Children’s apparel retailer Hanna Andersson has always considered itself sustainability-minded, says Kara Carter, chief product officer.
“We’ve seen our customers pass down clothing within family and friends and from generation to generation,” she says.
The brand also noticed it was popular on other resale platforms. Hanna Andersson wanted to offer its own peer-to-peer reseller marketplace. It wanted a “seamless integration,” Carter says. The brand turned to Archive. The software platform allows brands to customize its own secondhand marketplace website.
It’s a move that other retailers are making, with $177 billion in secondhand global sales in 2022, according to ThredUp’s 2023 resale report. Resale continues to grow, as the report projects the secondhand industry will nearly double to $351 billion in global sales by 2027. The same data predicts resale goods will account for 10% of all clothing in 2024.
Since launching Hanna-Me-Downs, resellers have listed more than 55,000 items on the website.
Hanna-Me-Downs is an online resale marketplace
Hanna-Me-Downs launched in February 2023. Sales for the resale store were four times higher during the first month than expected. The average seller sells about 10 items. Sellers receive cash or Hanna Andersson gift cards. They receive 125% of the value of their sale price if they choose store credit.
Cash recipients receive 70% of the sale price. Hanna Andersson and Archive declined to disclose how the remaining 30% is split between Archive and the brand. Archive charges a monthly software-as-a-service fee and a percentage of sales.
Since February, 90% of sellers have chosen a credit option, Carter says. Since launching Hanna-Me-Downs, customers have spent more than 200% of their credit value on Hanna Andersson’s main direct to consumer website.
Reselling online
Carter says the retailer has acquired new customers through its resale site. The retailer offers apparel items like children’s baby zip sleeper in organic cotton. This item retails for $42.00 but costs about $13.00 to $20.00 on the resale site.
Archive asks sellers to describe any defects or problems with items they plan to resell on the Hanna-Me-Downs resale store.
Archive built a condition-grading tool for sellers to indicate if there are any flaws with clear descriptions.
While most items indicate that the condition is “excellent with no major issues,” other items with more flaws are priced accordingly. A Circle Pocket Dress in French Terry retailed for $50.00 but was priced as $10.00 on the resale website because “item has a minor stain.”
The goal is to be as transparent as possible. This dress is noted by the seller to have a “minor stain” and is priced at $10.
It’s important to be transparent about the condition of items, says Emily Gittins, CEO and co-founder of Archive. Archive “owns” the customer service portion of the resale site, she says.
“We take on the technological development and customer service burden of managing the marketplace,” Gittins says. Most brands are able to launch their reseller website within a couple of months, she says.
How resale fashion works through Archive
Brands provide Archive with product data. Sellers enter the style ID of an item found on the care label. Sellers can input the SKU from the garment they purchased. In some cases, if there is no tag, the seller can name the item by searching.
The seller is then prompted to answer questions about the item’s condition. This includes whether it’s been worn, is missing buttons or has broken zippers. Sellers are then asked to upload photos of the actual item they plan to sell.
The software’s pricing algorithm takes into consideration the demand for an item and the condition. Online resellers can also adjust the price if it’s an item they will only sell for a certain price, Gittins says.
‘Second Hand September’
In efforts to promote donating, reusing and rewearing clothing items, Archive is working with brands like M.M.LaFleur, DVF (Diane Von Furstenberg), Faherty and ba&sh, among others to encourage customers to upload items to the retailers’ resale sites during Second Hand September.
Hanna Andersson Corp. ranks No. 477 in the Top 1000, Digital Commerce 360’s ranking of North America’s online retailers by web sales.
“Since September marks both New York Fashion Week and back-to-school, most fashion brands focus on newness during the month,” Gittins said in a statement. “That makes September the perfect time for forward-thinking brands to establish a new narrative by spotlighting their resale offerings.”
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