The fashion industry is undoubtedly a significant contributor to environmental degradation, by producing approximately 1.2 billion tons of carbon emissions each year, corresponding to around 8 per cent of global greenhouse gas emissions and consuming approximately 93 billion cubic meters of water per year, enough to meet the needs of five million people. In addition, the proliferation of the fast fashion model has exacerbated waste production, with millions of tons of textiles ending up in landfills annually. The lack of efficient and transparent recommerce platforms limits the potential for second-hand markets to contribute to circular economy models. This study introduces REFASHION, a blockchain-powered e-retail platform designed to facilitate second-hand trading, upcycling, and recycling of fashion products while ensuring security, transparency, and traceability through blockchain technology. The platform integrates an incentive-based mechanism through tokenized rewards to encourage sustainable consumer behaviors. This study details the technological framework, methodology, expected environmental and economic impact, and implementation challenges of REFASHION. The findings demonstrate that REFASHION has the potential to revolutionize the fashion recommerce industry by fostering sustainability and consumer engagement.