Summary

Most companies leave value on the table after the first sale. Branded resale changes that, by helping brands monetize returns, B-stock, and second-hand products through their own channels. In this article, we unpack what branded resale really means, why it’s becoming a must-have business model, and how brands like IKEA, Patagonia, and Tchibo are already using it to drive revenue, loyalty, and sustainability.
Symbolic image of a shopping cart filled with boxes next to a green upward arrow, representing resale-driven revenue growth.

The Issue Behind Traditional Commerce

Traditional commerce is built around one transaction: make, sell and move on. But when products are returned, overproduced, or sit unsold in warehouses, brands lose control, and billions in value.

In the DACH region alone, €3 billion in value is lost each year because up to 30 % of returned items and B-stock are never resold.

These are perfectly functional products, often new or nearly new, that simply never find a second life.

Modern warehouse with rows of shelves and packaged goods, illustrating unsold stock and B-stock potential for resale.

Meanwhile, Others Are Cashing In on Recommerce

While brands discard or store these products, others are turning them into profit.

The European recommerce market — powered by platforms like Back Market, Vinted, or Refurbed — is expected to almost double to €69 billion by 2030.

Yet most brands see little to none of that value, because resale happens elsewhere.

So, what are brands actually missing?

  • Financially: lost revenue and higher storage or disposal costs.
  • Strategically: no control over brand perception in the second-hand market.
  • Sustainability-wise: wasted resources that contradict ESG goals.

All this sets the stage for branded resale, where companies reclaim ownership of their products’ second life, turning what used to be waste into profit, loyalty, and credibility.

What Is Branded Resale?

Branded resale means that companies take control of their own secondhand market, instead of leaving it to third-party platforms.

It’s when a brand runs the resale of its pre-owned, returned, or refurbished products under its own name, on its own channels, and with its own quality standards.

Rather than letting used products end up on Vinted, Back Market, or eBay, brands create an official way for customers to sell back their items, and for new buyers to purchase trusted refurbished or repaired ones.

These resale streams usually come from three main product sources:

  • B-Stock: overproduction, display models, or slightly defective products that can still be sold as “like new.”
  • Returns: items in perfect or nearly new condition that would otherwise sit idle in warehouses.
  • Buy-back or Trade-in: used products that customers return at the end of their life cycle for store credit or cash.

When managed well, branded resale connects all these streams in one ecosystem, where every product can have a second (or third) life, and the value stays within the brand.

Example of an English-language brand webpage called “YourBrand Refurbished,” presenting refurbished outdoor clothing as part of a sustainability initiative.
Example of a demo "Branded Resale" shop

What are the benefits from Branded Resale?

When brands take ownership of their resale channel, they unlock multiple strategic advantages. Below are some of the most powerful benefits, each with data that back them up.

1. Acquire New Customers

Resale isn’t just a way to monetize used inventory, it’s a discovery engine.

According to ThredUp’s 2024 Resale Report, 65 % of incremental secondhand spend comes from shoppers who are new to the brand.

Similarly, BCG reports that 66 % of resale shoppers say that resale allowed them to discover or buy a brand for the first time.

That means in addition to serving existing customers, brand-driven resale channels open doors to audiences that might never have engaged otherwise.

2. Increase Loyalty & Retention

Buy-back and trade-in programs generate recurring touchpoints, and thus deeper relationships.

Every time a customer comes back to sell or upgrade, they re-enter your ecosystem rather than leaving it to random marketplaces.

Also, by validating and certifying the secondhand product, you maintain quality control and customer trust — which bolsters brand loyalty.

3. Lower Costs & Improve Supply Chain Efficiency

One often-overlooked benefit: by controlling the resale flow, brands can reclaim spare parts, refurbish components, or harvest materials for repairs or new production.

That reduces dependency on fresh raw materials or external suppliers, effectively lowering sourcing and manufacturing costs over time.

Also, dealing with returned or B-stock inventory becomes an internal “asset management” function instead of a loss or waste problem.

4. Drive Incremental Spending & Upsell

When resale and buy-back are connected, the impact on spending grows even stronger.

If customers receive a voucher when trading in their product and use it toward a new purchase, redemption typically leads to a 2–6× higher spending compared to an average transaction.

Integrating buy-back into the resale journey not only recirculates products but also accelerates revenue growth by bringing customers back sooner — and with greater intent to buy.

5. Strengthen Brand Equity & Sustainability Credentials

Consumers are more likely to resonate with brands that take accountability for the full lifecycle of their products.

According to accenture, 76 % of global consumers prefer to shop with retailers that repurpose materials or services.

And 62 % say they would buy more from a brand that officially partners with a secondhand or circular initiative.

These numbers show that circular practices are no longer “nice extras”, they drive real perception and loyalty.

Smiling couple shopping online together on a tablet, representing digital resale and customer engagement.

6. Capture a Growing Market Opportunity

There’s momentum behind the recirculation-driven economy. For example, resale has grown by 650 % since 2018 in some markets. Entering early means capturing a share of that growth rather than reacting to it later.

Who Is Already Doing Branded Resale?

More and more brands are realizing that resale isn’t a side project, it’s a way to extend their business model, reach new audiences, and stay relevant in a changing market.

Here are three companies proving that branded resale works across very different industries.

IKEA: Giving Furniture a Second Life

IKEA has made circularity tangible for millions of customers through its “As-Is” and “Buy Back & Resell” programs.

Customers can return used furniture to their local store, where it’s repaired, cleaned, and resold at a reduced price. The concept keeps products in use, reduces waste, and helps IKEA move closer to its goal of becoming a fully circular company by 2030.

It’s a perfect example of how branded resale can fit seamlessly into an existing retail experience, practical, accessible, and profitable.

Read more: IKEA’s As-Is Section Explained

Patagonia: Turning Repair Into a Movement

Patagonia’s Worn Wear program is one of the most well-known resale initiatives in the world.

The outdoor brand invites customers to trade in their used jackets, pants, and gear in exchange for store credit. Each product is refurbished and resold online under the Worn Wear label — extending the lifespan of thousands of garments each year.

Beyond the environmental impact, Patagonia has built a community around reuse — showing that branded resale can deepen customer trust and reinforce brand values.

Read more: Patagonia’s Worn Wear: What Fashion Brands Can Learn

Tchibo: Circularity at Scale

Together with koorvi, Tchibo launched its first digital trade-in and resale program for coffee machines, covering everything from buy-back to refurbishment and resale.

Through our software, Tchibo can now manage every step of the process digitally: customers start a trade-in online, logistics are automated, and refurbished devices are resold directly to new buyers.

The program shows that branded resale isn’t limited to fashion or furniture, it’s just as powerful for household and electrical appliances, where quality and trust matter most.

Read more: How Tchibo Makes Sustainability Profitable

Screenshot of Tchibo’s refurbished coffee machine webshop showing different models available in certified refurbished quality.
Tchibo's Branded Resale Shop

Is Branded Resale Worth It?

The short answer: absolutely.

Branded resale is no longer just a sustainability initiative, it’s a business strategy that drives profit, loyalty, and long-term competitiveness.

By owning the second life of their products, brands can unlock new revenue streams, strengthen customer relationships, and reduce both waste and sourcing costs. It’s a model that keeps value circulating, economically and environmentally.

And thanks to digital solutions like koorvi, running a resale or trade-in program has never been easier. From product intake to refurbishment, pricing, and resale, everything can be managed within one simple system.

In the end, branded resale helps companies do what every forward-thinking brand wants: grow revenue, build loyalty, and protect the planet.

👉 Learn how to launch your own branded resale program with koorvi.

FAQs

What is branded resale and how does it differ from traditional third-party resale platforms?

Branded resale means companies take control of their own secondhand market by running the resale of pre-owned, returned, or refurbished products under their own name, on their own channels, and with their own quality standards. Rather than letting used products end up on third-party platforms like Vinted, Back Market, or eBay, brands create official ways for customers to sell back items and for new buyers to purchase trusted refurbished products. Branded resale typically combines three product sources: B-Stock from overproduction or display models, returns in perfect or nearly new condition, and buy-back or trade-in products customers return for store credit, creating an integrated ecosystem where every product can have multiple lives while value stays within the brand.

What value is lost when brands don’t control their resale channel and who benefits instead?

In the DACH region alone, €3 billion in value is lost annually because up to 30% of returned items and B-stock are never resold, with perfectly functional products often new or nearly new simply never finding a second life. Meanwhile, the European recommerce market powered by platforms like Back Market, Vinted, and Refurbed is expected to almost double to €69 billion by 2030, yet most brands see little to none of that value because resale happens elsewhere. Brands miss out financially through lost revenue and higher storage or disposal costs, strategically through lack of control over brand perception in the secondhand market, and sustainability-wise through wasted resources that contradict ESG goals, all while third-party platforms capture the value brands created.

How does branded resale help brands acquire new customers and increase loyalty?

Branded resale functions as a powerful customer acquisition engine, with ThredUp’s 2024 Resale Report showing that 65% of incremental secondhand spend comes from shoppers who are new to the brand, while BCG reports 66% of resale shoppers say resale allowed them to discover or buy a brand for the first time. Beyond acquisition, buy-back and trade-in programs generate recurring touchpoints creating deeper relationships, as every time customers return to sell or upgrade they re-enter the brand ecosystem rather than leaving it to random marketplaces. By validating and certifying secondhand products, brands maintain quality control and customer trust, bolstering loyalty while opening doors to audiences who might never have engaged at original price points.

What financial and operational benefits does branded resale deliver beyond sustainability?

Branded resale creates multiple tangible business advantages beyond environmental impact. When customers receive vouchers through trade-in and use them toward new purchases, redemption typically leads to 2-6× higher spending compared to average transactions, accelerating revenue growth by bringing customers back sooner with greater purchase intent. Accenture research shows 76% of global consumers prefer shopping with retailers that repurpose materials or services, while 62% would buy more from brands officially partnering with secondhand initiatives, directly driving perception and loyalty. Operationally, controlling resale flow allows brands to reclaim spare parts, refurbish components, or harvest materials for repairs, reducing dependency on fresh raw materials and lowering sourcing and manufacturing costs while transforming returned or B-stock inventory from loss into asset management.

Which major brands are successfully running branded resale programs and what results have they achieved?

Leading brands across industries demonstrate branded resale’s viability and profitability. IKEA’s “As-Is” and “Buy Back & Resell” programs allow customers to return used furniture for repair, cleaning, and discounted resale, supporting their goal of becoming fully circular by 2030 while integrating seamlessly into existing retail experiences. Patagonia’s Worn Wear program invites customers to trade used gear for store credit with refurbished products resold online, extending garment lifespans while building community around reuse and reinforcing brand values. Tchibo partnered with koorvi to launch its first digital trade-in and resale program for coffee machines, managing everything from buy-back to refurbishment digitally, proving branded resale works powerfully for household appliances where quality and trust matter most. Brands ready to launch their own programs can explore implementation at koorvi.com.