Purpose – The study aims to provide a comprehensive review of re-commerce business models in the secondhand fashion sector, identifying key drivers, challenges, and research gaps. As secondhand fashion gains popularity, understanding the evolving landscape of re-commerce is essential for both academics and practitioners. Design/methodology/approach – This study employs a systematic literature review approach, analysing peer-reviewed articles and grey literature on fashion re-commerce. An online search was conducted across three academic databases – Scopus, EBSCOhost, and Emerald – selected for their disciplinary coverage and relevance. Findings – This study identifies three fashion re-commerce business models, their characteristics, key drivers, and challenges. Key factors driving fashion re-commerce include consumer motivations such as convenience, environmental concerns, and economic value; retailer motivations linked to the financial viability of the business model and sustainability commitments; and the enabling role of technology. Key challenges involve perceived risks in online purchases, supply uncertainty, and operational hurdles. Literature gaps identified in the study inform future research directions. Originality/value – This study contributes to the growing field of fashion re-commerce by exploring its business models, key drivers, and challenges, an area often overlooked in favour of consumer behaviour research.