Circular retail isn’t just good for the planet - it’s good for business. And if you’re willing to commit, 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 Tern Circular Co-founder Zoe Rowswell — '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.
Profitability in circular retail isn’t just about the margin you make on the resale.
It’s about:
- Solving a customer problem – Make it easy and enticing for customers to trade-in the items they no longer want or need, drives brand value and customer retention.
- Creating rewarding incentives – Credit issued in exchange for items gives customers more reason to shop directly with you, instead of a buying an alternative somewhere else.
- Building customer lifetime value – The real gold is in the ongoing relationship; circular retail programs are one of the best ways to keep customers engaged post-purchase, building brand loyalty and brand advocates.
When you offer circular services, 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
