Selling secondhand fashion online is as old as the web itself.
We could argue that eBay was the first successful online marketplace to exist. 25 years later, pre-owned clothing is all the rage again with buyers and sellers. With new verve, fashion retailers have pushed into the resale market. A market which is projected to become a very lucrative one.
Brands like Dior, Chanel and Gucci have already adopted the practice of so-called branded resale. Many of their competitors are following suit. Some companies have run their online recommerce programs for a while now. A survey by statista proves them right: When it comes to digital features by luxury brands, customers look forward to resale programs above all else. For regular-income customers, the market is also in full swing. Fashion businesses in the mid-price segment have started resale programs, too. This includes those often labeled fast fashion. H&M, Shein and Zara are well on board. Even sports apparel brands adopt the practice – think Lululemon, Adidas, Nike or Decathlon.
But moving from e-commerce to recommerce comes with challenges for businesses – many of which relate to payment. This article will provide insights into the matter, discussing:
- The reasons why fashion companies should enter the resale market
- The differences between branded resale platforms and secondhand P2P marketplaces
- The downsides of using a third-party payment system on a fashion resale platform
- The payment challenges fashion resale companies face