Recommerce risks: navigating the challenges of the secondhand market

The recommerce industry, the resale of pre-owned goods, has grown quickly, driven by sustainability concerns, economic incentives and changing consumer habits. Boston Consulting Group (BCG) and Vestiaire Collective reported in 2025 that the secondhand fashion and luxury market, which they estimate at $210 billion to $220 billion today, is growing 10% a year, three times faster than the firsthand market, and expect it to reach $320 billion to $360 billion by 2030. That growth brings challenges that buyers, sellers, platforms and brands all have to navigate to keep the secondhand market trustworthy.^1,2

One of the most pressing concerns in recommerce is making sure products are genuine. Counterfeits in high-demand categories such as electronics and luxury fashion undermine consumer trust and carry legal risk. Some are dangerous as well: US Immigration and Customs Enforcement warns that counterfeit lithium-ion laptop batteries can overheat, ignite and explode. In fashion, fake designer goods on secondhand platforms dilute brand value and erode confidence.³

Many platforms have responded with rigorous authentication. These processes are resource-intensive and do not always scale across diverse product categories, and with no verification standard shared between platforms, it is hard for consumers to judge what they are buying. Most checks also happen once, when the platform takes an item in, leaving the buyer no independent way to verify it afterwards. A purchaser should not have to rely on trust in the retailer alone.

Assessing the condition of pre-owned items is inherently subjective, which leads to inconsistent listings and dissatisfied customers. Without shared grading standards, sellers may overstate condition, resulting in returns and negative reviews. The inconsistency affects more than individual transactions; it shapes the reputation of recommerce as a whole.

Some categories, such as trading cards, have developed their own grading systems, but these have limits of their own, and no approach yet covers authenticity and condition across product types. Clearer, shared grading criteria would improve transparency and build the trust the secondhand market needs to keep growing.

Collecting, inspecting, refurbishing and redistributing pre-owned goods is complex and costly. Unlike conventional retail, recommerce depends on reverse logistics: processes for returns, repairs and restocking that demand investment and coordination, particularly across many product categories and conditions.

Supply is also unpredictable, since inventory depends on what consumers choose to return or trade in. Balancing supply and demand is difficult, and often leads to too much of what is less wanted and too little of what sells.

Recommerce operates across consumer protection, tax and product safety rules that vary by jurisdiction, and compliance is essential to avoid legal exposure and keep customers' trust. Used electronics are a clear example: data protection law, such as the EU's General Data Protection Regulation, makes the handling of a previous owner's personal data on a device a real concern for the seller. Some goods may also be restricted, or need specific certifications before they can be resold.

Keeping up requires a compliance framework and continuous attention to legal change, which weighs most heavily on smaller resale businesses.

Recommerce creates revenue, but acquisition, refurbishment, logistics and customer service all eat into margin, and pricing pre-owned goods competitively while staying profitable is a delicate balance. Cash flow is a further strain for businesses that pay up front for used goods and wait to resell them; financing tools such as invoice factoring have emerged partly to bridge that gap.

Despite growing acceptance, some consumers remain wary of secondhand goods because of concerns about quality, hygiene or stigma. Overcoming that takes clear communication and good service: detailed product information, transparent grading and fair return policies all build confidence. Connecting resale to a credible sustainability story can turn hesitation into a reason to buy.

Among resale's regular users, the habit is already deep. In BCG and Vestiaire Collective's 2025 survey of 7,800 Vestiaire Collective users, secondhand items made up 28% of their wardrobes, 30% of their clothing and 40% of their handbags.¹

The resale of branded goods raises questions of intellectual property and brand integrity. Counterfeits sold as pre-owned infringe trademarks and damage reputation, and brands have to balance support for circular consumption against protecting their marks.

Some brands have launched their own certified pre-owned programmes to keep control of how their products are resold, ensuring authenticity and quality while taking part in the secondhand market. Item-level identity makes that easier: when a product carries a verifiable record from the brand, it can resell without being authenticated from scratch, and the brand sees each sale.

Recommerce sits where sustainability, innovation and consumer demand meet. BCG and Vestiaire Collective put secondhand at about 8% of all fashion and luxury sales today, and expect that share to reach 10% by 2030. Its opportunities are real, and so are its challenges: authenticity, condition grading, logistics, regulation, margins, trust and brand protection all need deliberate attention. Businesses that address them directly will be best placed to make the secondhand market a durable part of a more resilient economy.¹

Vera gives each product that record from the day it is made: a Vera tag fitted at production, with a certificate behind it. A buyer taps the item to verify it against the brand's own record rather than having it authenticated from scratch, the certificate moves to the new owner with the item, and the sale lands on the item's record, where the brand sees it.