Last year, Farfetch launched a pilot program in Europe allowing consumers to trade in designer handbags for credit. Eighteen months later, the luxury fashion platform said it is now expanding the Farfetch Second Life resale program to the United States, competing with similar programs by Rebag and Mercati.
To participate, consumers can submit information and photographs of the bags they would like to sell. These submissions are reviewed by Farfetch’s partner, which will offer a price within two business days. If the price is accepted, the bag is sent for verification, free of charge. Once verified, Farfetch immediately credits the consumer’s account with the offered value, which they can use to purchase new items on Farfetch.com.
“The luxury fashion industry is increasingly aligning with sustainable fashion,” Giorgio Belloli, chief commercial and sustainability officer, said in a statement. “Like the online luxury market, the pre-owned luxury market is growing rapidly and is forecast to reach $64 billion within the next five years. After the successful launch of the Farfetch Second Life pilot program in the European market last year, we are excited to bring this service to our consumers in the U.S.”
Farfetch described the Second Life program as a “key part of Positively Farfetch, the company’s mission to become the global platform for good in luxury fashion.”
In the past year, the luxury disruptor has launched a series of product features and campaigns to help consumers shop more sustainably. These include its Farfetch Donate service, which enables consumers to make donations and receive credit in return; the Fashion Footprint Tool, which helps consumers “easily identify how they can help the planet with their wardrobes;” and Climate Conscious Delivery, which makes every consumer delivery from Farfetch.com carbon neutral.
In addition to the U.S. launch, European consumers will now be able to shop from localized versions of the Farfetch Second Life website in German, Dutch, Spanish, French, Italian Danish and Swedish.
The luxury marketplace’s Second Life expansion comes on the heels of a third quarter that saw Farfetch’s total gross merchandise value rate jump 62 percent year over year. Digital platform GMV growth, 60 percent, was the highest rate for Farfetch in 10 quarters, according to founder, CEO and chairman José Neves. Still, the company reported a net loss after tax totaling $537 million, exceeding the $90.5 million lost in the comparable quarter last year.