Trove Future Proof Retail eBook.pdf
FUTURE-PROOF RETAIL
Winning Loyal Customers and Driving Growth with Recommerce
Retail is entering a new era.
Recommerce, the reselling of pre-owned and refurbished items, is reshaping the industry with its focus on sustainability, affordability, and smarter consumption. It’s more than a shift in shopping habits – it’s a chance for brands to attract new customers, align with evolving values, and build loyalty in ways that traditional models can’t.
In this guide, we’ll explore how recommerce creates value at every stage of the customer journey and how your business can stay ahead.
Why Recommerce Matters Now More Than Ever
Recommerce is a market and environmental necessity. The fashion industry generates 92 million tons of textile waste annually. Given this stark reality, economically the tide is shifting against constant new production, with nearly 70% of consumers willing to pay more for brands that prioritize sustainability.
Brands that act early unlock major upsides. Global resale is already a $100 billion market, growing five times faster than retail. By 2030, it’s expected to make up 23% of all retail.
From attracting value-driven customers to strengthening loyalty, recommerce doesn’t just support the customer journey – it powers it. Here’s how:
Customer acquisition:
- Win over customers who prioritize sustainability and quality with pre-owned and refurbished offerings.
Retention & lifetime value:
- Build loyalty through trade-in programs and P2P selling, keeping customers engaged long after their first purchase.
Operational efficiency:
- Simplify returns, product pricing, routing, and inventory management, ensuring smooth workflows and fast time-to-resale.
How Brands Get Started with Resale
Whether you’re new to resale or looking to scale your program, there are multiple pathways into recommerce, from trade-in programs that solve inventory and return challenges to peer-to-peer marketplaces that build customer engagement.
There’s no one-size-fits-all approach – it starts with identifying your biggest pain points and finding the path that best supports your business.
| Retail Pain Point | How Recommerce Solves It | Recommerce Entry Point |
|---|---|---|
| High customer acquisition costs | Creates a pathway into your brand for a younger, eco-conscious consumer who is more likely to buy for the first time if resale is offered | RESALE SUBSITE/TRADE-IN |
| High rate of returns | Keeps returned inventory circulating and reduces waste | RESALE SUBSITE |
| Low customer engagement with the brand | Encourages customers to resell brand items as part of a community | PEER-TO-PEER |
| Low customer loyalty / repeat customer base | Incentivizes customers to earn store credit | TRADE-IN/LOYALTY-Integrated |
| Low foot traffic and day-of conversion | Offers customers a new reason to come in, receive benefits, and engage with your in-store experience | TRADE-IN/In-Store |
| Backlog of damaged inventory and b-stock | Provides off-price channel with competitive margin recovery | REPAIR + RESALE |
PART I: CUSTOMER ACQUISITION
Building a Recommerce Program That Attracts New Customers
Recommerce is an opportunity to engage a new type of customer. By offering high-quality, affordable pre-owned items, brands can attract budget-conscious shoppers, sustainability-minded buyers, and those looking for unique finds. It’s a win-win: customers get access to premium products at lower prices, and brands build deeper loyalty while reducing waste.
Recommerce provides affordable entry points to premium goods: Pre-owned and refurbished items offer an accessible way for customers to experience your brand’s quality.
Engages a younger generation: Gen Z buyers value responsible consumption, and previously-owned products are often more appealing to this growing segment of buyers.
IN FOCUS: CONSUMER PREFERENCES
- Nearly three-quarters of consumers reported being more likely to buy from a brand for the first time if resale was offered. 72%
- More than two-thirds said they’d be more likely to make repeat purchases – whether used or new items – if resale was offered. 67%
- The share of consumers that have shifted their behavior toward more sustainable purchases in the last five years. 85%
Six Ways to Drive Customer Acquisition through Recommerce
Let’s look at a few actionable ways you can effectively build your resale program.
Integrate your program into your mainline site: Instead of a separate, hard-to-find page, make recommerce visible as part of the main shopping experience. Brands like Patagonia and Brooks Running link to their resale programs from their primary site.
Use smart promotions to drive traffic and conversion: Brands that attract first-time buyers leverage targeted digital ads and influencer partnerships. Google Shopping Ads featuring discounted pre-owned items are effective for attracting deal-seekers.
Incorporate pre-owned offerings into the mainline shopping experience: Using Trove’s Resale Plugin, Patagonia allows customers to browse pre-owned options within the new product catalog, making resale more accessible.
Use marketing to highlight brand values: Engage customers by encouraging sharing stories of their adventures with pre-owned gear, such as through Arc’teryx’s ReBIRD program.
Use an omnichannel approach: Marry customer experience with inventory optimization.
Leverage technology for customer experience and internal workflows: Use performance reporting and dynamic pricing to adjust inventory based on trends, ensuring offerings remain relevant to customers.
FUTURE-PROOF RETAIL LOYALTY & LIFETIME VALUE
PART II: LOYALTY & LIFETIME VALUE
Turning Shoppers into Advocates
Recommerce isn’t just about transactions – it’s about creating lasting connections. By encouraging re-engagement through trade-ins, tailored experiences, and peer-to-peer participation, you transform casual buyers into loyal brand advocates.
Give customers a reason to return
Trade-in programs incentivize customers to reconnect with brands. By receiving store credit and contributing to sustainability, they’re more likely to become repeat buyers.
Foster community
Peer-to-peer marketplaces allow customers to earn from the resale of their products, creating connections with other brand fans.
Five Ways to Engage Existing Customers with Recommerce
Create a customer rewards loop with smart incentives: Brands offering store credit for trade-ins see higher repeat purchases. For example, Arc’teryx’s ReGEAR initiative has processed over 100,000 items since 2019.
Simplify the customer experience: Make trade-ins seamless by offering both in-store and online options.
Connect resale with loyalty: Incorporate recommerce into loyalty programs for benefits related to resale experiences.
Highlight trade-in as the easy choice: Market trade-ins in customer communications, emphasizing waste reduction and model upgrades.
Personalize your offers: Utilize targeted email lists to highlight relevant materials and offerings.
PART III: AUTOMATION
Automation is the Backbone of Scalable Recommerce
Efficient recommerce relies on streamlined operations – and automation is key to scaling without adding operational overhead. Retailers that automate processes like product sorting, grading, and inventory routing see faster turnaround times.
Brands using automated tools can quickly assess resale value and drive greater conversion on their recommerce site.
Partner with logistics providers
Integrate logistics automation to achieve faster reselling speeds while minimizing environmental impact.
Leverage performance data for inventory optimization
Predictive analytics match pre-owned inventory with customer demand, ensuring the right products are available while enhancing fulfillment efficiency.
IN FOCUS: ReWMS
Meet Trove’s Recommerce WMS
Trove Recommerce WMS helps brands expand reach, deepen customer loyalty, and unlock circular retail potential.
Recommerce isn't just a shift in retail - it's a powerful engine for growth. By embracing pre-owned and refurbished products, brands tap into sustainability and quality demands while keeping shoppers engaged through meaningful trade-in and peer-to-peer interactions.