The Next Wave of Resale: Why We Believe Brands Will Drive the Second Wave of Secondhand

Wave 1: The Thrift Store

Wave 2: The Growth of Online Marketplaces

E-Commerce Elevates the Resale Experience

Cultural Advocacy for Sustainability Motivated Purchases

Price Sensitivity Drives Further Demand

Wave 3: Brands and Retailers Embrace the ReCommerce Opportunity

The Early Years: Retailers Reject reCommerce

Brands and Retailers Join the Game

  1. Brands Already Have Consumers’ Trust: Consumers will always have some hesitancy about quality and authenticity when buying used goods. Independent marketplaces have had to build consumer trust from the ground up to overcome this issue. Brands selling their own used products will already have established this trust and credibility
  2. Cheaper Customer Acquisition: Brands/retailers already possess high intent customer lists that can drive sales and product supply without the raw customer acquisition costs that independent marketplaces must overcome. This is important for both the sale of used goods, but also the efforts to collect used goods to be listed on their platforms.
  3. Product Familiarity: Unlike digital challengers, incumbent brands are deeply familiar with their product catalogs, making the ingestion and tagging of products more efficient and accurate. They also possess the ability to authenticate and repair products in a way that marketplaces would struggle to replicate.
  4. Physical Footprint Is Ideal for Product Take-Back: Brands and retailers with physical store footprints have sufficient presence to encourage trade-ins and returns. Consumers have a significant bias towards returning goods in person — in fact, this is why the Real Real opened physical stores, not to sell products but to receive them.

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Early-stage venture capital firm investing in technology innovators in the retail and financial services eco-systems.

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Commerce Ventures

Commerce Ventures

Early-stage venture capital firm investing in technology innovators in the retail and financial services eco-systems.

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