The Practice of Closed-loop Economics and Paradoxes of Value Creation on Used Platforms: Using the Example of Vinted

Introduction. The growth of the second-hand goods market and the development of electronic platforms contribute to convenience, environmental sustainability, and economic development. Researching these platforms is important for understanding their mechanisms, improving efficiency, and protecting consumers. Research aim: to examine the practices and strategies of second-hand goods platforms that contribute to the development of a circular economy. Materials and Methods. The study used research articles from international peer-reviewed journals covering topics in the textile industry, business and consumer behavior, sustainability, waste management, e-commerce, fashion marketing, platform models, and environmental economics. The study also used conference proceedings, including the collections “Lecture Notes in Mechanical Engineering” and “Lecture Notes in Computer Science” (Springer), among others. Results. Over the past 10 years, secondhand digital platforms such as Vinted have successfully developed new approaches to circularity along the “Earn money and save the planet by selling what you don’t wear” argument. This article examines how circularity (and economic benefits are) is integrated into company’s business model. Specifically, it discusses the paradoxes inherent to the value creation and value capture-extraction mechanisms. Likewise, through a critical analysis of the constituents of its business model, particularly company’s vision and what we considered to be an implicit predatory pricing strategy, this article outlined a possible scenario for the equilibrium of the whole ecosystem along its interactions with clothing companies. Conclusion. The e-retail platform Vinted has built an economic model that promotes and facilitates the rationalization of resources for their most productive (recycled) use, while simultaneously (ostensibly) expanding their social productivity. It is not an industrial system that is intentionally regenerative, but a platform that replaces the concept of “end-of-life” with reuse.