Giant delivery company DHL has recently announced a strategic move to tap into the growing resale market by partnering with resale company Reflaunt to offer logistics services for the resale (vintage) business. This partnership will see brands contracting with Reflaunt to manage their resale operations, with all products being handled and authenticated by DHL personnel at DHL facilities.
The process involves consumers visiting a brand's site and utilizing software provided by Reflaunt to manage the resale process. The software then coordinates with DHL for services such as pickup, sorting, grading, authentication, photography, handling, and shipping. From the consumer's perspective, the interaction appears seamless with the brand.
Resale presents a significant growth opportunity for consumer products for several reasons. It enables consumers to access brands that may have been previously unaffordable, reduces the cost of new products as part of the purchase price is recoverable, and promotes environmental sustainability by extending the life of products and reducing waste.
Despite the potential benefits, the resale business faces challenges in terms of profitability. Factors such as pricing limitations compared to new products, higher handling costs due to individual inspection of unique items, and the need for individual consumer engagement pose obstacles to profitability.
However, there are signs of progress in the industry, with companies like DHL recognizing the potential in the resale market. By leveraging existing infrastructure and resources, companies can enhance efficiency and drive profitability in resale operations.
Other players in the market, such as Open For Vintage, are also adopting innovative approaches by utilizing existing brick-and-mortar vintage boutiques to reach a global consumer base through e-marketplaces. This trend towards maximizing existing resources rather than building new infrastructure from scratch is likely to continue evolving in the future.
Looking ahead, advancements in technology may lead to a future where consumers can easily sell items from their closets by simply scanning them with a mobile device. The commitment of industry giants like DHL underscores the potential for reshaping the resale market through efficient utilization of existing resources to meet consumer demand.
