Recommerce hitting scale
The resale market is now estimated between $188 billion and $594 billion globally — Gen Z’s sustainability and bargain hunting are the main growth engines that brands can no longer ignore (dontpayfull.com). Expect more trade‑in programs and circular product plays as retailers chase those secondhand margins (dontpayfull.com).
ThredUp’s 2024 Resale Report put global secondhand apparel gross merchandise value at about $197 billion in 2023 and projected the category to reach roughly $350 billion by 2028, growing three times faster than the wider apparel market. (wwd.com) ThredUp’s Resale‑as‑a‑Service (RaaS) model now powers resale channels for roughly 30 retailers and brands, including Gap, Walmart, Adidas, Rent the Runway, Crocs and even LG, letting legacy retailers outsource grading, fulfillment and pricing. (retailtouchpoints.com) Trove, a white‑label recommerce operator, lists clients such as Levi’s, lululemon, Patagonia, REI and Allbirds and announced expanded branded‑resale operations and partner facilities across North America in mid‑2023 to meet rising demand. (businesswire.com) Trove’s CEO said the company’s AI pricing tools have already lifted resale margins by about 20% and that roughly 80% of buyers who purchase secondhand through Trove clients are new customers to the brand; Trove also noted Patagonia’s Worn Wear brought in roughly $5 million annually as of 2024. (glossy.co) Industry analyses show liquidation typically recovers only about 5–20% of an item’s original value, which is why retailers are moving returned goods into recommerce channels to reclaim value and protect margins. (thebrandhopper.com) Consumer research cited by resale platforms finds Gen Z leading adoption — ThredUp data shows about 65% of Gen Z bought secondhand in the past year and 83% view used purchases as more sustainable — a pattern other studies and platform surveys also identify as a key demand driver. (trove.com, firstinsight.com)
