Klarna and Poshmark’s latest resale integration offers instant relisting of past purchases, while Farm Rio expands into circular commerce.
Klarna has partnered with Poshmark to embed resale directly into the digital shopping journey. Users of Klarna’s U.S. app can now relist items they previously bought through Klarna onto Poshmark’s marketplace as easily as they bought it.
“This collaboration redefines how users engage with resale by enabling them to list eligible items from past Klarna purchases with just a few taps — product details and images are automatically populated, turning a traditionally manual and inconvenient process into a quick, seamless and intuitive experience,” David Sykes, Klarna’s chief commercial officer, said in a statement.
What once required effort, like digging through receipts, uploading images, and writing product descriptions, has been reduced to nearly frictionless commerce. It’s an elegant solution, but one that serves a practical purpose: giving consumers a way to reclaim value in a high-inflation environment, while also participating in the circular economy.
“At Poshmark, we’re always looking for innovative ways to remove friction from the resale experience and empower people to easily bring their closets online,” said Manish Chandra, founder and CEO of Poshmark. “This commitment created a natural opening to collaborate with Klarna. Imagine a Klarna shopper who no longer wants an item they just purchased; our partnership offers a seamless path for them to embrace resale as a cost-effective alternative.”
The launch coincided strategically with the back-to-school shopping season. “Consumers are clearing out closets, updating wardrobes and reevaluating what they already own — creating the perfect opportunity to turn yesterday’s purchases into tomorrow’s finds,” Sykes said.
“The back-to-school season is the perfect time for refreshing wardrobes, and we’re thrilled to team up with Klarna to make that easier and more sustainable than ever,” Chandra said. “This partnership isn’t just about convenience; it’s about making it incredibly simple and fun to shop the largest network of closets across America, all while empowering individuals to earn from their style.”
According to Global Market Insights, the global secondhand fashion market is expected to grow from $208.6 billion in 2025 to more than $521.5 billion by 2034, driven largely by Gen Z and millennial shoppers who are both cost-conscious and sustainability-minded.
Poshmark’s own numbers back this up; more than 400 million items have been listed and circulated through its platform. A recent internal survey revealed that 90 percent of users found the Klarna resale feature saved them time, and 78 percent said it encouraged them to resell something they otherwise would have kept.
“Seamlessly connecting closets across America,” as Chandra put it, expands the network of peer-to-peer fashion resale, turning individual closets into micro-marketplaces. For Poshmark, this means acquiring new resellers without traditional onboarding friction. For Klarna, it’s a chance to extend its buy-now-pay-later utility into a full-lifecycle retail loop.
Sykes described the partnership as a shared mission “to simplify resale and empower millions of consumers to actively participate in the circular economy.” Chandra called it a “win-win-win,” allowing users to monetize unworn fashion, bringing Poshmark new sellers, and supporting more responsible retail habits.
Artificial intelligence and machine learning aren’t yet part of the integration, but Chandra said the company is “actively exploring future AI/ML integration to enhance their offerings.” The future of recommerce, it seems, could involve automated tagging, predictive resale values, and listing suggestions powered by machine learning.
Meanwhile, Brazilian fashion label Farm Rio is taking its own steps into the resale space. Known for its vivid prints and tropical maximalism, the label has launched a new program called Closet to Closet, giving its U.S. customers two options for reselling pieces: ThredUp and Poshmark.
Through ThredUp’s resale-as-a-service (RaaS) platform, shoppers can ship in gently worn apparel, shoes, and accessories from any brand using a prepaid label generated on Farm Rio’s resale site. Items that pass ThredUp’s quality checks and are sold on the platform earn the sender Farm Rio store credit, usable online or in-store. Farm Rio joins a growing list of fashion labels using ThredUp’s white-labeled infrastructure, including J.Crew, Tommy Hilfiger, and Madewell.
The rollout is currently U.S.-only, but international expansion is on the horizon. It’s a clear signal that resale isn’t being treated as an afterthought by brands, but as a core component of post-purchase experience.
The secondhand surge is hardly confined to the U.S., though. Across the Atlantic, Britons are forecast to spend £4.8 billion — roughly $6.4 billion — on secondhand goods online in 2025, according to new data from the Centre for Economics and Business Research commissioned by Amazon. That marks a significant increase from the estimated £4.3 billion, or $4.9 billion, spent in 2024.
While two-thirds of U.K. consumers bought pre-owned items online in the past year, that share is expected to rise further as economic pressure collides with growing environmental awareness. Some shoppers are motivated by price, others by purpose. Either way, the numbers are moving in only one direction.
The expansion of secondhand shopping isn’t limited to peer-to-peer platforms. Major global retailers are rushing to establish resale channels of their own. Zara’s parent company, Inditex, has extended its resale program into key global markets, including the U.S., France, and Germany. Meanwhile, Amazon has broadened its “Amazon Second Chance” initiative, offering returned and pre-owned items from brands such as Dior and Gucci at discounted rates.
In the U.S., the secondhand market is already worth over $50 billion, with platforms such as ThredUp, Poshmark, and Depop leading the way. For Gen Z, cost is not the only factor — sustainability is a growing motivator. In 2021, 42 percent of global Gen Z shoppers expressed openness to buying secondhand apparel. According to Kadence International, buying used instead of new cuts emissions by 25 percent. That kind of impact hasn’t gone unnoticed in a climate where fast fashion has become synonymous with environmental degradation.
And as inflation reshapes household priorities, resale’s appeal is only strengthening. Nearly 60 percent of retail executives surveyed in recent months believe price and value will matter more to consumers than brand loyalty in the coming year. With holiday sales events like Black Friday and Cyber Monday looming large in purchase plans, consumers are piecing together wardrobes with strategy — not just style.
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