H&M holds an 82% stake in Swedish secondhand clothing platform Sellpy. Sellpy operates a fully managed model—sellers simply put their clothes into a bag costing about €3 and send it off, while authentication, photography, pricing, warehousing, and shipping are all handled by the platform, with sellers paying €1.20 per item plus up to 60% of the final sale price. Twelve years after founding, with 2,700 employees, it is still losing money, and it remains unclear when it will turn a profit. RBC Capital Markets analyst Richard Chamberlain warned in a July report that Sellpy's secondhand business could cannibalize H&M's core new-product sales. Sellpy CEO Mikael Arnör is pinning his hopes for improving profitability on AI. But Sara Rosengren, a professor at the Stockholm School of Economics, points out that Vinted lets sellers manage their own listings, set their own prices, and handle shipping, with the platform taking only about a 5% commission on transaction value—requiring less investment and carrying lower risk; Sellpy has to handle processing and warehousing itself. Although H&M CEO Daniel Ervér believes the secondhand business helps the group understand consumer behavior, Sellpy and the group's other brands' resale operations accounted for less than 1% of H&M's revenue last year. The secondhand clothing market is growing at more than twice the rate of the overall market, doubling in size over the past five years to $290 billion, or about 10% of global apparel sales.