The Resale Revolution

Increasingly, companies are reselling their own products. Should you get into the game?

by

Thomas S. Robertson

by

Thomas S. Robertson

From the Magazine (November–December 2023) · Long read

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Summary.

The average U.S. household contains a trove of potentially reusable goods worth roughly $4,500. That’s a lot of trapped value, and companies are at last getting serious about accessing it—by developing new resale capabilities. Resale has been with us for a very long time, of course—at yard sales, on used-car lots, in classified ads. But the magnitude of the market is changing, boosted by Gen Z consumers and a growing demand for sustainability. Some major brands, including Apple, Nike, Rolex, and Walmart, are moving into the market. And GlobalData estimates that the total resale market in the United States is around $175 billion.

In this article, Robertson, a former dean of the Wharton School, focuses on the potential benefits of resale and helps leaders think about whether resale makes sense for their brands. Drawing on interviews with executives who work at companies that are actively pursuing resale and at third-party platforms that have become important partners in the resale ecosystem, he offers five guidelines for resale success: (1) design friction-free processes, (2) work with a third-party platform, (3) transition to the Gen Z consumer, (4) integrate brand-loyalty initiatives, and (5) build an integrated portfolio.

Idea in Brief

The Challenge

The average U.S. household contains reusable goods worth roughly $4,500. Collectively, that’s a significant trove of trapped value—and an opportunity for companies that can access it.

The Context

The resale market is expanding dramatically. According to one estimate, the U.S. market is already approaching $175 billion, fueled in large part by Gen Z consumers and a growing interest in sustainability.

The Way Forward

Companies entering the resale market need to devise friction-free processes for consumers, consider working with third-party platforms, target Gen Z consumers, develop brand-loyalty initiatives, and build portfolios that integrate new and used merchandise.

If you’re like most people, you’re good at acquiring stuff—but not so good at getting rid of it.

A version of this article appeared in the November–December 2023 issue of Harvard Business Review.

TR

Thomas S. Robertson is a former dean of The Wharton School, where he is currently the Joshua J. Harris Professor of Marketing, the executive director of the Wharton INSEAD Alliance, and the academic director of the Jay H. Baker Retailing Center.

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The Resale Revolution

Idea in Brief

The Challenge

The Context

The Way Forward

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