.png)
How resale is evolving from sustainability experiment to strategic revenue engine
The secondhand fashion and luxury market is forecasted to grow 2-3x faster than the first-hand market through 2027, according to McKinsey and Business of Fashion’s latest State of Fashion 2026 report.
2025 was the year resale crossed from pilot to profit center. 2026 is the year it scales. Resale is being integrated into annual planning, revenue targets, and growth strategies, marking the end of “set it and forget it” resale programs being enough.
At Archive, we’re seeing this shift play out in real time across our brand partners. Where brands once approached resale cautiously—testing models, proving ROI, and building internal buy-in—they’re now treating it as a core growth lever. Resale has earned its place as a strategic revenue channel driving customer acquisition, margin recovery, and brand loyalty.
Here are Archive’s six predictions for how resale will continue to reshape retail in 2026:
Globally, 59% of consumers say they are likely to purchase secondhand in 2026 and nearly half choose resale first when shopping, citing value as a key driver.
But affordability alone doesn't explain the momentum. 61% percent would continue shopping resale even with more money to spend, pointing to the thrill of discovery and finding unique pieces. Tariffs and rising prices accelerate the trend, but the cultural shift—from necessity to preference—is what sustains it.
For brands, the reality is clear: your customers are already shopping secondhand, with or without your involvement. Archive data shows that on average, 50% of brand-owned resale shoppers are new to the brand. The question isn’t whether a secondary market exists for your products, it’s whether you’ll own it or cede it to third-party marketplaces.
Extended Producer Responsibility (EPR) regulations are moving from concept to reality. California’s SB707 makes brands responsible for product end-of-life starting in 2028, while similar regulations are already in effect across the EU.
Existing resale programs count toward EPR compliance requirements, transforming them from sustainability initiatives to strategic regulatory assets. As we highlighted at Archive’s inaugural Resale Summit in October 2025, brands that invest in circular models now will have first-mover advantage and the opportunity to shape policy through early engagement with Producer Responsibility Organizations (PROs). Brands that act now can build resale programs that serve both business goals and compliance needs.
We expect SB707 to be the first piece of regulation, but not the last. As regulators aim to catch up to the EU, more states will introduce EPR-style requirements, and brands will need to show measurable, scalable end-of-life solutions, not just sustainability claims.
AI is solving resale's biggest friction point on both sides of the marketplace. For brands, AI is streamlining operations that historically made resale unprofitable—from authentication to pricing to inventory management.
For shoppers, AI is making discovery seamless despite unpredictable secondhand inventory, by helping shoppers find what they’re looking for, or discover entirely new styles—creating confidence in buying unique, pre-owned products
In 2026, agentic commerce will make secondhand shopping as seamless as shopping new, while providing brands a stronger operational foundation for resale, maximizing profit margins and work efficiently as programs scale.
Footwear is having a breakout moment in resale, and tariff pressure will only accelerate this trend. Archive data shows footwear sales are up 78% year-over-year across all brands, with same-brand footwear GMV up 63%. In 2025, brands like Karhu and Ecco joined Dr. Martens, Ariat, and New Balance—and we expect many more footwear brand launches in 2026.
As tariffs push mainline footwear prices higher, brand-owned resale captures price-sensitive shoppers. By remonetizing returns, damages, and inventory already produced, brands can capture this customer and maintain margin.
For footwear brands with loyal customer bases, resale is a competitive necessity to keep your price-sensitive shoppers in your ecosystem.
In 2025, Archive expanded resale beyond fashion and footwear, to fitness equipment (Peloton), hard goods (Yeti), bridal (a&be), and children's toys (Lovevery).
These first movers in their respective categories demonstrate the diversity of resale and the appetite for secondhand finds across industries. As customers continue to rank value as most important when shopping, the brands that are most successful in owning and scaling their resale business have strong product durability and brand loyalty.
Not every brand or product is built to last, but for those that make that investment, brand-owned resale ensures they’re rewarded by capturing the long-term value of products designed for durability.
We expect this acceleration to continue and are excited to see where 2026 takes the industry.
The line between "new" and "used" shopping is blurring, and not just because of affordability. Nearly half of consumers (48%) now choose to shop secondhand first.
This shift in consumer behavior is pushing brands to rethink how resale fits into the customer journey. Some are testing redirects to resale when mainline items are out-of-stock, while others are surfacing pre-owned options directly on mainline product detail pages. The goal: keep customers in your ecosystem rather than losing them to third-party marketplaces.
The business case is compelling. Repeat customers account for just 25% of a brand's customer base but generate 50% of revenue, and customers who shop both resale and mainline demonstrate 2-3x higher LTV than those who only shop full-price. Resale deepens customer relationships and creates more engagement touchpoints.
In 2026, expect brands to treat resale as part of the core customer journey and a natural extension of how customers want to shop, rather than a separate channel..
McKinsey and Business of Fashion put it clearly: “While operational hurdles remain, the lure of untapped revenue will make resale an increasingly attractive way to bolster business models and brand perception.”
The data backs this up. The secondhand fashion and luxury market will reach $317 billion by 2027. Brand-owned resale is reaching an inflection point as scale and technology unlock profitability for brands while creating a "brand halo" around the primary offering by acquiring new customers, reinforcing perceptions of quality and durability, and creating loyalty loops.
For brands, the question is no longer "should we do resale?" It's "how quickly can we scale it?"
At Archive, our brands have scaled resale from pilot projects to meaningful revenue channels. The time to “test and see” has passed. The brands winning today are setting revenue targets, building dedicated teams, and integrating resale into their core growth strategy.
2026 is the year resale earns its place as a defined business unit. The brands that have already acted and those that act now are gaining strides in customer acquisition, margin recovery, and brand loyalty that will compound for years to come.
Ready to discuss what's possible for your brand?
Chat with our resale experts for a strategy call.
