Resale is a niche market that is difficult to make profitable in the e-commerce space, according to experts. While retailers and brands may be experimenting with resale to drive traffic to stores, experts note that online resale platforms are not seeing profit margins, with ThredUps gross profit falling 7% to $45m in Q4 2021. Companies such as Trove and Recurate, which work with Canada Goose, On, and Lululemon, among others, declined to reveal their profitability. While research indicates that resale is on track to reach $350 billion globally and $70 billion in the US by 2027, it is unclear whether companies can capitalise on the trend, with some players such as luxury resale e-retailer The RealReal at risk of bankruptcy.
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