How dropshipping undermines the promise of the circular economy

In less than a decade, Vinted has become a trusted destination for millions of Europeans. But behind the ideal of a shared closet lies an ambiguous reality. It is that of a stealth trade in which new ultra-fast fashion stocks flood the supply. An analysis of a system that is being tested by its own excesses.

When the promise of the circular economy begins to crack

Buy and sell used clothing, extend the life of products and consume differently. The platform was built on a goal that was as intuitive as it was effective: to make secondhand a central pillar of the circular economy in fashion.

But behind the apparent simplicity of the exchange between private individuals, the boundaries become blurred. An unclear space emerges in which casual resale merges with structured business practices. An investigation published by the Dutch daily NRC Handelsblad has revealed the extent of the phenomenon. Sellers sell large quantities of new ultra-fast fashion products on Vinted, especially from Shein or Temu. They classify these as used items. This development is not insignificant; it calls into question the platform’s ability to protect the integrity of its model.

Second hand that looks like organized trade

Regular users have already noticed: some accounts show ‘wardrobes’ with several hundred or even thousand items. These are often identical, new and sometimes without a label, but clearly come from cheap industrial production. These sellers do not sell their personal wardrobe, but act like real retailers. In practice, these methods encounter few operational obstacles. The ads remain online and high sales volumes are not systematically penalized. This blurs the line between private use and commercial activity. As one industry observer sums it up: “The platform sets rules, but their enforcement seems inconsistent.”

Anatomy of a Circumvention: How to Spot ‘Fake Accounts’

The mechanism of dropshipping is well known in e-commerce. The sellers do not own the product themselves. They wait for an order, then buy it on a third-party platform and have it shipped directly to the buyers from there. The challenge for users is to recognize these invisible sales channels. Several recurring signs help identify these disguised commercial accounts:

• Sales volumes that are incompatible with private use,
• systematically new or standardized products,
• Images that come from catalogs or were artificially generated,
• a lack of purchase history combined with automated responses.

Taken together, these indications point to a systematic approach. It uses second-hand’s environmentally friendly reputation to sell mass-produced textiles.

The ambiguity of the term ‘vintage’

The economic incentive is also obvious. An item purchased for a few euros on an ultra-fast fashion platform can be resold for three or four times as much under labels such as ‘vintage’ or ‘rare’. Although the term ‘vintage’ is not legally protected, its use creates an implicit expectation among buyers: that of a product that has already had a previous life. When these terms are used to sell new products in bulk, the ambiguity becomes deceptive. This situation illustrates a central, albeit seemingly rhetorical, question, which is as follows: What is second-hand if an item has never been worn, was only purchased for resale or comes directly from an industrial production chain?

The position of the DGCCRF: No legal gray area

To shed light on this framework, it is helpful to look at the position of the French Directorate General for Competition, Consumer Affairs and Anti-Fraud (DGCCRF). This French administrative authority is responsible for monitoring fair commercial practices and protecting consumers. She was contacted for this article.

Contrary to popular belief, dropshipping is not banned. However, it must take place in a registered commercial setting. Sellers who use it must be registered, identify themselves with their SIRET number and comply with all obligations of the Consumer Protection Act. This includes transparency about identity, contact details, gross prices and cancellation conditions.

The problem lies in transferring this model to a platform designed for private individuals. The DGCCRF clarifies: “Falsely impersonating a consumer or providing false information about the essential features of the product may constitute a misleading business practice.” In short, private individuals can use dropshipping, but then they legally cease to be private individuals. Failure to comply with this status is severely punished and can result in up to two years in prison and a fine of 300,000 euros.

Responsibility of the platforms and reports by users

With the entry into force of the law on digital services, the Digital Services Act (DSA), the responsibility of the marketplaces was strengthened. You must now be able to identify commercial sellers and remove ads that have been reported as illegal. The DGCCRF states that in 2025 it has already controlled around twenty platforms on this basis.

However, an important distinction is made depending on the range. A special regulation applies to ‘very large online platforms’, so-called Very Large Online Platforms (VLOPs). They are defined by a reach of more than 45 million users per month in the European Union. In addition to giants like Amazon, Shein and TikTok, Vinted now also belongs to this category. Potential violations fall under the direct responsibility of the European Commission. For smaller actors, national authorities such as the DGCCRF are responsible for controls. They forward the reports to the Member States concerned.

Beyond internal moderation, users can also play a proactive role. If you suspect disguised trading or misleading practices, you are strongly recommended to file a report on SignalConso. This public system makes it possible to officially notify authorities of a violation. This makes it easier for the DGCCRF to carry out targeted investigations to clean up second-hand platforms.

A critical risk for the second-hand market

Beyond the legal sanctions, the entire sense of the model begins to falter. By tolerating this mix of reuse and stealth trading, Vinted is weakening its most valuable asset, the trust of its community. The danger lies less in the presence of fast fashion than in the loss of the sincerity of the second-hand idea. If the boundaries continue to blur, what was once an alternative to the mass market could become just an additional sales channel. This would undermine the spirit of responsible consumption.

Note d. Editor: Despite repeated requests from the editorial team to their human resources and marketing departments, the various brands and fashion houses contacted did not want to respond to our requests at the time of publication.