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The year ahead in resale.

It’s Tuesday, and Dell is taking a page from Apple by giving its PCs simpler names. COO Jeff Clarke told Bloomberg that customers prefer names that are easy to pronounce, though some have criticized the computer giant for adopting the terms “pro” and “pro max,” which may sound familiar to buyers of consumer electronics.

In today’s edition:

—Andrew Adam Newman, Alex Vuocolo

DTC

A woman taking a picture of her used shirts with her smartphone to sell online.

Irina Belova/Getty Images

One notable thing about the resale industry is, ironically enough, just how new much of it is. It’s especially true with branded resale, as evidenced by brands as prominent as New Balance and Zara launching e-commerce resale sites in 2024, with more certain to do so in the year ahead.

So let us dust off the pre-loved crystal ball and, with the help of two industry leaders, predict what lies ahead for the next trip around the sun.

New legislation will be a tailwind for resale

Right-to-repair laws that require brands to manufacture items in a way that consumers and repair shops can fix them when they break have passed in eight states as of 2024, including in Oregon and Colorado, and legislation was introduced in 30 total states last year, according to the Public Interest Research Group.

Along with diverting electronic devices from landfills, extending their life also avails them to the resale market, which is why an electronics resale marketplace like Back Market champions the laws, and is advocating for more states to pass laws in the upcoming year.

Keep reading here.—AAN

Presented By Vibes

STORES

discounts

Rneaw/Getty Images

After a year of retailers touting price cuts and affordability, the 2024 holiday season saw only a modest increase in discounting, according to a new report from Salesforce. The average discount rate for the season hit 23% in the US, which was up just 1% from the year before.

  • Yet some categories were more promotional, with a 33% average discount for general apparel, 29% for health and beauty, and 18% for home goods and decor.

Salesforce also found that an increasing number of shoppers are turning to loyalty programs, which is good news for retailers looking to attract and retain customers without marking down their merchandise. In a survey, the company found that 72% of US shoppers said loyalty programs made them more likely to stick with a brand.

Keep reading here.—AV

E-COMMERCE

One hand reaching out with retail boxes for returns while another hand holding up stop

Amelia Kinsinger

When they were unwrapped, they looked like slippers and train sets and air fryers, but here’s what much of them look like to retailers about now: boomerangs.

With returns, after all, many of those gifts are making their way back to retailers, with an estimated 16.9% of purchases returned in 2024, more than twice the 8.1% rate in the pre-pandemic year of 2019, according to an annual report from the National Retail Federation and Happy Returns, the UPS-owned logistics company.

And while retailers typically have hired seasonal workers only until they stop piping “Jingle Bells” through their stores, these days they also hire up for Q1 for the returns onslaught.

Keep reading here.—AAN

Together With Postscript

SWAPPING SKUS

Today’s top retail reads.

Lead limits: The USDA has set a maximum level for lead content in baby foods to reduce exposure to the toxic chemical. (the Associated Press)

Hard road ahead: Congestion pricing in Manhattan is reportedly taking its toll on trucking companies, raising already elevated costs for the sector. (the Wall Street Journal)

Unfair compensation: Walmart is facing a lawsuit from the federal government for allegedly forcing drivers to use expensive deposit accounts to receive pay. (Supermarket News)

Text it: 4 out of 5 consumers want to hear from brands they love via SMS. Ready to crush the mobile game? Vibes published a report loaded with deets on SMS and digital wallets. Dive into the data.*

*A message from our sponsor.

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