Retail is undergoing a fundamental shift, with Gen Z leading the charge towards more sustainable and ethical shopping habits. Unlike previous generations, Gen Z consumers are not just looking for the latest trends – they want products that align with their values, including environmental responsibility, affordability, and social impact.
A significant part of this shift is the rise of recommerce, the practice of buying and selling pre-owned goods. The second-hand retail market is expected to grow three times faster than traditional retail in the coming years, with estimates suggesting it could be worth £77 billion by 2028. Brands that fail to engage with this movement risk being left behind as younger consumers increasingly turn to resale platforms over buying new.
To remain competitive, retailers must integrate recommerce into their business models, whether through branded resale platforms, trade-in programmes, or strategic partnerships with recommerce providers.
Why Gen Z Prefers Resale Over New Products
Sustainability Matters More Than Ever
Gen Z is the most environmentally conscious generation to date, and their shopping behaviours reflect this. A report by First Insight found that 62% of Gen Z prefer to buy from sustainable brands, and the resale market plays a crucial role in reducing waste.
Fast fashion and excessive consumption have led to enormous environmental consequences, with the fashion industry alone contributing to 10% of global carbon emissions. By opting for second-hand goods, Gen Z consumers are actively reducing their carbon footprint while extending the lifecycle of products.
Retailers that embrace circular economy principles – such as trade-in schemes and refurbished product sales, can attract these eco-conscious shoppers while reducing their own environmental impact.
Affordability is a Key Driver
Gen Z has grown up in a time of economic uncertainty, with rising living costs and stagnant wages making affordability a major concern. Unlike older generations, they are less willing to pay full price for brand-new items, instead seeking ways to maximise value for money.
Platforms like Depop, Vinted, and Thrift+ have surged in popularity because they offer affordable alternatives to new retail while still delivering on style and brand appeal.
Retailers can tap into this demand by offering discounted refurbished products or implementing buyback programmes where customers can return used goods for store credit. This not only fosters brand loyalty but also keeps valuable inventory within the retailer’s ecosystem rather than losing sales to third-party resale platforms.
Circular Fashion and Conscious Consumerism
Gen Z sees fashion and retail as an extension of their values, and many actively support brands that prioritise ethical sourcing and social responsibility. They are also the most likely generation to participate in the buying and selling of pre-loved items, with nearly 45% of Gen Z consumers having purchased second-hand fashion in the past year.
Brands that integrate resale into their offerings can maintain stronger relationships with these consumers. Companies like Nike, Levi’s, and Patagonia have already launched successful branded resale platforms, allowing them to reclaim and resell their products directly. This approach not only supports sustainability goals but also enables brands to retain control over pricing and customer experience.
How Retailers Can Tap Into the Recommerce Boom
Launch a Branded Resale Platform
One of the most effective ways for retailers to engage Gen Z in the recommerce space is by launching their own resale platform. Rather than allowing third-party marketplaces to capture second-hand sales, brands can take control of the resale experience and ensure that products are sold in a way that aligns with their brand identity.
For example, Trove and Recurate specialise in powering branded resale solutions for major fashion retailers, allowing companies to build their own in-house recommerce platforms. Similarly, ClearCycle provides end-to-end recommerce solutions that enable brands to manage returns, refurbishment, and resale in one seamless system.
A branded resale platform gives retailers:
- Greater control over pricing and product presentation
- A direct channel to engage eco-conscious consumers
- A way to extend product lifecycle and reduce waste
Offer Trade-In and Buyback Programmes
Retailers can further incentivise sustainable shopping by introducing trade-in and buyback schemes. These programmes encourage customers to return used items in exchange for store credit or discounts, keeping valuable inventory within the brand’s ecosystem.
This model has been highly successful in sectors such as electronics and fashion. Apple’s Certified Refurbished programme and Levi’s SecondHand initiative both demonstrate how trade-in schemes can create a circular economy while strengthening brand loyalty.
By implementing trade-in services, retailers can:
- Increase repeat purchases and customer retention
- Improve sustainability efforts by reducing product waste
- Generate additional revenue through refurbished product sales
Leverage Social Commerce and Digital Marketplaces
Gen Z spends more time on social media than any previous generation, and social commerce has become a key driver of online shopping. Platforms like Instagram, TikTok, and Snapchat are no longer just for engagement – they are now essential sales channels.
Retailers that incorporate resale into their social commerce strategies can reach younger consumers directly where they spend most of their time. Some ways to achieve this include:
- Launching live-stream resale events on TikTok
- Integrating Instagram Shops with resale items
- Creating exclusive second-hand collections marketed via social influencers
By blending resale with social commerce, brands can engage with Gen Z in a way that feels natural and authentic.
Competitors Leading the Way in Recommerce
Several companies have already capitalised on the rise of resale, and their success serves as a blueprint for retailers looking to enter the recommerce space:
- Trove & Recurate – Provide branded resale platforms for major fashion retailers.
- Thrift+ – A UK-based marketplace making luxury second-hand fashion accessible.
- Archive – Helps brands monetise second-hand goods while maintaining control over pricing and branding.
- Nike Refurbished & Patagonia Worn Wear – Leading examples of in-house branded resale.
Start Your Recommerce Strategy Today
The rise of recommerce is not just a passing trend—it’s the future of retail. As Gen Z continues to drive demand for sustainable, affordable, and ethical shopping options, brands that embrace resale will be best positioned for long-term success.
By launching branded resale platforms, offering trade-in programmes, and leveraging social commerce, retailers can tap into a lucrative market while strengthening their sustainability efforts.
At ClearCycle, we specialise in helping brands implement seamless recommerce solutions that maximise yield, maintain brand integrity, and engage modern consumers. Whether you’re looking to create a branded resale store, optimise returns management, or introduce a trade-in programme, we provide the expertise and infrastructure to make it happen.
The recommerce revolution is here—are you ready to join it? Get in touch with ClearCycle today to start building a smarter, more sustainable retail strategy.
Contact Us to learn more.
FAQs
Why is Gen Z more interested in recommerce than previous generations?
Gen Z prioritises sustainability, affordability, and ethical shopping more than previous generations. They are more aware of environmental issues and prefer to buy from brands that align with their values. Recommerce allows them to shop in a way that reduces waste, saves money, and supports a circular economy—all of which are key concerns for this demographic.
How can retailers ensure that resale doesn’t devalue their brand?
Retailers can maintain brand integrity in resale by launching their own branded recommerce platform rather than relying on third-party marketplaces. By controlling pricing, product presentation, and marketing, brands can ensure their second-hand offerings complement their primary retail business rather than undercut it. Offering refurbished products with quality assurance also helps maintain perceived value.
What is the best way for retailers to start implementing a resale strategy?
The best way for retailers to enter the recommerce market is by partnering with a specialist provider like ClearCycle. This allows them to leverage expert logistics, refurbishment capabilities, and resale infrastructure without having to build their own system from scratch. Brands can start with trade-in programmes, a branded resale store, or even marketplace integrations to test what works best for their audience.
