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The Smart Way to Use Promotions in Resale (And What to Avoid)

By Kira Sparks
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The Smart Way to Use Promotions in Resale (And What to Avoid)

6 MINS READ

Marketing a recommerce program isn’t just about letting people know it exists – it’s about making it easy, exciting, and rewarding to participate. That’s why promotions play a key role in recommerce. The right incentives don’t just move inventory, they motivate shoppers to try resale, come back for more, and even trade in their own items.

But not all promotions work the same way in recommerce as they do in traditional retail. Let’s break down how to structure strategic promotions that drive long-term engagement, not just one-time sales.

Segment your recommerce customers 

If you’re using the same promotion for every shopper, your marketing isn’t working as efficiently as it could be. Recommerce customers aren’t a monolith – they’re buying for different reasons, and their incentives should match their motivations.

Here’s how to segment your audience and serve up the right kinds of promotions:

👤 The Deal-Seeker

Who they are: Loves finding a bargain and often waits for a discount before making a purchase.
Best promotions: Limited-time sales, volume discounts (buy two, get one free), or first-time buyer incentives.
How to identify them: 

  • Frequently purchases discounted items or waits for sales.
  • Clicks on or engages with sale promotions in emails and ads.
  • Uses coupons or discount codes at checkout.

👤 The Sustainability Shopper

Who they are: Chooses resale because they want to reduce waste and shop more responsibly.
Best promotions: Trade-in credits, mission-driven campaigns (e.g., “Give your gear a second life—trade in for 15% off”).
How to identify them: 

  • Engages with sustainability messaging (e.g., blog content, mission statements, eco-friendly product tags).
  • Opens and clicks on emails promoting trade-ins or recycling programs.
  • Participates in trade-in programs or looks for responsible shopping options.

👤 The Treasure Hunter

Who they are: Looks for rare, one-of-a-kind finds and values exclusivity.
Best promotions: Early access to new resale drops, VIP loyalty perks, or personalized recommendations.

How to identify them: 

  • Signs up for waitlists or back-in-stock notifications.
  • Engages with VIP programs or exclusive access offers.
  • Opens emails or clicks ads featuring rare or one-of-a-kind finds.

When your promotions match what drives your customers, they feel relevant, exciting, and most importantly, they work.

The Best Promotions for Recommerce (That Won’t Kill Your Margins)

Discounts can drive conversions, but if they’re not structured well, they can also erode profitability and train customers to wait for markdowns. In recommerce, the best promotions encourage purchases without devaluing resale items.

Here are the top-performing promotion types we’ve seen at Trove:

1. First-Time Buyer Discounts: Convert New Shoppers

Carhartt’s Reworked program offers a $25 credit for trade ins of pre-worn jackets and coats, showing that incentives can introduce resale to new customers while building loyalty. Here’s how to bring new customers into the fold with promotions: 

  • Offer a limited-time first-purchase discount – Create urgency by making the offer valid for only 7–10 days after signup.
  • Bundle discounts with a trade-in incentive – “Get 10% off your first purchase + $10 extra when you trade in your first item.”
  • Promote the offer where new shoppers browse – Highlight it on product pages, exit-intent pop-ups, and during checkout.
  • Use referral perks to drive word-of-mouth – “Enjoy 10% off? Share with a friend and get another 10% when they shop.”

2. Keep Customers Engaged: Incentives That Drive Loyalty

Whether you’re offering trade-in credits or powering peer-to-peer resale, the right incentives keep customers coming back,  turning single transactions into long-term engagement.

Trade-In Incentives

Trade-in programs are most effective when they’re designed to keep customers engaging within your brand’s ecosystem.

  • Offer store credit over cash: Arc’teryx’s ReGEAR program doubled repeat purchases by rewarding customers with store credit — not cash — encouraging larger follow-up orders.
  • Add limited-time bonus incentives: Boost trade-in volume during key shopping moments (like back-to-school or holiday) by offering extra credit or rewards.
  • Streamline redemption: Make it easy for customers to apply their trade-in credit directly at checkout, both online and in-store, to reduce friction and increase usage.

Peer-to-Peer Promotions

Peer-to-peer resale doesn’t just move products — it builds vibrant customer communities and keeps shoppers engaged with your brand.

  • Showcase resale alongside brand-supplied items: Frank + Eileen’s “Re-Loved” program combines brand inventory with customer listings on the same site, strengthening community ties and reinforcing brand value.
  • Make it personal with seller-focused features: Frye uses tools like Trove’s “seller closet” to let shoppers browse items by size or seller, creating a more personalized, sticky experience that keeps customers browsing and buying.
  • Tie listings to mission-driven moments: Peak Design motivates customers to list items during Earth Month by offering bonus gift cards, combining purpose-driven marketing with peer-to-peer participation.

The Value of Email in Resale Promotions

Email remains a powerful tool to drive engagement and traffic to resale programs. For example, Arc’teryx uses email to market their digital trade-ins every 4-weeks

Tips for success:

  • Send monthly resale-focused emails to your broader customer list.
  • Maintain weekly communications with dedicated resale subscribers.
  • Integrate email signups directly from your main site – brands that take this approach see 10-20X higher registrations.

3. Loyalty and Referral Programs: Reward Repeat Buyers

Michael Kors integrated resale into its VIP loyalty program, proving that customers who earn perks through trade-ins are more likely to reinvest in new and pre-owned items. Here’s how to build a loyalty program that strengthens resale engagement:

  • Create tiered loyalty perks – “Trade in 3 items, unlock VIP pricing” or “Earn double points on resale purchases.”
  • Turn trade-ins into bigger rewards – Offer bonus points for trade-ins that can be redeemed for future purchases, exclusive discounts, or early access to sales.
  • Surprise & delight top customers – Send exclusive offers, free shipping, or early access to high-demand resale drops as a thank-you.
  • Send post-trade-in reminders – “You have $25 in trade-in credit—don’t let it go to waste!”

How to Keep Promotions Profitable

Driving conversions without undercutting margins is a major talking point in recommerce promotions. Since resale inventory is limited and often unique, brands need to be strategic about incentives. Here’s how to ensure your promotions stay profitable:

  • Use dynamic pricing – Adjust discounts based on demand and inventory levels. Offer bigger markdowns on overstocked items while keeping high-demand pieces at full price.
  • Bundle promotions to increase AOV – Offer deals like “Buy two, get 10% off” or “Trade in an item, get $15 off your next purchase” to encourage larger transactions.
  • Personalize promotions based on behavior – Instead of sitewide sales, use customer data to target the right offers at the right time (e.g., “We noticed you loved this style—get 15% off similar pre-owned pieces!”).

The key takeaway? Smarter, data-driven promotions, not just across-the-board discounts, drive sustainable growth.

Building a Promotions Strategy That Lasts

Promotions alone won’t drive lasting success – recommerce thrives on engagement, repeat purchases, and a seamless trade-in experience. When brands align incentives with customer behavior, they can turn resale into a sustainable growth engine.

This post is part of a series on effectively marketing your recommerce program – see the first post on developing a cohesive messaging strategy here

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