EP 46: AI, Reverse Logistics, Fashion Resale & Digital Product Passports with Melissa McDermott

In this episode of All Things Circular, hosts Rich Bulger and Vic D’Arcy sit down with Melissa McDermott, founder of Reclaim, to explore how AI, resale, and digital product passports are transforming the fashion industry from the inside out.Melissa brings more than 20 years of experience across luxury, high street, and fast fashion, with leadership roles spanning the US and Europe at brands like Gap Inc., Abercrombie & Fitch, and major European fashion houses. After witnessing firsthand the inefficiencies, overproduction, and mounting return volumes inside global fashion supply chains, she shifted into technology, launching early blockchain and digital product passport initiatives before founding Reclaim, an AI-powered operating system designed to extend product lifecycles through intelligent resale, reuse, and recycling.The conversation dives deep into the cultural and economic shifts reshaping fashion. Melissa unpacks the stark differences between U.S. and European resale adoption, the growing influence of Gen Z and millennial consumers who buy with intent to resell, and the powerful statistic that 70% of secondary market buyers are new customers to a brand. Together, they examine how resale is no longer a threat to brand equity but a strategic lever to reduce customer acquisition costs, increase lifetime value, and unlock new revenue streams.Rich and Vic also explore the surge in returns, reaching as high as 40% in some cases during the e-commerce boom and the hidden downstream costs that brands must now manage. Melissa explains how Reclaim bridges supply and demand by aggregating fragmented data, dynamically valuing garments based on condition, brand perception, and market trends, and enabling consumers to see resale or take-back value at the point of purchase.A major focus of the episode centers on digital product passports, what they are, what they are not, and how they must evolve beyond compliance tools into practical enablers of authentication, resale, repair, and recycling. Melissa shares candid insights into the operational complexity of implementing traceability across global fashion supply chains and why true circularity requires ecosystem-wide collaboration.Finally, Melissa busts one of the biggest myths in circularity: that it isn’t profitable. She argues that circular models are not only viable, but increasingly essential and that AI-driven data aggregation is the missing link to making circular strategies both financially and environmentally sustainableBy the end of this episode, listeners will gain a clearer understanding of how resale technology, reverse logistics optimization, and digital product intelligence can help brands turn regulatory pressure, shifting consumer behavior, and supply chain inefficiencies into strategic opportunity.Visit our website to learn more:https://allthingscircular.comConnect with Vic: https://www.linkedin.com/in/victoria-d-arcy-aa84b51/Connect with Rich: https://www.linkedin.com/in/rich-bulger/Connect with Melissa: https://www.linkedin.com/in/melissamcdermott/SUBSCRIBE AND FOLLOW ALONG!Our podcast focuses mostly on:Circular Economy, Sustainable Living, Sustainability, Eco-Friendly, Recycling, Zero Waste, Environmentalism, Green Economy, Climate Change, Business Sustainability, Waste Management, Renewable Resources, Eco-Innovation, Supply Chain, Business, Circularity, Environmental Impact, Life Cycle Assessment, Upcycling, Downcycling, Closed Loop System, Sustainable Practices, Resource Recovery, Circular Strategies, Podcast, Alternative Materials, Reverse Logistics, ITAD, Lifecycle Services, Product Sourcing, and more!