Take-Back vs. Peer-To-Peer: Which Resale Model Is Right for Your Brand?

Take-Back vs. Peer-To-Peer: Which Resale Model Is Right for Your Brand?

Let your business goals and customer experience help you decide which branded resale model is right for your company.

min read
July 29, 2022

If your brand is ready to tap into the revenue-driving power of branded resale, but not sure where to start, this article is for you. We’re evaluating the two main resale models to consider: peer-to-peer and take-back. Both are strong options, but for different reasons. We’ll break it down to help you find the right one…

Finding the Right Resale Model for Your Business

Jumping into resale can seem like a daunting undertaking for brands that are fresh to the space. But, with support from the right partner (hint: Recurate), it should not be a heavy lift for any one person or team (hint: we’ll do the heavy lifting for you). And while the upsides are clear — adding a new revenue stream, boosting customer loyalty, and attracting a whole new audience — it pays to do your research in advance to consider which model is right for your business goals, your unique product assortment, and, most importantly, your community.

Questions to consider internally…

  • What experience is right for our current (and future) community?
  • How can we simplify the selling process for customers?
  • How much control do we want over products & listings?
  • Should the resale platform foster a sense of community?
  • Do we have the capacity to handle pre-owned inventory?
  • Do we want to repair and refurbish products before resale?

Peer-to-Peer: A Low Barrier-to-Entry & Optimized for Efficiency

Let’s first dive into the peer-to-peer resale model, in which sellers list their items on the brand’s resale platform and ship directly to buyers. Since the items remain in the seller’s closet till they ship, this method eliminates any extra shipping and warehousing, reducing emissions and costs for the brand. Aside from approving listings before they go live, supplying shipping information, and handling customer queries along the way (all of which Recurate does for our brand partners), a peer-to-peer platform is the more efficient and least resource-intensive model.

Recurate currently powers over 20 peer-to-peer resale experiences, including Steve Madden’s Re-Booted, Amour Vert’s ReAmour, Mara Hoffman’s Full Circle, and Misha & Puff’s Loop, to name a few. We work with brands to create a seamless resale experience for their customers: sellers simply log in, select an item from their order history (adding a level of authentication), and add a description, photos, and price. From there, listings are reviewed to ensure quality and accuracy and are approved before going live. Beyond the clear operational efficiencies, peer-to-peer also builds a sense of community and satisfies customers who enjoy the resale process (like hearing about an item’s first life!).

Key Benefits of the Peer-to-Peer Model:

  • More efficient, less shipping, no warehousing.
  • Builds a sense of community around resale and the brand’s platform.
  • Hands-off for brands, as items ship between customers.

Take-Back Allows for Quality Assurance & Authentication

On the other hand, take-back is an ideal option for brands that require a deeper level of authentication or want to control the process and presentation of their product. Through a take-back model, customers typically sell pre-loved items back to the brand for cash or store credit. The brand might clean, repair, and refurbish before photographing, listing, and storing the item until it sells. While this method requires an extra leg of shipping and warehousing, it allows brands to ensure their products are at the highest possible quality before going back out into the world. It also ensures that the customer’s relationship with the brand and their products always directly involves the brand itself.

This is an appealing method for brands with high-ticket luxury goods or highly technical gear that might require official authentication for customers to feel confident in purchasing pre-owned. Knowing your customer’s behavior and preferences is critical in deciding on a resale model. For brands with customers that may prefer not to list their pre-owned items and wish to engage only with the brand, a take-back model could be the branded resale option that meets their expectations and your business goals. We’re excited to launch new take-back programs in 2022, stay tuned!

Key Benefits of the Take-Back Model:

  • Allows for repair, refurbishment, and brand authentication.
  • Brands can control product quality and presentation.
  • Satisfies customers who only wish to engage with the brand.

Recurate Powers Both Peer-to-Peer & Take-Back Models

Resale is essential as we progress toward a more sustainable future in which revenue is not solely derived from the production of new items. Whichever model you choose, you can’t go wrong. Recurate works closely with every brand partner to build a resale platform that suits the unique needs of their business and community.

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