Retailer Trade-ins Encourage Trade-ups

April 3, 2020

Resale is the fastest growing segment in retail, growing 21 times faster than the retail apparel market since 2017[1].  Retailers are participating in recommerce in multiple ways. These include offering discounts for “drop-offs”, partnering with external resale sites, and using retailer trade-ins.


Retailer trade-ins provide theg reatest benefit, the deepest customer connections, and a strong ROI.


While resale isr elatively new for fashion retailers, it has been a crucial customer acquisition nd retention strategy in industries like tech, sporting goods, and autos. Tech companies like Apple use recommerce buybacks, or “trade-in”, offers to generate new iPhone sales and boost customer loyalty. Automotive companies like Toyota and Lexus employ a similar strategy.  For some vehicles, this circular process drives as much as 75% of sales[2].

Fashion retailers have lagged in this space.  When it comes to resale, they have been handing their customers over to external resale platforms. Because of this, brands have lost their spots in customers’ closets. These external resale platforms need buyers as much as sellers.  They aggressively pursue conversion opportunities, and have the additional benefit of knowing that your customer has just freed up some room.  


Patagonia, the well-known outdoors brand, has recognized this and has recently opened their own physical recommerce store.[3]  They make offers on used gear brought in by customers,and resell the items as “Worn Wear”. This model allows Patagonia to successfully embrace sustainability and keep customers loyal to their brand.  

But Patagonia is leaving value on the table.  If Patagonia used data proactively to pull items back in, instead of relying on customers to hopefully bring in items sporadically, they could more strategically manage their resale inventory and engage customers through personalized incentives.  And customers are open to this, as they are increasingly eco-conscious and now consider resale possibilities when purchasing items[4].


 Rohvi’s trade-in platform enables strategic sustainability.  Retailer sales data is applied to generate profitable trade-in offers for store credit directly with the retailer.  Coupons and discounting lead to bargain-seeking.  Rohvi’s trade-inincentives lead to upgraded spending because customers have “skin in the game”.  


Scarpa, a mid-tier luxury fashion retailer has partnered with Rohvi to run trade-in campaigns and embrace the strategic and sustainable benefits of recommerce. Using past sales data, Rohvi generates personalized trade-in offers unique to each Scarpa customer. These trade-in offers are distributed via email under the Scarpa brand and invite the customer to exchange a specific item for a fixed amount of store credit. Due to the personalized nature of these offers, the engagement rate with the emails is double Scarpa’s average open rate and the return on the credit is significantly higher than a traditional 20% off coupon.


Scarpa benefits from increased engagement, but also from the ability to maintain ownership over their customer and the related data. They have a better understanding of the cycle length of specific items in their store. They can see what customers choose to exchange and how long they own their items before they are ready to swap them for something else.


Fashion retailers using Rohvi’s trade-in platform increase customer engagement, spur higher repurchase value per incentive and are able to offer a strategic sustainability program.  The future of resale is huge.  Rohvi makes it strategic and sustainable for retailers.  

[1] ThredUp 2019 Resale Report

[2] Toyota,Subaru and Honda lead industry for trade-in loyalty.  Automotive News March 6, 2018

[3] PatagoniaOpens First Worn Wear Store.  Retail Dive November 2019.  

[4] ThredUp 2019 Resale Report

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