![](https://techcrunch.com/wp-content/uploads/2023/11/GettyImages-1475338191.jpg?w=599)
Savings are backalthough this time there is a technical twist.
A whole new generation has discovered the joy of sifting through the discarded clothes of others in hopes of finding the perfect piece. Hoping to capitalize on the trend, companies have embraced resale platforms, allowing them to retain some residual value while improving their sustainability bona fides.
If it sounds too good to be true, at least for now it is. Brand resale still has a number of issues to solve if it is going to transform retail.
Few companies have embraced resale as much as outdoor gear purveyor Patagonia. The Worn Wear program, which started as a used clothing section in stores, is now a full-fledged e-commerce site that offers discounts on items that have a lot of life in them. For brand enthusiasts, it also gives them access to back catalog items that are no longer available. It’s a decade-long experiment that teases what a future circular economy could look like.
For companies like Patagonia, brand resale is attractive for several reasons. The privately held company’s clothing has a “buy it for life” reputation, and the garments often last for years, even decades. Moreover, for a company that has linked its name to sustainability, selling used clothing is a logical extension of the brand.
For other companies, even if sustainability isn’t a key differentiator, brand resale sites can help capture some of the value that would otherwise go to second-hand marketplaces like eBay, Poshmark, Mercari and others.
To fill Worn Wear’s virtual shelves, Patagonia pays people for their old clothes. Not as much as they would get if they sold them directly on other resale sites, but it promises to be an easier process: drop off the clothes at a Patagonia store or send them in. The company’s partner, Trove, takes care of the rest.
Once an item arrives at Trove’s California warehouse, a team of employees inspects and photographs it. It also compares the item ID to a database it maintains to determine if the piece is authentic. For items that cannot be identified (perhaps the item ID is unreadable), the company uses computer vision to narrow down the possibilities. The employees record descriptions of the condition of each item so that once customers appear on the resale site, which Trove also operates, they have a good idea of what they are buying. Because every item that swings through Trove’s warehouse has different wear patterns, they all receive unique SKUs. Partners can track the performance of their resale platform through dashboards, reports and CRM integrations.
Trove has ridden the resale wave, raising more than $150 million in total, including an early investment from Tin Shed Ventures, Patagonia’s venture capital fund. It’s not the only resale platform that works directly with brands, but it’s widely considered a leader. But recently, Trove seems to have stumbled. The Series E round, which closed in July, added another $30 million to its coffers but also halved its valuation, according to PitchBook. Still, the resale company has managed to lure a dozen apparel and outdoor gear companies to its platform, including not only Patagonia, but REI, Levi’s, Lululemon, Allbirds and others.