TIKTOK’S SHOP FOR PRE-OWNED LUXURY MARKETPLACE - HOW DOES IT WORK EXACTLY?

By: Prachi Khatri

Luxury resale has undeniably paved its way into our hearts and our closets. The pre-loved luxury market has been increasing rapidly ever since the pandemic. The global luxury resale market in 2021 was valued at approximately $32.6 billion and is likely to rise above $51 billion by 2026 according to Business of Fashion.

The concept of buying preowned fashion items was once considered a stigma that was only normalized for those who struggled financially. The concept of a circular economy associated with low-income individuals has been fading away as consumers are becoming more aware of sustainability and accessibility when purchasing luxury.

Image Credit: Amanda Vick / @amandavickcreative

Resale makes sense for fashion. Retailers push out new items seasonally and trends fade so quickly. The only constant in the world of fashion is the fact that it is constantly changing with new ideas and designs.

The recent fusion between social media and fashion commerce arguably started with Facebook’s marketplace, an opportunity for its members to capitalize on the social platform offering massive reach. Whether you were looking to style a ‘Swifty’ concert outfit on a cheap budget or wanted to sell those Jimmy Choos you only wore once, Facebook Marketplace has proven to offer a highly successful buy / sell platform for all things including fashion.

Soon after we saw Instagram offering shopable posts, which wasn’t exclusive for resale but certainly a game-chanager for businesses and influencers, particularly in fashion where visuals are key to selling.

Social media giant, TikTok known for its viral trends and short videos has entered the e-commerce world via its TikTok Shop. First launched in the US and now in the UK, the ‘Shop’ has allowed customers to purchase pre-owned luxury clothing, bags and accessories without leaving the TikTok app. This new venture has been raising eyebrows and revenue by capitalizing on TikTok’s vast audience to drive sales and promote sustainable choices. Consumer behavior amongst the younger generation has been the driving force behind the resurgence of luxury resale so it only makes sense for TikTok to introduce something like this to its users.

Image Source: TikTok

The “preowned” luxury category has enabled preloved fashion to reach to whole world of audience, where users can learn about luxury fashion, find style inspiration and add them to a Wishlist of must haves whilst being in the app itself. Businesses such as Luxe Collective and UK’s fastest growing resale platform Sellier has found huge success from leveraging their Tik Tok following.

During two of its TikTok live sessions, Luxe Collective sold 10 items including a Louis Vuitton bag, a Bottega and Fendi piece with combined sales of approximately $4500 USD just in a couple of hours. As a merchant, anyone can create an account and enlist items that will be authenticated first before publishing the listing on the app and customers can purchase via the app marketplace interface directly.

Partnering with real authenticator in November 2023, TikTok announced the authenticity of luxury handbags prior to being sold hence, making it a hot choice for customers not having to sweat about its originality.

TiktTok Shop for pre-owned luxury marketplace is a marketing genius to say the least given that the majority of its users are under 30 years of age (63% Globally). Statistically this is the generation who prioritize reducing waste over fast fashion and support sustainability.

3Three out of four Gen Z consumers prefer sustainable brands when making a purchase according to First Insight making TikTok Shop a go-to place to shop for preloved luxury items. Short videos that are easy to binge watch and standout creativity is one of the top secrets of TikTok’s popularity which drives in traffic to its marketplace.

A partnership between Vestiaire Collective and TikTok is a noteworthy example of a successful collaboration between a luxury brand and TikTok Shop. Sales and traffic for Vestiaire Collective have increased significantly because of utilizing TikTok's influencer community. Influencers like Lina Noory with 1.3M followers have produced content showcasing their top rated preowned luxury finds, increasing the platform's visibility and revenue.


The RealReal's usage of TikTok Shop to connect with younger fans is another great success. The RealReal has effectively engaged a new audience of consumers interested in sustainable and reasonably priced luxury clothes by capitalizing on TikTok's trend-driven culture.

In the fashion business, TikTok Shop's incorporation of preowned premium marketplaces has proven to be revolutionary, improving sustainability and accessibility while also giving customers a fun and enjoyable shopping experience. TikTok Shop is in a great position to lead the way as the trend of purchasing luxury secondhand items grows bridging the gap between social media and e-commerce in ways that is advantageous to both customers and the environment.


Cover Image: Solen Feyissa / @solenfeyissa