Picture this: you run an apparel brand and decide to venture into resale. You partner with a RaaS provider, select a resale model, and launch your resale platform. Everything is running seamlessly—preloved inventory is thriving, and the program turns profitable. But then a thought strikes—what if your resale success means customers stop buying your new products?
This is known as the cannibalization myth — and it’s just that, a myth. Resale models have consistently shown they complement mainline sales rather than replace them. So, if you’re considering launching a resale program, there's no need to worry about cannibalization. In fact, resale offers countless ways to enhance and grow your existing business.
Did you know that 64% of Gen Z shoppers seek out secondhand options before buying new? If your brand only offers new products, you could be missing out on this key audience as they turn to third-party resale platforms, taking their business elsewhere. By creating your own resale platform, you can tap into this secondhand-first mindset, providing a seamless shopping experience that builds loyalty and encourages customers to explore both your resale and mainline collections.
The impact is clear: up to 66%—and 50% on average—of Archive resale customers are new to the brand. One brand found that 50% of their resale customers were new, with half of those later purchasing mainline products. Another popular brand reported 48% of their resale customers were new, with 19% going on to shop mainline as well. Therefore, resale doesn’t just complement your business—it helps you reach new audiences, driving lifetime value and deepening customer engagement.
When consumers buy your brand’s items on third-party resale sites, you lose control over their experience, which can be marred by poor-quality photos, slow shipping, or inadequate customer service. By launching your own resale platform using RaaS white-label functionality, you can ensure a seamless, cohesive brand experience that aligns with your mainline site, reinforcing trust and professionalism. This approach not only enhances brand loyalty but also drives new sales. For example, one of our womenswear brand partners found that 26% of resale shoppers also purchased new items.
Furthermore, resale underscores the quality and durability of your products, while highlighting your commitment to sustainability. With 71% of consumers prioritizing sustainability in their fashion choices, offering a resale program demonstrates your dedication to a circular business model and keeps your brand relevant to eco-conscious shoppers. A branded resale program goes beyond protecting your reputation—it strengthens customer connections, builds loyalty, and drives long-term growth.
Resale not only helps you reach new customers and build brand loyalty but also unlocks new streams of revenue that drive your mainline business forward. When a customer sees a sold-out product on your site, they’re unlikely to wait for a restock—instead, they’ll turn to a third-party resale site or even shop with your competitors, resulting in lost sales and potential new customers. By integrating resale into your business model, you can redirect these customers to secondhand versions of the same product on your resale platform, keeping them within your ecosystem. Dr. Martens has been testing a strategy of directing customers from its mainline site to its resale platform, ReWair, when items are sold out, ensuring no sales opportunity is missed.
Moreover, resale transforms your revenue model by turning a single product sale into a recurring source of profit. The high-quality items you’ve designed to last can generate revenue multiple times through resale, maximizing their value and extending your brand’s impact. These new revenue streams complement your mainline by keeping customers engaged with your brand, driving repeat purchases, and reinforcing the value of your core products without taking away from new sales.
At Archive, we’ve partnered with over 50 brands to launch resale programs, and not one has experienced a decline in mainline sales due to their resale efforts. While the fear of cannibalization is common among brands considering resale, it’s entirely unfounded. In reality, adding a resale platform enhances brand value, attracts new customers, generates additional revenue streams, and even drives mainline sales. The idea of resale cannibalizing new sales is simply a myth.
.png)
