H&M Has Struggled With Sellpy Profitability
The fast-fashion giant continues to face challenges in turning a profit with its secondhand clothing unit.
Updated on Sept. 25, 2026 in Fashion
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H&M has encountered significant difficulty achieving consistent profitability for Sellpy, its secondary market platform. The unit manages massive volumes of used inventory across its European logistics network.
Why it matters
The struggle highlights the logistical complexities and high operational costs inherent in scaling a circular business model within the fast-fashion sector. Achieving margins on secondhand goods remains a key hurdle for major retailers.
Sellpy processed more than 20 million items throughout 2025, including clothing, shoes, handbags, and electronics. Consumers can find items such as used dresses listed at entry price points near $5.
The players
H&M
This Swedish multinational clothing company is one of the world's largest fashion retailers.
Sellpy
This is a secondhand e-commerce platform that manages the collection and resale of used consumer goods.
The details
Sellpy utilizes an extensive network of warehouses located across Europe to receive, sort, and process secondhand goods collected from individuals. These facilities are designed to handle millions of items annually, yet the sheer scale of the operation has not translated into reliable profitability for parent company H&M.
Timeline
More than 20 million items were processed by the unit during 2025.
Culture Shift
The difficulties in stabilizing Sellpy reflect the broader industry shift toward circular fashion business models that prioritize sustainability. Many major retailers are finding that scaling these operations to match fast-fashion efficiency is a profound challenge.
Shoppers may notice continued availability of budget-friendly secondhand goods as the company refines its resale strategy. The ongoing operational focus could lead to shifts in how consumers access and trade items through the platform in the future.
The takeaway
Retailers continue to grapple with the high costs associated with reverse logistics and labor-intensive sorting of used goods. Investors and shoppers should watch for further adjustments to these resale models as companies seek a balance between sustainability and commercial viability.
Further reading
For more on the changing retail sector, visit our Fashion section.
Source note: This article includes information reported by Bloomberg Business.
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