connections with the brand.

Marketing the Program

A robust marketing plan is essential for launching a successful branded resale initiative. Strategies include:

• Leveraging social media to highlight sustainability benefits and showcase unique resale items.
• Sending email campaigns to inform existing customers about the program and its incentives.
• Partnering with influencers to amplify reach and credibility, especially among eco-conscious demographics.

Highlighting the program’s impact—such as the amount of waste diverted from landfills—can inspire participation and advocacy.

Operational Setup

Ensuring seamless operations is critical for long-term success. Brands should:

• Streamline Logistics: Develop efficient processes for returns, inventory management, and shipping.
• Standardize Quality Control: Implement protocols to ensure resale items meet the brand’s standards for condition and authenticity.
• Optimize Pricing: Balance affordability for consumers with profitability for the brand.

Operational excellence ensures a positive customer experience, driving repeat participation.

Overcoming Challenges in Branded Resale

Logistical Complexity

Managing the flow of pre-owned items, from trade-ins to fulfillment, can be challenging. Investing in technology solutions or partnering with third-party providers can streamline these processes. 

For example, platforms like ThredUp’s RaaS handle end-to-end logistics, reducing the operational burden on brands.

Pricing and Profitability

Determining the right pricing strategy is crucial. Resale items must be affordable enough to attract shoppers but profitable enough to justify the effort.

Brands can use dynamic pricing models, adjusting prices based on demand and condition, to strike the right balance.

Maintaining Quality

Ensuring product authenticity and condition is vital for maintaining customer trust. 

Brands should establish rigorous quality checks and consider using AI tools for automated inspections. Clear guidelines for acceptable trade-ins can also help uphold standards.

Future Trends in Branded Resale

Technology Integration

AI-powered quality checks can automate inspections, while personalized recommendations can enhance the shopping experience.

Additionally, seamless integration with ecommerce platforms will make resale more accessible for both brands and consumers.

Resale-Driven Loyalty Programs

Future branded resale programs will likely be deeply integrated with loyalty systems, rewarding customers for participation. This alignment creates a virtuous cycle of engagement, retention, and advocacy.

Mainstream Adoption

As resale becomes a core revenue model, more brands across industries—not just fashion—are expected to embrace it. 

Predictions suggest that resale could become standard practice, reshaping retail’s approach to sustainability and consumer engagement.

Increase Revenue and Gain Lifelong Customers with Branded Resale Programs

Branded resale programs offer a transformative opportunity for businesses to drive revenue, build loyalty, and champion sustainability. By aligning with circular economy principles, these initiatives address pressing environmental challenges while appealing to modern consumer values.

For brands, early adoption is a competitive advantage, positioning them as leaders in a rapidly growing market. As resale continues to evolve, its potential to reshape retail is undeniable. Now is the time for brands to embrace resale as a strategic pillar of their long-term growth strategy—benefiting their bottom line, their customers, and the planet.

About the Author: As the Director, Marketing at adQuadrant, Nick Grant leverages more than 20 years of experience working across a variety of tech verticals. Nick grew up in California and earned his BS in Business with a concentration in Entrepreneurship. After college, he relocated to Seattle to pursue his passion for startups, where he worked at various dot-coms before co-founding a successful visual strategy agency in 2010. Now back in California, Nick spends his time hiking around San Luis Obispo County with his wife and son, honing his talent as a concert photographer, and perfecting his handstand skills.