RESALE REIMAGINED: EVALUATING THE ENVIRONMENTAL AND FINANCIAL TRADE-OFFS OF THE DIGITAL FASHION RESALE INDUSTRY

This thesis explores the ethical, environmental, and economic implications of the digital resale fashion industry, focusing on leading platforms such as eBay, The RealReal, ThredUp, Poshmark, and Mercari. The central research question guiding this study is: To what extent do digital resale platforms contribute to sustainable fashion consumption, and how can economic and behavioral incentives enhance their alignment with circular economy principles? This inquiry is grounded in a comparative life cycle analysis (LCA), financial performance review, and investigation of consumer behavior and platform design from 2022 to 2024. The methodology combines life cycle assessment of environmental impacts—such as carbon emissions, packaging waste, and water usage—with financial analysis of revenue, margins, and monetization strategies. The study also evaluates the role of emerging technologies in platform engagement, including personalized recommendations, automated pricing, and authentication tools. Findings reveal that while digital resale platforms successfully extend the lifespan of garments and reduce the need for new production, they also introduce trade-offs. Peer-to-peer models tend to generate higher shipping emissions and packaging waste, whereas managed marketplaces offer efficiency and trust but struggle with scalability and profitability. AI enhances consumer engagement but can also fuel overconsumption. The thesis argues that resale platforms represent a promising but incomplete solution to sustainable fashion. Their benefits depend heavily on operational choices, regulatory context, and user behavior. Profitability remains elusive for most platforms, except for mature players like eBay, and sustainability efforts often rely on external partnerships and marketing rather than structural design. The study concludes by offering strategic recommendations, including the adoption of standardized eco-friendly packaging, expansion of carbon-offset programs, and deeper integration with brand-led resale initiatives. These interventions are necessary to ensure that digital resale platforms fulfill their potential as engines of both economic resilience and environmental responsibility.