Recommerce: How to Start a Resale Program (2026)

Recommerce turns returns, trade-ins, and used products into revenue. Explore how resale programs work and how to start one.

The term recommerce comes from reverse commerce, a play on ecommerce that describes products moving back into circulation through resale, refurbishment, or peer-to-peer marketplaces. 

Secondhand shopping is now mainstream. OfferUp’s Recommerce Report found that 93% of Americans bought something secondhand in 2025. That change in behavior influences how retailers think about inventory, pricing, customer trust, and product lifecycles.

This guide covers how recommerce works and how to turn used goods into a revenue channel. 

What is recommerce?

Recommerce, or reverse commerce, takes used products back from customers and sells them again in stores or online. Traditional retail starts with new products, while recommerce puts existing products back on sale.

Recommerce happens through buyback, trade-in, or upcycling programs that let customers return used products in exchange for money or store credit. Retailers then clean up the items and resell them, in-store or online, at a reduced price. The process is part of the circular economy, where products stay in use longer and create less waste.

Recommerce market size and growth

ThredUp’s 2026 Resale Report projects the global secondhand apparel market will reach $393 billion by 2030, representing 10% of total apparel spend. In the US, ThredUp says the secondhand market grew nearly four times as fast as the retail clothing market in 2025.

Sustainable fashion brands can treat resale as a separate sales channel. Used items can sit beside new inventory online, in-store, or in a dedicated resale collection. This gives customers the option for a lower price point and gives store owners a second sales opportunity for returned products.

The recommerce industry is part of the circular economy because it keeps products in use beyond their first owner, reducing the resources needed to create new products. For instance, the textile industry creates 2% to 8% of global greenhouse gas emissions and uses the equivalent of 86 million Olympic-sized swimming pools of water per year, according to UNEP’s 2025 annual report. 

Recommerce gives store owners a way to connect sustainability messaging to sales. A resale or trade-in program shows customers how products can stay in use longer and gives them a clear alternative to throwing items away.

Consumers buy secondhand for price and environmental reasons. eBay’s 2025 Recommerce Report found that 89% of surveyed consumers expected to spend the same amount or more on pre-loved goods in 2025. The top reason was saving money, cited by 81% of respondents. Sustainability and environmental benefits mattered too, with 45% naming them as a reason for buying pre-loved goods.

Types of recommerce

Recommerce can take several forms depending on how products move back from customers to retailers or other buyers:

• Buyback. A buyback program encourages people to return their pre-loved items by offering cash or credit for future purchases. tentree, for example, runs a Circularity program that lets customers recycle pre-loved clothing in exchange for tentree credit.
• Trade-in offers. Trade-in offers give customers credit for returning used products. M.M.LaFleur, for example, lets customers mail in or drop off second-hand M.M.LaFleur pieces and redeem earnings as cash or M.M.LaFleur credit.
• Upcycling. An upcycling program reuses old items and turns them into newer products. Rothy’s, for example, accepts worn Rothy’s shoes so they can be recycled into something new.
• Rental and leasing. A rental or leasing program lets customers use products for a set period of time instead of buying them outright. Renascence Studio offers dress rentals to complement its pre-owned luxury resale and consignment products.
• Subscription recommerce. A subscription recommerce program gives customers recurring access to pre-loved or refurbished products through a subscription model. Nuuly lets customers rent six clothing items per month for a set subscription fee. 
• Peer-to-peer facilitation. Peer-to-peer resale lets customers buy and sell used products directly through a retailer's platform or marketplace. eBay’s marketplace allows people to buy and sell a wide range of items directly from one another. 

Some retailers combine recommerce programs with customer incentives. Cuyana, for example, runs Revive, a resale program for its bags and small leather goods. 

Cuyana

Customers can buy and resell gently used Cuyana pieces through the Revive marketplace. The program also accepts donations from the broader Cuyana collection.

The benefits of recommerce

Here are the reasons retail businesses are getting involved with product resales:

• Convert price-sensitive shoppers. In SHEIN’s 2025 Global Circularity Study, 71.6% of respondents said they always consider price when buying clothing online. For premium brands, selling used goods gives shoppers a way to buy at a lower price without changing prices on new products.
• Cost savings and price control. Instead of manufacturing the same product multiple times for individual customers, resell the same item to several people. This shortens your retail supply chain while maximizing the revenue each item generates.
• Incremental revenue streams. Recommerce creates revenue beyond the first sale. Luxury resale and consignment marketplace The RealReal reported $2.13 billion in 2025 gross merchandise volume (GMV) and $693 million in total revenue.
• Sustainability. The traditional make–use–dispose model treats products as finished after one owner. Recommerce contributes to a circular economy by extending product lifecycles through resale, repair, or refurbishment. It also reduces the natural resources needed to create new products. 
• Conscious consumption. Shoppers are already factoring resale into purchase decisions. The RealReal reported that 47% of consumers now consider resale value when buying in the primary luxury market. Apps like Depop and Poshmark have made peer-to-peer resale familiar to shoppers who want to recirculate clothing instead of discarding it.
• Encourage retention. Resale gives customers a reason to return after the original purchase. They can sell products back, use resale value toward future purchases, or buy refurbished items from a brand they already know.

Challenges of recommerce

A recommerce program adds work in five areas:

• Unpredictable supply. Inventory depends on what customers return, trade in, or consign. On eBay, data shows that 86% of recommerce sellers source inventory from their own belongings. There’s no guarantee a customer will sell through a recommerce program. 
• Condition grading. Used products need a clear rating system before they can be listed. The challenge is deciding how much wear changes the price and whether the item should be resold at all.
• Pricing accuracy. Resale pricing changes by condition, demand, scarcity, and market trends. Store owners need enough data to price products accurately and still earn a profit. 
• Returns and customer trust. Return policies still affect buying decisions. ReturnPro’s 2025 consumer survey found 83% of consumers said a retailer’s return policy would influence their decision to shop there. For recommerce, product pages need clear details on the item’s condition and any relevant information about returns.
• Cash flow management. Store owners who review finances less often have higher rates of inventory and cash flow issues, according to Shopify’s November 2025 Merchant Survey.* Those who review P&L statements and balance sheets frequently are more likely to avoid those issues. Recommerce adds inventory variation, so financial reviews should start from the first month of the program.

Before starting a recommerce program, ask:

• Which products are worth reselling?
• What condition grades will we use?
• Who approves resale inventory?
• What data will guide resale prices?
• How will we handle returns?
• How often will the team review margins and cash flow?

How does recommerce work?

Recommerce is when a retailer resells a product. The item comes from a return, trade-in, buyback, or consignment program. 

The retailer checks the product, grades its condition, sets a resale price, and lists it for another buyer. Some items need repair or refurbishment first.

Who buys recommerce products?

Younger shoppers are increasing their spending on pre-owned goods. eBay’s 2025 report found that 59% of Gen Z shoppers and 56% of millennials planned to spend more on pre-loved goods in 2025. 

ThredUp’s 2026 Resale Report also projects that Gen Z and millennials will account for more than 70% of secondhand apparel market growth through 2030.

Price is a main reason shoppers buy secondhand. BCG and Vestiaire Collective’s 2025 report found that 8 out of 10 surveyed shoppers named affordability as a top reason to buy secondhand fashion and luxury products.

What items can you sell as recommerce?

Apparel is one of the main recommerce categories. OfferUp’s 2025 Recommerce Report found that apparel makes up 25% of the $200 billion-plus US ecommerce market.

Clothing and shoes also the top buyer categories on eBay’s marketplace, according to eBay’s 2025 data. The report also names collectibles, trading cards, antiques, and vintage goods as active resale categories.

Luxury resale is concentrated in a few categories. BCG and Vestiaire Collective’s 2025 report found that leather goods, clothing, and shoes account for about 80% of the secondhand fashion and luxury market. The same report found that secondhand items make up 28% of surveyed shoppers’ wardrobes. That share rises to 30% for clothing and 40% for handbags.

Tips for launching a recommerce program

• Confirm which products can be resold
• Have strict quality control criteria
• List on recommerce marketplaces
• Use a dedicated recommerce app

Confirm which products can be resold

Not all products in your retail store will be eligible for recommerce. Review your product catalog and sort items by resale safety, product condition, and residual value.

Items that can’t be resold include:

• Skincare or makeup items
• Hygiene products, such as sanitary items or underwear
• Items with shelf life, storage, or safety concerns, such as food and drink products

For each product, check whether it can be inspected, cleaned, verified, and resold without creating hygiene or quality concerns. 

Products that don’t meet that standard should stay out of your resale program. You may still be able to run an upcycling program for used packaging if it’s made with plastic.

Have strict quality control criteria

For brands selling refurbished products, quality control criteria cover product condition, function, and authenticity.

In a November 2025 Shopify Merchant Survey,* 48% of established Shopify store owners cited product quality as their top competitive edge, and 43% cited brand reputation. 

Set clear expectations for how refurbished products will function, using a grading scale. For branded goods, include authentication criteria to confirm items are legitimate before grading and resale.

If you’re reselling the item online, each product page should show:

• Condition grade: Such as Excellent, Very good, or Fair
• What’s included: Original packaging, accessories, inserts, charger, etc.
• Any flaws: Scratches, wear, repairs, missing parts
• Real photos: Use multiple high-quality images of the actual item or condition examples
• Return expectations: Make your return policy easy to find and specific to resale items

Educate customers on the value of recycled goods

Consumers may not be aware of the impact their purchases have on the environment. Educate these people with marketing messages that highlight the value of recommerce.

For example, Meow Meow Tweet encourages its customers to shop in bulk after their first purchase as part of its Bulk Aisle refill program.

Customers who refill the bottle from their original purchase reduce plastic packaging and save money on reorders.. All bulk purchases are delivered in lightweight aluminum bottles and come with free shipping as an added incentive.

List on recommerce marketplaces

Recommerce marketplaces connect buyers and sellers of secondhand goods. Alongside your own store, list pre-loved items on these online selling sites to attract shoppers:

• Facebook Marketplace
• ThredUp
• OfferUp
• Poshmark
• Etsy

Use a dedicated recommerce app 

A recommerce solution gives brands a repeatable system for taking products back and reselling them. Apps like Tern Trade-in can handle trade-in steps, pricing rules, and store credit workflows, which removes a lot of manual admin work.

Sabai Design uses resale as part of its own product takeback model. Founder Phantila Phataprasit says it’s a way to “take that product back, facilitate a resale,” and give the customer a commission on the resale. That keeps secondhand sales inside Sabai’s own platform.

If the store resells secondhand goods through their own Shopify store, a dedicated recommerce app keeps that experience inside their brand environment. 

*Based on a 2025 survey of 500 Shopify merchants conducted in English across Australia, Canada, the United Kingdom, Ireland, New Zealand, and the United States. Respondents were established merchants with more than two years on the platform. Results reflect the experiences of this specific sample and may not be representative of all merchants.

Recommerce FAQ

What is the difference between recommerce and resale?

Resale means selling a previously owned product. Recommerce refers to the business model around that sale, from trade-in or takeback through inspection, pricing, relisting, and fulfillment.

How do I start a recommerce program?

Start by identifying which programs in your catalog are eligible for resale. Determine how you’ll inspect and grade them, and set conditions to accept products back from customers. Decide how customers will return items (return, trade-in, buyback, or consignment program) and whether they’ll get money or store credit in return. A dedicated ecommerce app like Tern Trade-in can reduce manual admin work. 

Is recommerce sustainable?

Recommerce is more sustainable than traditional retail because the same item doesn’t have to be manufactured several times (which uses water, electricity, and emits CO2). When pre-owned items are resold to another person instead of discarded, it also prevents the item from going to landfill.

Why is recommerce popular?

Recommerce is popular because it lets customers secure high-quality products for a fraction of the retail price. Businesses are taking advantage of the recommerce revival and benefiting from more sustainable manufacturing processes, too.

What types of products are good for recommerce?

Products fit for recommerce hold value after the first sale and can be checked for condition before being listed again. This includes items like branded apparel, electronics, furniture, and sporting goods.