Neo Journal of Economy and Social Humanities (NEJESH) Volume 5.
Issue 1, 2026.
131-142 AU AU
ISSN: 2828-6480
http://dx.
org/10.
56403/nejesh.
Business Model Innovation in Online Preloved Fashion Enterprises Nora Listiana Digital Business.
Universitas Global Jakarta.
Depok.
Indonesia Article Information ABSTRACT Article History The growth of digital technology has encouraged the emergence of online preloved fashion enterprises as an alternative business model in the fashion industry.
This sector not only addresses changing consumer behavior but also supports sustainability and circular economy However, increasing competition and operational challenges require enterprises to continuously innovate their business models.
This study aims to analyze business model innovation in online preloved fashion enterprises and examine its role in enhancing competitiveness and business sustainability.
The research adopts a qualitative descriptive approach using literature review and case analysis of online preloved fashion businesses.
The findings indicate that business model innovation, particularly in value proposition, customer engagement, digital marketing, and operational efficiency, contributes significantly to improved customer trust and market The study concludes that continuous business model innovation is essential for online preloved fashion enterprises to achieve sustainable growth in the digital economy.
Received.
February 6, 2026 Revised.
February 19, 2026 Accepted.
February 26, 2026 Published.
February 27, 2026
_____________________
Corresponding Author:
Nora Listiana.
Digital Business.
Universitas Global Jakarta.
Depok.
Indonesia.
Email: noralistiana@jgu.
Keywords: Business Model Innovation.
Digital Entrepreneurship.
E-Commerce.
Online Preloved Fashion.
Sustainable Business.
AU INTRODUCTION
The rapid development of digital technology has significantly transformed business practices across various industries, including the fashion sector(Sri Handono et al.
, 2.
One of the emerging trends in the fashion industry is the growth of online preloved fashion enterprises, which offer second-hand clothing through digital platforms(Prisco et al.
, 2.
This business model not only responds to changing consumer preferences but also aligns with the principles of sustainability and the circular economy, which emphasize reducing waste and extending product life cycles(Basile et al.
, 2.
Online preloved fashion enterprises operate in a highly competitive and dynamic market environment(Persson & Hinton, 2.
Traditional retail business models are increasingly challenged by digital platforms that enable faster transactions, broader market reach, and more personalized customer interactions(Isharyani et al.
, 2.
In this context, business model innovation becomes a critical factor for enterprises to survive and achieve sustainable competitive advantage(Wang, 2.
Innovation in value propositions, customer engagement, revenue streams, and operational processes allows online preloved fashion businesses to differentiate themselves from conventional second-hand markets and large e-commerce platforms(Hellstrym & Olsson, https://internationalpublisher.
id/journal/index.
php/Nejesh Moreover, changing consumer behavior, particularly among younger generations, has contributed to the increasing acceptance of preloved fashion products(Prisco et al.
, 2.
Consumers are no longer solely driven by price considerations but are also influenced by environmental awareness, ethical consumption, and brand experience(Elmor et al.
, 2.
This shift encourages online preloved fashion enterprises to continuously innovate their business models by integrating digital marketing strategies, curated product selections, quality assurance, and seamless online purchasing systems(Tam & Lung, 2.
Despite its growing popularity, the online preloved fashion sector faces several challenges, including limited product availability, trust issues related to product quality and authenticity, and intense competition(Prisco et al.
, 2.
Therefore, understanding how business model innovation is implemented and how it contributes to business performance is essential(Latifi et al.
, 2.
This study aims to analyze business model innovation in online preloved fashion enterprises and examine its role in enhancing competitiveness and sustainability in the digital economy.
AU LITERATURE REVIEW
Business Model Innovation Business model innovation refers to changes in the way firms create, deliver, and capture value in response to environmental dynamics and market demands(Geissdoerfer et al.
, 2.
Osterwalder and Pigneur describe a business model as a conceptual tool that explains how an organization operates through key components such as value proposition, customer segments, channels, and revenue streams(Sparviero, 2.
Innovation within these components enables businesses to improve competitiveness and sustainability, particularly in digital environments(Abbes, 2.
Previous studies emphasize that business model innovation is essential for small and micro enterprises to adapt to technological advancements(Wu et al.
, 2.
Digital platforms, especially websites, enable enterprises to redesign their operational processes, enhance customer interaction, and strengthen value delivery mechanisms(Jiao et al.
, 2.
This aligns with the findings of the present study, which show that the SecondChance website functions as an integrated business system rather than merely a promotional tool(Sakas et al.
, 2.
Website-Based E-Commerce and Digital Platforms Websites play a strategic role in e-commerce by serving as primary channels for marketing, communication, and transactions(Rahayu & Fatima, 2.
According to existing research, website-based platforms provide businesses with greater control over branding, pricing, and customer data compared to third-party marketplaces(Wang & Chen, 2.
For micro-scale enterprises, this control is crucial for maintaining flexibility and reducing operational costs(Suminah et al.
, 2.
Studies on digital entrepreneurship indicate that website features such as clear navigation, structured product displays, and integrated communication tools significantly influence user experience and purchasing decisions(Paul et al.
, 2.
These findings are consistent with the field observations in this research, where the homepage, product list, and product detail pages of the SecondChance website contribute to effective value communication and customer engagement.
Consumer Trust in Online Preloved Fashion Consumer trust is a critical factor in online preloved fashion businesses due to concerns related to product quality, hygiene, and authenticity(Negash & Akhbar, 2.
Previous literature highlights that transparency in product information, high-quality images, and detailed descriptions reduce perceived risk and increase purchase intention in second-hand markets(Lou et al.
, 2.
Research on online consumer behavior shows that trust-building mechanisms are particularly important for preloved products, as buyers cannot physically inspect items before purchase(Handoyo, 2.
This supports the findings of the present study, where detailed product pages and curated product displays on the SecondChance website help address consumer uncertainty and build trust.
Customer Relationship Management and Digital Communication Customer relationship management in digital businesses increasingly relies on direct and personalized communication(Naim et al.
, 2.
Studies suggest that integrating websites with instant messaging applications enhances responsiveness and customer satisfaction, especially in markets where messaging platforms are widely used(Huang et al.
, 2.
In the Indonesian context, previous research indicates that consumers prefer fast and informal communication channels for online transactions(Sunarya et al.
, 2.
This aligns with the interview findings in this study, where the integration of WhatsApp into the website transaction process supports efficient customer interaction and strengthens relationships.
Micro-Scale Enterprises and Digital Business Sustainability Micro-scale enterprises face unique challenges, including limited financial resources, technical capabilities, and market reach(Indarto & Iskhak, n.
Literature on MSMEs emphasizes that digital transformation, even at a basic level, can significantly improve business sustainability(Satryawati et al.
, 2.
Website-based platforms enable micro enterprises to operate professionally, manage operations independently, and compete in digital markets(Fitriani et al.
Studies on sustainable business models highlight that preloved fashion enterprises contribute to circular economy practices by extending product life cycles and reducing textile waste(Shamsuzzaman et al.
, 2.
Integrating sustainability values into digital business models enhances brand image and customer loyalty(Romadhona, 2.
This perspective reinforces the findings of this study, where business model innovation supported by a website contributes to both competitiveness and sustainability(Hermundsdottir & Aspelund, 2.
Research Gap and Research Limitation Despite the growing body of literature on business model innovation, e-commerce, and consumer trust, most previous studies have examined these concepts separately rather than as an integrated framework.
Existing research has primarily focused on medium- and large-scale enterprises, marketplace-based platforms, or digital innovation in general, with limited attention given to micro-scale enterprises that implement independently managed websites as their primary business infrastructure.
In particular, research on website-based business model innovation in the context of online preloved fashion micro-enterprises remains scarce (Immaculata et al.
, 2.
Furthermore, prior studies tend to analyze business model innovation and consumer trust as independent variables influencing business performance or customer behavior, resulting in limited understanding of how specific website featuresAisuch as structured product displays, transparent product information, and integrated communication toolsAifunction as interconnected components of business model innovation.
As noted by Huang and Ichikohji .
, only a limited number of studies have utilized primary data, such as interviews and field observations, to empirically examine how digital platforms directly support business model innovation mechanisms.
This creates a gap in the literature regarding the practical and operational role of website-based platforms in supporting value creation, customer relationship management, and operational efficiency within micro-enterprises.
Moreover, micro-scale enterprises in the preloved fashion sector face distinct challenges, including limited financial resources, technological capabilities, and market access.
While standalone websites have the potential to enhance business professionalism, customer trust, and operational independence, the strategic role of such websites as integrated business model innovation mechanisms remains underexplored.
This limitation highlights the need for empirical research that connects website implementation, business model innovation, and consumer trust within a unified analytical framework.
Therefore, this study addresses these gaps by integrating the perspectives of the Business Model Canvas, consumer trust theory, and website-based e-commerce practices into a single analytical framework applicable to preloved fashion MSMEs.
By combining theoretical perspectives with empirical evidence obtained from website observation and in-depth interviews, this research provides a comprehensive and contextualized understanding of how website implementation functions not only as a technological tool but also as a strategic mechanism for value creation, customer relationship development, and operational efficiency.
This integrated approach contributes to the literature by extending business model innovation theory into the context of micro-scale preloved fashion enterprises and highlighting the strategic importance of independently managed digital platforms.
However, this study has several limitations.
First, the research employs a single case study design involving one micro-enterprise and a limited number of informants, which limits the generalizability of the findings to other preloved fashion businesses or the broader MSME sector.
Second, the study relies primarily on qualitative data obtained from interviews and field observations, which provide in-depth contextual insights but do not allow for statistical Future research is recommended to involve multiple case studies, larger samples, or quantitative approaches to enhance generalizability and provide broader insights into website-based business model innovation in digital MSMEs.
AU RESEARCH METHOD
This study uses a qualitative case study approach with primary data collection to analyze business model innovation in an online preloved fashion enterprise.
This approach is selected to obtain an in-depth understanding of how business model innovation is implemented through a website-based platform in a real business context.
Research Object and Location The object of this research is SecondChance, an online preloved fashion enterprise that specializes in the sale of curated preloved pants.
The business operates through a website-based platform named SecondChance Website, which serves as the main medium for product display, customer communication, and transaction facilitation.
The business is located in Depok.
West Java.
Indonesia, and operates in the digital retail fashion sector.
Business Scale SecondChance is categorized as a micro-scale enterprise (UMKM), based on its limited operational scope, small inventory volume, and direct owner-managed business processes.
The enterprise focuses on online sales without a physical store, relying on digital platforms to reach Data Types and Sources This study utilizes primary and secondary data.
AU Primary Data Primary data are obtained directly from the business through:
oAU Website observation, including analysis of website features, layout, product information, and transaction flow.
oAU In-depth interviews with the business owner/manager to gather information related to business model development, operational processes, and innovation strategies.
oAU Documentation, such as product catalogs, pricing strategies, and promotional content displayed on the website.
AU Secondary Data Secondary data are collected from academic journals, books, and credible online sources related to business model innovation, digital entrepreneurship, e-commerce, and sustainable fashion.
Data Collection Techniques The data collection techniques applied in this study include:
aAU Direct Observation of the SecondChance website to examine how business model elements are implemented digitally.
aAU Semi-structured Interviews with the business owner to explore strategic decisions, challenges, and innovation practices.
aAU Literature Review to support theoretical analysis and discussion.
Data Analysis Method Data analysis is conducted using qualitative descriptive analysis.
The collected data are mapped using the Business Model Canvas (BMC) framework, which consists of nine elements:
value proposition, customer segments, channels, customer relationships, revenue streams, key activities, key resources, key partnerships, and cost structure.
This mapping is used to identify patterns of business model innovation and their implications for business performance.
Validity of Data To ensure data validity, this study applies triangulation of data sources, comparing findings from website observation, interviews, and documentation.
This approach enhances the credibility and reliability of the research results.
Research Procedure The research procedure consists of the following stages:
AU Identification of research objectives and case selection.
AU Collection of primary data through website observation and interviews.
AU Compilation of supporting secondary data.
AU Mapping and analysis using the Business Model Canvas framework.
AU Interpretation of results and formulation of conclusions RESULTS AND ANALYSIS The results of this study are obtained from primary data through direct observation of the SecondChance website, documentation analysis, and interviews with the business owner.
SecondChance is a micro-scale online preloved fashion enterprise located in Depok.
West Java, operating through a website-based sales platform.
Based on the observation, the SecondChance website is structured into several main pages, including Homepage.
Product List, and Product Detail pages, which collectively support the implementation of business model innovation.
AU Website Structure and Value Proposition The homepage of the SecondChance website displays brand identity, promotional banners, product categories, and featured products.
This layout communicates the value proposition clearly, emphasizing curated, hygienic, and branded preloved pants.
The use of a simple layout and consistent color combination supports the brand message of Auaffordable but not low-quality.
Ay .
AU Product Information and Transparency The product detail page provides detailed information such as brand, size, condition, color, and price.
High-quality product images are displayed to reduce information asymmetry.
This transparency addresses common consumer concerns regarding preloved products and increases trust in the business.
AU Customer Interaction and Transaction Flow The website integrates a clear call-to-action button, namely AuBuy Now via WhatsAppAy, which allows customers to directly communicate with the admin.
This feature simplifies the transaction process and enables fast response, which is essential for a micro-scale business with limited resources.
AU Operational Management The website allows the business owner to manage product listings independently, including adding, updating, or removing products.
This supports operational efficiency and ensures that product availability information remains accurate.
Based on the website documentation, the SecondChance website demonstrates a structured layout and clear navigation flow that supports online retail activities.
Each page plays a specific role in delivering business value and facilitating customer interaction.
Analysis Based on Website Figures Homepage Interface The homepage serves as the first point of interaction between users and the business.
The visual presentation includes brand identity, promotional banners, featured products, and category This design communicates the core value proposition of SecondChance, namely curated and hygienic preloved fashion products.
From an analytical perspective, the homepage reflects value proposition clarity and brand The structured layout reduces cognitive load for users and encourages further exploration of the website, which is essential for increasing engagement and conversion rates.
Figure 1.
Homepage Interface Product List Page The product list page displays available preloved pants in a grid format, accompanied by images and pricing information.
This page allows users to browse and compare products efficiently.
This interface supports channel effectiveness and marketing efficiency.
By presenting products in an organized and visually appealing manner, the website functions as an effective sales channel that replaces the need for third-party marketplaces.
For a micro-scale enterprise, this approach increases control over product presentation and pricing strategies.
Figure 2.
Product List Page Product Detail Page The product detail page provides comprehensive information, including brand name, size, condition, color, and price.
Visual elements are emphasized to enhance transparency.
Analytically, this page addresses a critical issue in preloved fashion businesses, namely consumer trust.
Detailed product information and visual clarity reduce information asymmetry and perceived risk, thereby increasing the likelihood of purchase.
This feature represents innovation in customer relationship management through transparency and information quality.
Figure 3.
Product Detail Page Call-to-Action and Transaction Feature The AuBuy Now via WhatsAppAy button enables direct communication between customers and the business owner.
This feature integrates the website with instant messaging platforms commonly used by consumers.
From a business process perspective, this represents transaction process innovation.
The simplified transaction flow minimizes technical complexity and operational costs while maintaining This approach is particularly effective for micro-scale enterprises with limited Figure 4.
Call-to-Action and Transaction Feature Interview Results (Primary Dat.
The interview with the informant provides insight into strategic decisions behind the website The informant stated:
AuKami mengembangkan website secara mandiri untuk meningkatkan profesionalitas usaha dan membangun kepercayaan konsumen terhadap kualitas produk preloved yang kami tawarkan.
AyAU (Informant 1, personal interview, 2.
This statement confirms that the website is intended to enhance credibility and trust.
Regarding transaction strategy, the informant explained:
AuSebagian besar pembeli lebih nyaman berkomunikasi lewat WhatsApp, jadi website kami hubungkan langsung ke WhatsApp supaya proses pembelian lebih cepat.
AyAU (Informant 1.
Interview, 2.
This highlights the importance of aligning digital platforms with consumer behavior.
The informant also emphasized operational benefits:
AuDengan website sendiri, kami bisa mengatur produk, harga, dan promosi tanpa bergantung pada marketplace.
Ay (Informant 1.
Interview, 2.
This reflects innovation in operational control and efficiency.
Interview Summary with Research Informant Interview Aspect Business Motivation Value Proposition Customer Interaction Sales Channel Operational Control Business Challenges Key Informant Statement Research Interpretation Website dibuat untuk meningkatkan profesionalitas dan kepercayaan pelanggan Fokus pada produk preloved yang dikurasi dan higienis Integrasi WhatsApp untuk komunikasi Website sebagai kanal utama penjualan Pengelolaan produk dan harga dilakukan Kendala biaya hosting dan database Website supports brand credibility Innovation in value proposition Improves customer relationship Channel innovation Enhances operational efficiency Common limitation Analysis The analysis of primary data from interviews and field observation demonstrates that the SecondChance website functions as an integrated business platform rather than merely a promotional medium.
The website supports key elements of the Business Model Canvas, particularly value proposition, channels, customer relationships, and operational efficiency.
Transparency in product information and curated presentation enhances customer trust, while direct communication via WhatsApp aligns with consumer preferences and simplifies For a micro-scale enterprise, these innovations enable competitiveness and sustainability without requiring high technological investment.
Overall, the results confirm that website-based business model innovation, supported by primary data and field observation, contributes positively to customer trust, operational efficiency, and long-term business sustainability in online preloved fashion enterprises.
The analysis of business model innovation in online preloved fashion enterprises is summarized using the Business Model Canvas framework.
This framework provides a structured overview of how the enterprise creates, delivers, and captures value through digital platforms.
Table Business Model Canvas of Online Preloved Fashion Enterprises BMC Element Customer Segments Value Proposition Channels Customer Relationships Revenue Streams Key Activities Key Resources Key Partnerships Cost Structure Analysis Results Young consumers (Gen Z and Millennial.
who are price-sensitive, environmentally conscious, and active users of digital platforms.
Curated and high-quality preloved fashion products, hygienic processing, affordable prices, and transparent product information through a website.
Official website as the main sales channel, integrated with social media platforms and instant messaging applications for direct transactions.
Personalized communication through chat features, fast response service, and post-purchase follow-up to build trust and loyalty.
Direct sales of preloved fashion products, bundled product offers, and limited promotional discounts.
Product curation, quality inspection, website content management, digital marketing, and customer service.
Preloved fashion inventory, website platform, digital marketing tools, and human resources for operations and customer interaction.
Thrift suppliers, laundry and cleaning services, logistics providers, and digital payment or messaging platforms.
Inventory acquisition, website maintenance, digital marketing expenses, packaging, and operational costs.
Discussion of Business Model Canvas Results The Business Model Canvas analysis shows that business model innovation in online preloved fashion enterprises is mainly centered on value proposition and channel innovation.
The integration of a website as the primary business channel enhances operational control and customer trust while supporting a more professional brand image.
The customer relationship element emphasizes direct interaction and responsiveness, which is essential in addressing consumer concerns related to product quality and authenticity.
Meanwhile, the cost structure reflects a more efficient operational model compared to traditional retail, supporting business sustainability.
These findings reinforce that the use of a website-based business model combined with strategic innovation across BMC elements can strengthen competitiveness and long-term growth of online preloved fashion enterprises.
CONCLUSION
This study concludes that the implementation of a website-based platform plays a crucial role in supporting business model innovation in online preloved fashion enterprises.
Based on the analysis of the SecondChance website, key website components such as the homepage, product list page, product detail page, and integrated call-to-action features effectively represent core elements of the business model.
The findings indicate that the website strengthens the value proposition through clear product presentation, transparency, and curated content, which helps build customer trust in preloved fashion products.
In addition, the integration of direct communication channels through instant messaging simplifies the transaction process and enhances customer relationships, particularly for micro-scale enterprises.
Overall, the results demonstrate that a strategically designed website can function not only as a marketing tool but also as an integrated business system that supports operational efficiency, competitiveness, and business sustainability in the digital economy.
Therefore, continuous innovation in website features and digital business strategies is essential for online preloved fashion enterprises to achieve long-term growth.
ACKNOWLEDGEMENTS
The authors would like to express their sincere gratitude to all parties who contributed to the completion of this study.
Special appreciation is extended to the academic supervisor and lecturers who provided guidance, constructive feedback, and valuable insights throughout the research The authors also thank the owner and management of SecondChance for granting permission to conduct this research and for providing access to primary data, website documentation, and relevant information required for analysis.
Finally, the authors are grateful to colleagues and all individuals who offered support, encouragement, and assistance during the preparation of this research.
Their contributions were invaluable in completing this study.
REFERENCES