The secondhand market is booming, and while many brands are jumping on board, a common concern persists: will pre-loved items cannibalize my new product sales?
Time to debunk this understandable concern.
Resale programs are often seen as a threat to core sales, but this fear is unfounded. By launching their own resale programs, brands actually tap into a valuable customer segment: savvy resale shoppers already purchasing their items secondhand. Rather than losing these customers to competitors, brands gain control of the resale experience and attract new shoppers, resulting in overall sales growth.
Contrary to concerns about cannibalization, none of the 185+ brands we've partnered with have reported a decline in core sales. In fact, they've consistently seen an increase in both new customers and total revenue.
When studying our top-performing brand partner, we've found that resale is woven into the customer journey, not a replacement for buying new. Here's the proof:
- 77% users who buy a secondhand item go on to buy a new item on the brand's main site
- 89% of users who list an item for resale go on to buy a new item on the brand's main site
- On average, 45% of shoppers on Treet-powered resale sites are new to the brand
These stats showcase a clear trend: resale acts as a gateway to your brand, attracting new customers and encouraging repeat purchases from existing ones. It's a win-win for both the brand and the customer.
Still not convinced? Here are more reasons why resale isn't the villain some make it out to be:
- Resale is Inevitable: The secondhand apparel market is exploding, projected to reach a whopping $350 billion by 2028 (ThredUp). The question isn't whether resale exists for your brand, but whether you'll participate and capture it before it gets out of control
- New Customers: Resale shoppers are a distinct group. They're often more budget-conscious, environmentally friendly, and younger – a demographic you might not be fully reaching with your current strategy. In fact, over 45% of customers on resale platforms powered by Treet are entirely new to the brands they're buying from.
- The Math Works: Even with a small amount of customers deciding to buy used over new, the revenue growth potential of resale is undeniable. Our handy Resale ROI Calculator can help you see how this new channel will impact your bottom line.
In an average peer-to-peer and trade-in resale transaction, brands will:
- Capture a new customer
- Re-engage an existing one
- Earn revenue from the resale transaction
- Earn additional revenue when the seller uses their credit to shop new
- Lower their carbon footprint by keeping an item out of landfill
- Drive customer loyalty for the long-haul by providing this service
So, the next time someone mentions resale cannibalization, remember: it's just a scary word without much substance behind it. Resale is a strategic opportunity to reach new customers, boost sales, and create a more sustainable brand experience.
