Circular retail isn’t just good for the planet - it’s good for business, too. And if you’re thoughtful about how you build and communicate your program, the potential for profit is very real. Ready to dive deeper into circular strategy? Let’s talk.
We get this question all the time: Can circular retail really be profitable? The short answer from our very own Zoe? Yes. Absolutely.
Zoe laid it out clearly - circular retail can be a strong business move, even when you’re working with products that have a relatively low original selling price. It’s all about how you structure your program.
A lot of brands think resale only works for luxury goods or big-ticket items. But we’ve run the numbers, and that’s not the case.
Profitability in circular retail isn’t just about the margin you make on the resale. It’s about:
- Smart program positioning – Make it easy and enticing for customers to sell back their items.
- Incentives that matter – Credit issued for returns acts as a powerful motivator to buy again.
- Customer lifetime value – The real gold is in the ongoing relationship. Take-back programs create loyalty, repeat purchases, and long-term brand connection.
When you offer a take-back incentive, you're not just closing the loop - you’re opening the door to future sales. It’s not just about the item being resold; it's about the behaviour you're encouraging. Circular models aren't just sustainable. They're strategic.
Let’s grow the future of retail together. Contact us hello@tern.eco
